2019 (8) TMI 1701 - AT - Income Tax

Monetary limits for filing of appeals by the Department before the Tribunal - HELD THAT - As the tax effect in dispute in the captioned appeal is stated to be below the enhanced monetary limit of ₹ 50 lakhs specified in the CBDT Circular dated 08.08.2019 (supra) read with circular 11.07.2018 (supra). D.R. appearing for the Revenue was required to state his position; he has not referred to any material which would show that the captioned appeal is protected by any of the exceptions provided in para 10 of the CBDT circular dated 11.07.2018 (supra) and its amendment dated 20th August, 2018. Without going into the merit of the issues raised, the captioned appeal is deemed to be withdrawn/not pressed as it s filing is not in consonance with the CBDT circular dated 08.08.2019 (supra) read with circular 11.07.2018.

Summary

Issues:
Appeals filed by Revenue for assessment years 2008-09 & 2010-11, monetary limits for filing appeals by Department before Tribunal, exceptions provided in CBDT circular, compliance with circulars, recall of order for reinstitution of appeal.

Analysis:
The appeals filed by the Revenue for assessment years 2008-09 & 2010-11 were directed against orders passed by the CIT(A)-50, Mumbai, arising from Assessing Officer's orders under Section 143(3)/153A of the Income Tax Act, 1961. The CBDT, through Circular No. 17/2019, amended the monetary limits for filing appeals before the Tribunal, setting the limit at ?50 lakhs. The tax effect in dispute in the present appeals was below this enhanced monetary limit specified in the circulars dated 08.08.2019 and 11.07.2018.

During the proceedings, the learned D.R. representing the Revenue failed to demonstrate that the appeal fell within the exceptions provided in the CBDT circulars. Consequently, without delving into the merits of the issues raised, the appeals were deemed to be withdrawn/not pressed as their filing did not align with the circulars. The Tribunal noted a Supreme Court case where the enhanced limit was considered, further supporting the decision to dismiss the appeals.

The Tribunal clarified that if the Revenue later discovers that the appeal is protected by any exceptions in the circular, they can approach the Tribunal for recall of the order and reinstitution of the appeal for adjudication on merits. The Tribunal would then assess such applications in accordance with the prevailing law. Ultimately, applying the circulars dated 08.08.2019 and 11.07.2018, the appeals of the Revenue were dismissed as withdrawn/not pressed.

The decision was pronounced in open court on 20th August 2019, emphasizing the adherence to the circulars and the importance of meeting the specified monetary limits for filing appeals.