2019 (8) TMI 1884 - AT - Income Tax

Monetary limit for filing the appeals by the Department before the ITAT - HELD THAT - In the present case it is an admitted fact that the CBDT vide Circular No. 17/2019 enhanced the monetary limit to Rs. 50, 00, 000/- for not filing the appeal by the department before the ITAT earlier this limit was specified at Rs. 20, 00, 000/- in the original Circular no. 03/2018 dt. 11/07/2018. CBDT simply enhanced the monitory limit and the directions given earlier vide para nos. 12 13 of the Circular no. 3 / 2018 dt. 11/07/2018 are still intact which is crystal clear from the language of the Circular no. 17/2019 wherein it has been mentioned that there is enhancement of monetary limit and amendment to Circular no. 3 /2018 for reducing the litigation. We therefore are of the confirmed view that the amended Circular No. 17/2019 now issued by the CBDT is also applicable to the pending appeals as has been specified in para 13 of the original Circular no. 3/2018 dt. 11/07/2018 and that the Department ought not have filed the appeals before the ITAT where the tax effect is Rs. 50 Lacs or less. Appeal filed by the Department is dismissed.

Summary

Issues:
Appeal maintainability based on monetary limit enhancement by CBDT Circular No. 17/2019.

Analysis:
The appeal pertains to a dispute over the maintainability of a Revenue appeal against an order of the Ld. CIT(A) based on the monetary limit set by CBDT Circular No. 17/2019. The Assessee argued that the appeal is not maintainable due to the circular increasing the limit to Rs. 50,00,000 from Rs. 20,00,000. The Revenue contended that the circular was not retrospective, but the Assessee argued for retrospective application to pending appeals. The Tribunal examined the circular, which clearly enhanced the monetary limits for filing appeals before the ITAT, High Courts, and Supreme Court, aiming to reduce litigation.

The Tribunal analyzed the language of Circular No. 17/2019 and noted the removal of anomalies from the earlier Circular No. 3/2018. It highlighted that the circular applied retrospectively to pending appeals, as specified in para 13 of the original circular. The Tribunal emphasized that the directions given in the previous circular remained intact, indicating that the amended circular was applicable to pending appeals. A decision from a coordinate Bench further supported the view that the enhanced monetary limits applied to pending appeals, not just future ones.

The Tribunal referenced a decision from the ITAT, Ahmedabad Bench, which clarified that the relaxation in monetary limits for departmental appeals under the CBDT circular dated 8th August 2019 applied to pending appeals as well as future ones. Based on these considerations, the Tribunal dismissed the appeal filed by the Revenue, affirming the application of the enhanced monetary limits to pending appeals in addition to future filings.