2019 (8) TMI 1763 - HC - Income Tax

Maintainability of appeal - monetary limit as prescribed as per Circular No.3 of 2018 dated 11th July, 2018 - Scope of amendment - HELD THAT - On the query of the Court as to whether the Circular is applicable to pending matters, the learned counsel draws the attention of this Court to the communication dated 20th August, 2019 made by the Central Board of Direct Taxation to all the Chief Commissioners of Income Tax clarifying at paragraph No.3 that the monetary limit prescribed in Circular No.17 of 2019 is applicable to all pending Special Leave Petitions, Appeals, Cross Objections and References. We permit the appellant to withdraw the appeal for the reasons stated above. Liberty is also granted to the appellant to seek revival of this appeal, if it is found that the matter falls within the exception carved out in Clause 10 of Circular bearing No.3 of 2018.

Summary

Issues:
1. Applicability of Circular No.17 of 2019 regarding monetary limit for filing appeals.
2. Clarification on the applicability of the Circular to pending matters.

Analysis:

Issue 1: Applicability of Circular No.17 of 2019
The judgment discusses the Circular No.17 of 2019 dated 08th August, 2019, which amended the monetary limit for filing appeals by the Departments before various tribunals and courts. The earlier limit of ?50,00,000 was raised to ?1,00,00,000. The appellant's counsel brought this Circular to the attention of the Court, arguing that the appeal is not maintainable due to the increased limit. Reference was made to Clause 10 of Circular No.3 of 2018, which provides exceptions to the monetary limit. The counsel requested liberty to move the Court if the matter falls within these exceptions. Ultimately, the Court permitted the appellant to withdraw the appeal based on the Circular and granted liberty to seek revival if falling within the exceptions.

Issue 2: Clarification on Applicability to Pending Matters
The judgment addresses the query of whether the Circular applies to pending matters. The counsel referred to a communication by the Central Board of Direct Taxation clarifying that the monetary limit prescribed in Circular No.17 of 2019 is indeed applicable to all pending Special Leave Petitions, Appeals, Cross Objections, and References. Consequently, the appellant was allowed to withdraw the appeal with the option to seek revival if falling within the exceptions outlined in the Circular.

In conclusion, the judgment delves into the impact of Circular No.17 of 2019 on the monetary limit for filing appeals, the exceptions provided in Circular No.3 of 2018, and the applicability of the Circular to pending matters, ensuring clarity on the course of action for the appellant in light of these legal provisions.