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2019 (9) TMI 548 - AT - Income TaxMaintainability of appeal - low tax effect - monetary limit for filling appeal - HELD THAT - As relying on DINESH MADHAVLAL PATEL 2019 (8) TMI 752 - ITAT AHMEDABAD we are of the view that the relaxation in the monetary limit in departmental appeals vide circular dated 8th August, 2019 shall be applicable to the pending appeals in addition to the appeals to be filed henceforth. Thus, the contention of ld D.R. is dismissed. Accordingly, we dismiss the appeal filed by the Revenue without going into merits of the case. However, it is made clear that the Department is at liberty to file Miscellaneous Application, if the tax effect is found to be more than the prescribed limit of ₹ 50,00,000/- as per the amendment carried out by the CBDT in Circular No.17/2019, dated 8th August, 2019, or any of the conditions etc. as available in the amended para 10 of Circular No.3/2018, dated 20th August, 2018. Accordingly, the appeal of the Revenue deserves to be dismissed.
Issues:
- Maintainability of the appeal by the Revenue due to tax effect being less than prescribed limit - CBDT Circulars specifying monetary limits for filing appeals in income tax matters - Applicability of amended Circular No. 17/2019 dated 8th August, 2019 to pending appeals - Dismissal of appeal without going into merits due to tax effect below prescribed limit Issue 1: Maintainability of the appeal by the Revenue The appeal filed by the Revenue was against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2013-14. However, it was noted that the tax effect in the present appeal was less than ?50 lakhs. As per CBDT Circular No.17/2019, dated 8th August, 2019, appeals with tax effect below the prescribed limit are not maintainable. Issue 2: CBDT Circulars specifying monetary limits for filing appeals The CBDT issued Circulars specifying monetary limits for filing appeals in income tax matters. Initially, Circular No.3/2018, dated 11th July, 2018, set the monetary limits for filing appeals before different authorities. Subsequently, Circular No.17/2019, dated 8th August, 2019, enhanced these limits for filing appeals before the Income Tax Appellate Tribunals, High Courts, and the Supreme Court. Issue 3: Applicability of amended Circular No. 17/2019 to pending appeals The Tribunal considered the applicability of the amended Circular No. 17/2019 dated 8th August, 2019, to pending appeals. It was held that the relaxation in monetary limits for departmental appeals should apply to pending appeals in addition to those filed in the future. The Tribunal dismissed the contention that the modifications were not applicable to pending appeals. Issue 4: Dismissal of appeal without going into merits Considering the tax effect being below the prescribed limit and the provisions of the CBDT Circulars, the Tribunal dismissed the appeal filed by the Revenue without delving into the merits of the case. The Department was given the liberty to file a Miscellaneous Application if the tax effect exceeded the prescribed limit or other conditions as specified in the Circulars. In conclusion, the Tribunal dismissed the appeal by the Revenue due to the tax effect being below the prescribed limit, as per the CBDT Circulars, without examining the merits of the case. The applicability of the amended Circular No. 17/2019 to pending appeals was affirmed, allowing for the relaxation in monetary limits for departmental appeals.
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