2022 (6) TMI 1446 - AT - Income Tax

Maintainability of appeal by the Revenue before the tribunal - Monetary limit - rejection on low tax effect - HELD THAT - As we find from the records that the tax effect in the instant appeal is Rs. 44,50,978/- only as per the relevant column in Form 36 herein. We thus quote the CBDT s circular No. 17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the department in Income-tax cases before various appellate forums. The earlier circular No. 03/2018 dated 11-07-2018 had fixed monetary limit for filing of appeals by the Revenue before the tribunal at Rs. 20.00 lakhs which stands enhanced in the Circular dated 08-08-2019 to Rs.50.00 lakhs qua all pending appeals as well. All these facts have gone unrebutted from the Revenue side. We accordingly reject it s instant appeal. Revenue s appeal is dismissed for involving lower than the prescribed tax effect in above terms.

Summary

Issues:
1. Appeal against Commissioner of Income Tax(Appeals) order for A.Y. 2011-12.
2. Tax effect in the appeal.
3. Revision of monetary limits for filing appeals by the department.
4. Dismissal of Revenue's appeal due to lower tax effect.

Analysis:
1. The judgment pertains to the Revenue's appeal against the Commissioner of Income Tax(Appeals) order for the Assessment Year 2011-12. The appeal was directed against the order dated 03.08.2020 passed in proceedings under section 144 read with section 147 of the Income Tax Act, referred to as "the Act."

2. The Tribunal noted that the tax effect in the instant appeal was Rs. 44,50,978/- as per the relevant column in Form 36. The Circular No. 17/2019 dated 08-08-2019 issued by the CBDT revised the monetary limits for filing appeals by the department in Income-tax cases before appellate forums. The earlier circular had set the limit at Rs. 20.00 lakhs, which was increased to Rs. 50.00 lakhs in the 2019 circular. As these facts were undisputed and the tax effect was below the prescribed limit, the Tribunal rejected the Revenue's appeal.

3. The Tribunal highlighted the revision of monetary limits for filing appeals by the department, emphasizing the increase from Rs. 20.00 lakhs to Rs. 50.00 lakhs as per Circular No. 17/2019. This revision applied to all pending appeals, including the one under consideration. The Tribunal's decision to reject the Revenue's appeal was based on this revised monetary threshold.

4. Ultimately, the Tribunal dismissed the Revenue's appeal due to the appeal involving a tax effect lower than the prescribed limit set by the CBDT. The order was pronounced in open court on 28th June 2022, emphasizing the adherence to the revised monetary limits for filing appeals by the department in Income-tax cases.