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2019 (9) TMI 211 - AT - Income TaxMonetary limit - maintainability of appeal - low tax effect - HELD THAT - Admittedly, the tax effect in the Departmental Appeal is less than ₹ 50 lakhs. Vide Circular No.3/2018 Dated 11th July, 2018 issued by CBDT u/s 268A, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of ₹ 20 lakhs. CBDT Vide Circular No.17/2019 Dated 08.08.2019 amended the earlier Circular No.3/2018 (supra) whereby it has been directed that monetary limit for filing the Departmental appeal in Income Tax Cases may be enhanced further through this amendment in para-3 of the Circular mentioned above and accordingly, the monetary limit for filing the appeal before the Appellate Tribunal have been enhanced to ₹ 50 lakhs. Since Circular No.17/2019 Dated 08.08.2019 have been issued to amend its earlier Circular No.3/2018 (supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly. D.R. in view of the above Board s Circulars did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circulars. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.
Issues:
- Appeal by Revenue challenging deletion of additions - Tax effect below specified limit for filing appeal - Applicability of CBDT Circulars on monetary limits for filing appeals Analysis: The judgment pertains to an appeal by the Revenue against the deletion of additions amounting to ?65,44,000 and ?18,28,800 for the assessment year 2004-2005. The key issue addressed is the tax effect in the Departmental Appeal being less than ?50 lakhs, which falls below the monetary limit set by Circular No.3/2018 issued by the CBDT under section 268A of the Income Tax Act. This circular directs that the Department shall not file an appeal before the Tribunal if the tax effect does not exceed ?20 lakhs. Subsequently, Circular No.17/2019 amended the earlier circular, increasing the monetary limit for filing appeals before the Appellate Tribunal to ?50 lakhs. The judgment emphasizes that all conditions of the earlier circular shall apply to the amended version. The Departmental Representative (D.R.) did not press the appeal in line with the CBDT Circulars, as the case did not fall within the exceptions provided. The judgment highlights that the Department's appeal is not maintainable as it goes against the Board's instructions outlined in the Circulars. Consequently, the appeal of the Revenue is deemed liable to be dismissed based on the directives provided in the Circulars. Ultimately, the appeal of the Department is dismissed, in accordance with the provisions and guidelines set forth in the Circulars issued by the CBDT. In conclusion, the judgment underscores the significance of adhering to the monetary limits for filing appeals as stipulated in the CBDT Circulars, ensuring compliance with the directives provided by the Board. The decision reflects a strict interpretation and application of the Circulars, emphasizing the importance of following the prescribed guidelines in matters concerning the filing of appeals before the Appellate Tribunal in Income Tax Cases.
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