2022 (1) TMI 1035 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - We find that the tax effect involves in the appeal of the Revenue is below ₹ 50 lakhs. There is no dispute that the Board s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of ₹ 50 lakhs. The issue of applicability of the above circular to pending appeals has been decided by the coordinate bench in Dinesh Madhavlal Patel 2019 (8) TMI 752 - ITAT AHMEDABAD . In view of the above, Circular No. 17/2019 dated 08/08/2019 will apply to all pending appeals. Therefore, it is held that the appeal is not maintainable in the instant case as the tax effect is less than ₹ 50 lakhs. Accordingly, it is held that appeal filed by the revenue is not maintainable - Appeal filed by the department is dismissed

Summary

Issues:
- Appeal by Revenue against order of Ld. Commissioner of Income-tax (Appeals)-28, New Delhi for the assessment year 2012-13.
- Applicability of CBDT Circular No. 17/2019 dated 08th August 2019 regarding monetary limit for filing appeals in income-tax cases.
- Decision on the maintainability of the appeal by Revenue due to the tax effect being less than ?50 lakhs.
- Reference to the decision on the applicability of the circular to pending appeals in Dinesh Madhavlal Patel [TS- 469-ITAT-2019(Ahd)]2019-TIOL-1556-ITAT-AHM dated 14th August, 2019.
- Liberty given to Revenue to file miscellaneous application with evidence in cases where instances stated in para No. 10 of CBDT Circular No. 3/2018 dated 11.07.2018 are not discernible.

Analysis:
The appeal before the Appellate Tribunal ITAT DELHI was brought by the Revenue against the order of the Ld. Commissioner of Income-tax (Appeals)-28, New Delhi for the assessment year 2012-13. During the hearing, it was noted that the Revenue did not appear, and the Learned AR highlighted that as per CBDT Circular No. 17/2019 dated 08th August 2019, the revenue would not prefer any appeal before the Tribunal if the tax effect is less than ?50 lakhs. The circular specified enhanced monetary limits for filing appeals in income-tax cases before various appellate authorities. The Tribunal found that the tax effect in the present appeal was below ?50 lakhs, making the appeal non-maintainable as per the CBDT instructions.

The Tribunal referred to the Circular No. 17/2019 dated 08/08/2019, which was deemed applicable to all pending appeals. Consequently, the Tribunal held that the appeal by the Revenue was not maintainable due to the tax effect being less than ?50 lakhs. The decision was in line with the directive provided by the CBDT, making it binding on the Income-tax authorities. Additionally, a reference was made to a prior decision by a coordinate bench in Dinesh Madhavlal Patel [TS- 469-ITAT-2019(Ahd)]2019-TIOL-1556-ITAT-AHM dated 14th August, 2019, regarding the applicability of the circular to pending appeals.

Furthermore, the Tribunal granted liberty to the Revenue to file a miscellaneous application with evidence in cases where instances mentioned in para No. 10 of CBDT Circular No. 3/2018 dated 11.07.2018 were not evident from the assessment and appellate orders. This provision aimed to address situations where specific instances required further clarification or substantiation. Ultimately, the Tribunal dismissed the appeal filed by the department due to the tax effect falling below the prescribed monetary limit, as per the CBDT Circular.