2019 (8) TMI 1741 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - Tax effect involved in the appeal under consideration is not more than 50 lacs hence the instant appeal is liable to be dismissed as not maintainable in view of the latest CBDT Circular No.17/2019 dated 08.08.2019 whereby the Revenue Department is precluded from filing the appeal(s) before appellate tribunal against the order (s) of CIT(A) in which the tax effect does not exceed 50, 00, 000/- as specified in the Circular and the CBDT Clarification dated 20th August 2019 whereby it is clarified that revised monetary limits so mentioned in the circular 17/2019 is applicable to all pending SLPS/Appeals/Cross Objections/References.

Summary

Issues: Jurisdiction of Appellate Tribunal based on tax effect under CBDT Circular No.17/2019.

In this judgment by the Appellate Tribunal ITAT Amritsar, the Revenue Department appealed against an order by the Ld. CIT(A) under section 250(6) of the Income Tax Act, 1961. The appeal was contested on the grounds that the tax effect involved did not exceed 50 lacs, rendering it not maintainable as per the CBDT Circular No.17/2019. The Circular precludes the Revenue Department from filing appeals before the appellate tribunal when the tax effect is below the specified limit. The Tribunal observed the tax effect was within the limit, leading to the dismissal of the appeal. However, the Revenue Department was granted liberty to seek a recall of the order if the appeal fell within exceptions specified in Circular No.03/2018 or if the tax effect exceeded 50 lacs. Ultimately, the appeal was dismissed as withdrawn, in accordance with the Circular's provisions. The judgment was pronounced in open court on 22/08/2019.