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TMI Blog2019 (9) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... Rajeev Jain, D.R. For the Respondent : Shri N. Agrawal, A.R. ORDER PER KUL BHARAT, J.M: This appeal by the revenue pertaining to the assessment year 2012-13 against order of the CIT(A)-II, Indore dated 1.8.2017. The revenue has raised following grounds of appeal: 1. Whether on the facts and in the circumstances of the case the Ld. CIT(A) is justified in deleting the disallowance of interest of ₹ 81,02,506/- which was made as the assessee had used interest bearing funds for advancing the same to associate concerns without charging any interest. 2. Whether on the facts and in the circumstances of the case the Ld. CIT(A) is justified in deleting the disallowance of ₹ 1,62,000/- made u/s 14A of the I.T. Act, 1961. 2. At the outset, Ld. Counsel for the assessee pointed out that this appeal is not maintainable in view of the CBDT s circular No.3/2018 and subsequent amendment thereto dated 8th August, 2019. It was also submitted that under the identical facts, the coordinate bench of this Tribunal vide order dated 14.8.2019 in ITA No.1398/Ahd/2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter ends there and the relief so granted by the Commissioner (Appeals) cannot be challenged before this Tribunal, that when this Tribunal gives the taxpayer relief of upto ₹ 1 crore in an appeal in an assessment year, the matter ends there and the relief so granted by the Tribunal cannot be challenged before the Hon ble High Court, and that when Hon ble High Court gives relief of upto ₹ 2 crore to the taxpayer in an appeal in an assessment year, that relief cannot be challenged before Hon ble Supreme Court. These monetary threshold limits for filing of appeals by the income tax authorities do not take into account interest and other corollaries of the tax demands being confirmed such as penalties, except when a penalty itself is subject matter of litigation, and prosecutions. The enhancement of these monetary limits is at an unprecedented scale. The monetary limit for appeals before this Tribunal, which was ₹ 3,00,000 till 10th July 2014, has been in effect enhanced to almost 1,700% in the last five years. This substantial relaxation is certainly a huge step which signifies trust reposed by the Government of India in the decisions of the appellate forums, and su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does is to modify the monetary limits and nothing more, and, therefore, it cannot be treated to follow any other approach other than the approach followed in the old circular. The old circular, beyond any dispute or controversy, categorically applied to the pending appeals as on the date of issuance of circular. Shri Tushar Hemani, learned Senior Advocate, points out that the circular dated 8th August 2019 only gives further relief not only in terms of the monetary limits but also in terms of the manner in which the application of circular to orders dealing with more than one year is to made. Shri S N Divetia, learned counsel for the assessee, submits that unlike in the cases of earlier CBDT circulars, which used to be in supersession of earlier circulars on the issues, the circular dated 8th August 2019 only modifies the earlier circular which, inter alia, provided for its retrospective application. Our attention is invited to some judicial precedents in support of the contention that the benevolent circular, such as the one in question, is to be given effect in respect of the pending appeals as well. Ms Urvashi Shodhan, learned counsel for the assessee, points outs that its plai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular is substituted by the following para: 5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. Noappeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Ordered, accordingly. 10. As we part with the matter, we must place on record our deep appreciation to our own team which has painstakingly identified all these low tax effect appeals in the long weekend and less than two working days, to the Principal Chief Commissioner of Income Tax Gujarat, as also the learned Departmental Representatives, for his immense help, cooperation and active involvement in speedily disposing of these appeals, and, of course, to the ITAT Bar Association Ahmedabad for their whole hearted cooperation in this special drive. The circular was issued on Thursday the 8th August 2019, and within two working days and the long weekend, today on 14th August 2019, all the appeals stand disposed of. It s only a team effort and whole hearted cooperation of all the stakeholders that can enable us to so speedily implement taxpayer friendly initiatives of the Government of India.The taxpayer relief involved in these appeals, includin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akh. 9. Aggrieved against this, both revenue and the assessee had preferred appeal and cross objection respectively. The appeal of the revenue was dismissed on account of low tax effect. The cross objection of the assessee remained to be adjudicated. The solitary ground in the present cross objection is related to sustaining the addition of ₹ 1 lakh made on account of disallowance of the legal expenses. Ld. Counsel for the assessee submitted that the A.O. had disallowed the expenditure for want of relevant evidences. He submitted that relevant evidences were misplaced and now the evidences have been traced. Therefore, it was prayed that the addition made by the A.O. may be deleted. 10. Ld. D.R. opposed the submissions and supported the orders of the authorities below. 11. We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The assessee has placed evidences in support of his claim of expenditure related to proceedings in the Debts Recovery Tribunal (DRT). Considering the evidences so placed, the amount was spent o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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