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TMI Blog2019 (6) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... This is an appeal filed by the Revenue against the order dated 2.1.2018 of learned Commissioner of Income Tax (Appeals), Patiala [(in short CIT(A )] The assessee has filed Cross Objection against the same. 2. During the course of hearing, learned counsel for the assessee, at the very outset, stated that the appeals filed by the department are not maintainable in view of Circular No.3/2018 dated 11.7.2018 issued by the CBDT wherein the monetary limit for tax effect for filing the appeal before the ITAT has been increased to ₹ 20 lakhs. 3. The ld.CIT DR, submitted that Circular No.3/2018 is not a blanket bar on filing of appeals before ITAT and para 10 details the exceptions to file the appeal where tax effect is less than ₹ 20 lakhs and also clarifies that in cases where tax effect is less than ₹ 20 lakhs or where tax effect cannot be quantified as in the case of Registration u/s 12AA, the monetary limit would not be applicable. It was further submitted that the aforesaid circular No.3/18 has been amended vide letter F.No.279/Misc.142/2007-ITJ(Pt) dated 20th July, 2018 as under:- (a) where the Constitutional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20,00,000/- 2 Before High Court 50,00,000/- 3 Before Supreme Court 1,00,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. 4. For this purpose, tax effect means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (hereinafter referred to as disputed issues). Further, tax effect shall be tax including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions contained in section 115JB or section 1I5JCwas reduced by the amount of disputed issues under the said provisions: However, where the amount of disputed issues is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D. 7. In a case where appeal before a Tribunal or a Court is not filed only on account of the tax effect being less than the monetary limit specified above, the Pr. Commissioner of Income-tax/ Commissioner of Income Tax shall specifically record that even though the decision is not acceptable, appeal is not being filed only on the consideration that the tax effect is less than the monetary limit specified in this Circular . Further, in such cases, there will be no presumption that the Income-tax Department has acquiesced in the decision on the disputed issues. The Income-tax Department shall not be precluded from filing an appeal against the disputed issues in the case of the same assessee for any other assessment year, or in the case of any other assessee for the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. The monetary limits specified in para 3 above shall not apply to writ matters and Direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute and rules. Further, in cases where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12A/ 12AA of the IT Act, 1961 etc., filing of appeal shall not be governed by the limits specified in para 3 above and decision to file appeals in such cases may be taken on merits of a particular case. 12. It is clarified that the monetary limit of ₹ 20 lakhs for filing appeals before the ITAT would apply equally to cross objections under section 253(4) of the Act. Cross objections below this monetary limit, already filed, should be pursued for dismissal as withdrawn/ not pressed. Filing of cross objections below the monetary limit may not be considered henceforth. Similarly, references to High Courts and SLPs/ appeals before Supreme Court below the monetary limit of ₹ 50 lakhs and ₹ 1 Crore respectively should be pursued for dismissal as wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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