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2019 (9) TMI 760 - AT - Income TaxMaintainability of appeal - monetary limit - low tax effect - scope of minimum threshold limit - HELD THAT - Revised / enhanced minimum threshold limit of tax effect of ₹ 50,00,000/- vide aforesaid recent CBDT Circular No. 17/2019 dated 08.08.2019 is applicable not only for appeals to be filed by Revenue in future; but also for appeals already filed by Revenue in ITAT. Accordingly, in view of the aforesaid recent CBDT Circular No. 17/2019 dated 08/08/2019; the direction in aforesaid earlier Circular dated 11.07.2018 to withdraw /not press Revenue s appeal with tax effect below ₹ 20,00,000/-; is now to be read as direction to withdraw / not press Revenue s appeal with tax effect below revised / enhanced limit of ₹ 50,00,000/-. By necessary implication, therefore, all existing appeals in ITAT, having tax effect below the revised / enhanced limit of ₹ 50,00,000/-, are to be treated as withdrawn / not pressed; and are, not maintainable. We also hold, in view of the foregoing, that the relaxation in monetary limits for filing of appeals by Revenue in ITAT, vide aforesaid CBDT Circular dated 08.08.2019 shall be applicable also to the pending appeals in ITAT already filed by Revenue. It is well settled that CBDT Circulars and Instructions, which are beneficial for assessee, are binding on the authorities below. Accordingly, this appeal filed by Revenue is treated as withdrawn / not pressed by Revenue.
Issues Involved:
1. Legitimacy of the order passed by the Commissioner of Income Tax (Appeals). 2. Deletion of addition on account of bogus share application money. 3. Applicability of the recent CBDT Circular No. 17/2019 regarding the monetary limit for filing appeals. Detailed Analysis: 1. Legitimacy of the Order Passed by the Commissioner of Income Tax (Appeals): The Revenue challenged the order of the Commissioner of Income Tax (Appeals)-23, New Delhi, dated 16.12.2014, arguing that the order was not correct in law and facts. The Revenue's grounds of appeal included the assertion that the CIT(A) erred in deleting the addition of ?75,00,000/- out of the total addition of ?1,33,35,000/- made by the Assessing Officer (AO) on account of bogus share application money. 2. Deletion of Addition on Account of Bogus Share Application Money: The Revenue contended that the CIT(A) erred in deleting the addition of ?75,00,000/- out of the total addition of ?1,33,35,000/- made by the AO on account of bogus share application money. The CIT(A) had found that the addition was not justified, leading to the deletion of the specified amount. 3. Applicability of the Recent CBDT Circular No. 17/2019 Regarding the Monetary Limit for Filing Appeals: At the outset of the hearing, it was noted that the tax effect in the appeal was below ?50,00,000/-. The Bench referred to the recent CBDT Circular No. 17/2019 dated 08.08.2019, which enhanced the minimum threshold limit of tax effect for filing appeals by the Revenue in the ITAT to ?50,00,000/-. The Senior Departmental Representative admitted that the tax effect in the present appeal was below ?50,00,000/-, but stated that clarification from CBDT was awaited regarding the applicability of the revised limit to existing appeals. The Tribunal referred to the CBDT Circular No. 17/2019, which increased the monetary limits for filing appeals to ?50,00,000/- for the ITAT, ?1,00,00,000/- for the High Court, and ?2,00,00,000/- for the Supreme Court. The Circular also provided that the revised limits would apply to pending appeals, ensuring parity in filing appeals for different assessment years. The Tribunal noted that the earlier CBDT Circular No. 3/2018 directed the withdrawal/not pressing of pending appeals below the specified tax limits, and the recent Circular No. 17/2019 further enhanced these limits without amending any other material part of the earlier Circular. Thus, the direction to withdraw/not press appeals with tax effect below ?20,00,000/- was now to be read as applicable to appeals with tax effect below ?50,00,000/-. The Tribunal cited precedents where the enhanced monetary limits were applied retrospectively to pending appeals, including decisions by the ITAT, Ahmadabad, and the Supreme Court's dismissal of SLPs with tax effects below ?2,00,000/-. The Tribunal concluded that the revised monetary limit of ?50,00,000/- applied to both future and pending appeals, making the present appeal not maintainable. The appeal was dismissed as withdrawn/not pressed, with liberty for the Revenue to seek recall of the order if the appeal was found not covered by the Circular. Conclusion: The appeal was dismissed as withdrawn/not pressed and not maintainable due to the revised monetary limits set by the CBDT Circular No. 17/2019, which applied retrospectively to pending appeals. The Tribunal's order was pronounced in the open court on 22/8/2019.
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