2019 (10) TMI 484 - AT - Income Tax

Maintainability of appeal - monetary amount involved in the appeal - HELD THAT - The tax effect in this appeal is not exceeding the monetary limit as revised by the CBDT vide Circular dated 08.08.2019 for the purpose of filing of appeal by the department before the Income Tax Appellate Tribunal from ₹ 20,00,000/- to ₹ 50,00,000/-. The appeal of the department is not maintainable being monetary limit is less than/not exceeding ₹ 50,00,000/-. Appeal dismissed - decided against Revenue.

Summary

Issues involved:
- Appeal against the order of the ld. CIT(A), Jaipur for the assessment year 2010-11.
- Calculation of tax effect by the AO in relation to relief granted by the ld. CIT (Appeals).
- Monetary limit for filing appeals by the Department before the Income Tax Appellate Tribunal.
- Revisions in the monetary limits for filing appeals by the Department.
- Maintaining the monetary limit for filing appeals based on CBDT Circular No. 17 of 2019.
- Dismissal of the department's appeal due to not meeting the monetary limit.

Analysis:

1. The appeal before the Appellate Tribunal was against the order of the ld. CIT(A), Jaipur for the assessment year 2010-11. The issue revolved around the tax effect calculated by the Assessing Officer concerning the relief granted by the ld. CIT (Appeals). The department challenged this relief, citing that the tax effect was less than ?50,00,000.

2. The Tribunal noted that the tax effect in the appeal did not exceed the revised monetary limit set by the CBDT through Circular No. 17 of 2019. The circular enhanced the monetary limits for filing appeals by the Department before the Income Tax Appellate Tribunal, with the limit raised from ?20,00,000 to ?50,00,000. The Tribunal highlighted the importance of adhering to the revised limits to reduce litigation.

3. The circular outlined specific guidelines for calculating the tax effect separately for each assessment year in cases involving disputed issues. It emphasized that appeals should only be filed for assessment years where the tax effect surpasses the monetary limit. Additionally, in cases of composite orders involving multiple assessment years and common issues, no appeal should be filed if the tax effect is below the monetary limit.

4. The Tribunal concluded that since the tax effect in the department's appeal did not meet or exceed ?50,00,000, the appeal was not maintainable under the revised monetary limits. The department was given the option to file a Miscellaneous Application if the tax effect was found to be higher than ?50,00,000 or if the case fell under any exceptions outlined in the circular.

5. Ultimately, the Tribunal dismissed the department's appeal due to the failure to meet the prescribed monetary limit. The order was pronounced in open court on 22/08/2019, highlighting the significance of adhering to the revised monetary limits set by the CBDT for filing appeals before the Income Tax Appellate Tribunal.

By following the guidelines set forth in Circular No. 17 of 2019, the Tribunal ensured the proper application of monetary limits for filing appeals, thereby streamlining the appeal process and reducing unnecessary litigation.