2020 (1) TMI 1013 - AT - Income Tax

Appeal Dismissed Due to Tax Limit Adherence

The Income Tax Officer, Ward-28 (3), Income Tax Office, Delhi Versus Smt. Madhuri Devi

The Department's appeal against the deletion of an addition of Rs. 79,20,000 under section 69 of the I.T. Act, 1961 for the A.Y. 2006-2007 was dismissed ... Maintainability of appeal - low tax effect - HELD THAT:- Admittedly, the tax effect in the Departmental Appeal is less than ₹ 50 lakhs. Vide Circular No.3/2018 Dated 11th July, 2018 issued by CBDT under section 268A of the I.T. Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of ₹ 20 lakhs. It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. CBDT Vide Circular No.17/2019 Dated 08.08.2019 amended the 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 (supra), therefore, all the conditions of earlier Circular No.3/2018 shall apply accordingly. D.R. in view of the above Board’s Circulars did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circulars. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed. Issues:Challenge to deletion of addition under section 69 of the I.T. Act, 1961 based on monetary limits for filing Departmental Appeal.Analysis:The judgment involves a challenge by the Revenue against the deletion of an addition of Rs. 79,20,000 under section 69 of the I.T. Act, 1961 for the A.Y. 2006-2007. The Revenue filed an appeal before the ITAT Delhi against the Order of the Ld. CIT(A)-10, New Delhi. However, it was noted that the tax effect in the Departmental Appeal was less than Rs. 50 lakhs. Referring to Circular No.3/2018 and Circular No.17/2019 issued by the CBDT, it was highlighted that the Department shall not file appeals before the Tribunal where the tax effect does not exceed the monetary limit specified. The Circulars directed that appeals below the specified tax limit may be withdrawn or not pressed by the Department. The monetary limit for filing appeals before the Appellate Tribunal was enhanced to Rs. 50 lakhs through Circular No.17/2019 dated 08.08.2019, amending the earlier Circular No.3/2018.The Ld. D.R., in line with the Board's Circulars, did not press the Departmental Appeal since the case did not fall within the exceptions provided in the Circulars. It was emphasized that the Departmental appeal was not maintainable as it was filed against the Board instructions specified in the Circulars. Consequently, the appeal of the Department was deemed liable to be dismissed. The judgment concluded by dismissing the appeal of the Department, highlighting the adherence to the monetary limits set forth in the CBDT Circulars. The decision was pronounced in the open Court, affirming the dismissal of the Departmental appeal based on the applicable monetary limits as per the Circulars issued by the CBDT.