2019 (9) TMI 43 - AT - Income Tax

Maintainability of appeal on low tax effect - monetary limit - HELD THAT - Respectfully following the principles laid down by the Hon ble Supreme Court in the case of Commissioner of Income Tax-5, New Delhi Vs. Keshav Power Ltd. 2019 (8) TMI 811 - SC ORDER and in the light of the above discussions all the appeals filed by the Revenue are found to be non-maintainable and as all the related cross-objections of the assessee arise only as a result of those appeals and merely support the order of the CIT(A) the cross objections filed by the assessee are also dismissed as infructuous

Summary

Issues involved:
1. Delay in filing the appeal by the Revenue.
2. Correctness of relief granted to taxpayers by the Commissioners of Income Tax.
3. Tax effect not exceeding ?50,00,000 in each appeal.
4. Cross objections supporting the orders passed by the Commissioner (Appeals).
5. Liberalization of policy for not filing appeals against decisions in favor of taxpayers.
6. Interpretation and application of CBDT circulars regarding monetary limits for filing appeals in income tax cases.
7. Application of circulars to pending appeals and retrospective effect.
8. Judgment by the Hon'ble Supreme Court in a related case.
9. Request for liberty to seek recall of dismissed appeals if covered by exceptions or exceeding monetary limits.

Analysis:
1. The judgment addresses the delay in filing the Revenue's appeal, which was condoned by the Appellate Tribunal due to a request for condonation of delay by the AO and no objection raised by the assessee's counsel. Consequently, the appeal was disposed of on merits.

2. The appeals and cross objections raised questions regarding the relief granted to taxpayers by the Commissioners of Income Tax, with the tax effect not exceeding ?50,00,000 in each appeal. Cross objections were in support of the orders passed by the Commissioner (Appeals).

3. The CBDT circular No.17/2019 liberalized the policy for not filing appeals against decisions favoring taxpayers where the tax effect is below specified threshold limits. The circular aimed to enhance monetary limits for filing appeals in income tax cases.

4. The judgment emphasized the application of the CBDT circulars regarding monetary limits for filing appeals in income tax cases. It highlighted the need to dismiss appeals and related cross objections falling within the specified monetary limits as per the circular.

5. The judgment discussed the interpretation and application of the CBDT circulars, emphasizing the need to read them in conjunction with each other. It clarified the modifications made by the circular dated 8th August 2019 in relation to the previous circular No. 3/2018.

6. The judgment referred to the Hon'ble Supreme Court's decision in a related case where the appeal was dismissed due to the tax effect being below the specified limit as per the CBDT circular. This decision was cited to support the dismissal of appeals in the present case.

7. The judgment allowed the Revenue the liberty to seek recall of dismissed appeals if covered by exceptions or exceeding the monetary limits specified in the CBDT circular. This provision aimed to rectify any errors in including appeals that did not fall within the specified limits.

8. In conclusion, the judgment found all appeals filed by the Revenue to be non-maintainable, leading to their dismissal as withdrawn. The cross objections filed by the assessee were also dismissed as infructuous since they arose as a result of the dismissed appeals.

This detailed analysis covers the various issues addressed in the judgment, providing a comprehensive understanding of the legal aspects involved.