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2019 (9) TMI 164 - AT - Income TaxMonetary limit - low tax effect - HELD THAT - Recently, the CBDT vide Circular No.17/2019 Dated 08.08.2019 amended its earlier Circular No.3/2018 (Supra) whereby it has been directed that monetary limit for filing the Departmental appeal in Income Tax Cases may be enhanced further through this amendment in para-3 of the Circular mentioned above and accordingly, the monetary limit for filing the appeal before the Appellate Tribunal have been enhanced to ₹ 50 lakhs. Since Circular No.17/2019 Dated 08.08.2019 have been issued to amend its earlier Circular No.3/2018 dated 11.7.2018 (Supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly. This view is supported by the ITAT, Ahemedabad A Bench decision passed in the case of Income Tax Officer, Ward 3(2), Ahmedabad vs. Dinesh Madhvlal Patel and 627 others passed in 2019 (8) TMI 752 - ITAT AHMEDABAD CIT(DR) did not controvert the aforesaid proposition. - Decided against revenue.
Issues:
- Applicability of monetary limit for filing Departmental Appeals in Income Tax Cases as per CBDT Circulars. Analysis: The judgment by the Appellate Tribunal ITAT Delhi involved the issue of the applicability of the monetary limit for filing Departmental Appeals in Income Tax Cases as per CBDT Circulars. The Tribunal noted that the tax effect in the Departmental Appeals was less than ?50 Lakhs, falling within the enhanced monetary limit set by the CBDT Circular No.17/2019. The Circular directed that appeals with tax effect below the specified limit should not be filed before the Tribunal. The Tribunal referenced Circular No.3/2018, which set the initial monetary limit at ?20 lakhs, and highlighted that Circular No.17/2019 amended the earlier circular to increase the limit to ?50 lakhs. The Tribunal cited a decision by the ITAT, Ahmedabad 'A' Bench, in support of this view. The Legal Counsel for the Department did not contest the proposition regarding the applicability of the monetary limit for filing Departmental Appeals in Income Tax Cases as per the CBDT Circulars. Considering the facts, circumstances, and the relevant CBDT Circulars, along with the decision of the ITAT, Ahmedabad 'A' Bench, the Tribunal dismissed all seven appeals filed by the Department. The Tribunal's decision was in line with the directives provided in the CBDT Circulars, particularly Circular No.17/2019, which increased the monetary limit for filing appeals before the Appellate Tribunal to ?50 lakhs. As a result, the Tribunal upheld the dismissal of all seven appeals by the Department. In conclusion, the judgment by the Appellate Tribunal ITAT Delhi centered on the interpretation and application of the monetary limit for filing Departmental Appeals in Income Tax Cases as per the CBDT Circulars. The Tribunal's decision to dismiss the appeals was based on the compliance with Circular No.17/2019, which increased the monetary limit to ?50 lakhs, and the supporting decision of the ITAT, Ahmedabad 'A' Bench. The Tribunal's ruling aligned with the directives provided by the CBDT Circulars, emphasizing the importance of adhering to the specified monetary limits for filing appeals before the Appellate Tribunal in Income Tax Cases.
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