2019 (5) TMI 1549 - AT - Income Tax

Rectification u/s 254 - Maintainability of appeal - monetary limit - scope of amendment as made in para no. 10 of the Circular No. 3/2018 dated 20.08.2018 - HELD THAT - Appeal of the revenue is dismissed in view of the CBDT Circular No.3/2018 dated 11.07.2018 in which the revenue has been precluded from pursuing its appeal on account of tax effect below 20 lakhs or less. The order was pronounced by Hon ble ITAT 2018 (8) TMI 1812 - ITAT MUMBAI The revenue wanted to recall the matter on the basis of amendment in the CBDT Circular No.3/2018 dated 11.07.2018, which was amendment on dated 20.08.2018. The amendment is not retrospectively, therefore, in the said circumstances, we are of the view that the Hon ble ITAT has decided the appeal of the revenue 2018 (8) TMI 1812 - ITAT MUMBAI Judiciously and correctly which is not liable to be recalled in any manner. Accordingly, the miscellaneous application of the revenue is hereby dismissed.

Summary

Issues:
1. Interpretation of CBDT Circular No.3/2018 dated 11.07.2018.
2. Applicability of the amendment in para no. 10 of the Circular dated 20.08.2018.
3. Recalling an appeal by the revenue.
4. Retrospective effect of the amendment in the circular.

Analysis:
The judgment by the Appellate Tribunal ITAT Mumbai involved the interpretation of CBDT Circular No.3/2018 dated 11.07.2018. The revenue's appeal, ITA. No.1707/M/2018, was initially dismissed based on this circular, which precluded the revenue from pursuing appeals with a tax effect below 20 lakhs. However, an amendment was made in para no. 10 of the Circular on 20.08.2018, specifying exceptions for cases based on information from law enforcement agencies. The Tribunal noted that the circular was not applicable to cases involving external sources like CBI, ED, DRI, SFIO, or DGGI.

The Tribunal thoroughly considered the arguments presented by both parties and examined the record. It was observed that the revenue sought to recall the appeal based on the amendment in the Circular dated 20.08.2018. However, the Tribunal emphasized that the amendment was not retrospective. Consequently, the Tribunal concluded that its earlier decision to dismiss the revenue's appeal on 10.08.2018, in accordance with the original circular, was judicious and correct. Therefore, the Tribunal held that the appeal, ITA. No.1707/M/2018, was not liable to be recalled, and subsequently dismissed the revenue's miscellaneous application.

In conclusion, the Tribunal's decision, delivered on 22/05/2019, reaffirmed the dismissal of the revenue's appeal based on the CBDT Circular No.3/2018 dated 11.07.2018. The judgment clarified the non-retrospective nature of the amendment in the Circular dated 20.08.2018 and upheld the original decision as appropriate and not subject to recall.