Appels of revenue – tax effect limits for not filing as well as for withdrawing/ not pressing pending appeals of revenue is a very important decision to bring in result orientation and objectivity in litigation by revenue it must be followed at all forums.

[CA DEV KUMAR KOTHARI]

Earlier article:

Earlier article title “CBDT revised Monetary Limits For Filing Appeals By tax authorities and direct to withdraw old appeals also the question is whether subordinates of CBDT will follow instructions? It is doubtful considering past experience”. Webhosted on

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=6582&kw=cbdt-revised-monetary-limits-filing-appeals-tax-authorities-direct-withdraw-old-question-subordinates-follow-instructions-doubtful

was about latest circular no. 21/ 2015, dated 10.12.2015 

The ITAT has complemented the decision:

The ITAT has complimented the CBDT for issuing Circular No. 21/ 2015 dated 10th December 2015 .

It has been reported that the ITAT has acted quickly  to give effect to the said Circular of the CBDT. During last few days over the weekend and past few days, the Hon’ble Members, Registrar and Bench Clerks of ITAT have been involved in sorting through thousands of appeals and identifying the ones that qualify for dismissal pursuant to the said Circular.  The Ahmedabad and Rajkot Benches (through video-conferencing) will collectively dispose off around 1,500 low-tax effect appeals of the department in this week.

A similar exercise is underway in the other Benches of the ITAT. The Hon’ble President of the ITAT has also requested members of the Bar to furnish a list of such appeals.

Departmental Representative must also be instructed:

From the above new report, it appears that the ITAT has requested to members of the Bar to furnish list of such appeals.

Usually cases of revenue are being represented by Departmental Representatives who are from the tax department.

The departmental representatives can be best to provide list of such cases. Rather they should move petition for withdrawal of eligible appeals for withdrawal / not pressing. The ITAT can also direct them to do so.

Action on part of tax payer / assessee who are respondents in such appeals:

The assessee is a respondent in departments appeal. He has right to represent the case before the ITAT. In case appeal deserves to be withdrawn/ not pressed, the assessee can also write to ITAT.

In case there is appeal of assessee also ( by way of independent Income –tax Appeal (ITA) or by way of Cross Objection (CO). The assessee can request to dismiss the appeal of revenue and press his appeal.

Suitably drafted petitions can be made before ITAT by assessee. An illustrative  draft is appended below:

Letter head of assessee  including PAN/ TAN

              

 Before the Income-tax Appellate Tribunal  “      “ Bench,  ………

Honorable members,

        Regarding Departmental appeal no. ITA No.            and our appeal by way of            

         CO No.              for assessment year     –(Fixed for hearing on … )      

Request for dismissal of appeal of Revenue due to lower

tax effect in view of latest circular no. 21/ 2015, dated 10.12.2015

issued by CBDT.

Kindly refer to paper book already filed.

The learned CIT(A)  considered facts and circumstances of the case and followed binding judgments and allowed us relief. Which has been disputed by the Revenue in the above mentioned Appeal.

In Cross Objections we have taken grounds (nos.    )  to support order of CIT(A) and also for relief on alternate grounds, for the same relief.

In the case, the tax effect on issue disputed by revenue is as follows:

Issue A relief allowed by way of deduction allowed            ₹ 6,00,000/-

Issue B relief allowed by way of deduction allowed            ₹ 4,00,000/-

Total deduction from income allowed by the CIT(A)

Which is disputed by the revenue                                       ₹ 10,00,000/-

Tax effect on the same  including Surcharge and Education

 Cess @ say  34%                                                              ₹ 3,40,000/-                    

The CBDT has vide captioned circular increased minimum amount of tax effect for filing of appeal before ITAT to ₹ 10 lakh with further directions that this limit shall apply to pending appeals also, which may be withdrawn/ not contested by revenue. (Copy of circular is enclosed)

Therefore, we request your honors that the appeal of revenue may not be admitted or may be dismissed in view of the said circular, and as a consequence suitable orders may be passed on the appeal by way of  ITA of revenue and ground nos.  ….. in our CO.

(- /)  In our CO by way of ground nos. …. We have claimed other relief, Appeal on these grounds may be fixed for hearing as soon as possible.

(-/) In our independent appeal being ITA No.  …. Other relief are claimed, the same may be fixed for hearing as  early  as possible.

Thanking you,                                         
         For  Assessee/  Respondent/ Cross Objector/ Appellant .

To be enclosed:

1. Tax calculation sheet provided by the learned  AO with assessment order is enclosed – page nos.   1-  } certified as true copy.
2. Computation of tax effect.
3. Copy of circular no. 21/ 2015, dated 10.12.2015  issued by CBDT -   page nos.  

Copy to:   The Concerned Departmental Representative, ITAT, “   ” Bench, ……… – with request to withdraw the appeal or do not press the same, as per directions of CBDT.