TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 760
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.... (B) At the outset, at the time of hearing before us, the Bench noticed that tax effect in this appeal is well below Rs. 50,00,000/-. The Bench referred to the recent Central Board of Direct Taxes ("CBDT", for short) Circular No. 17/2019 dated 08.08.2019 in F. No. 279/Misc. 142/2007-ITJ (Pt.) wherein minimum threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate Tribunal ("ITAT", for short) has been enhanced to Rs. 50,00,000/- by revising the earlier CBDT Circular No. 3 of 2018, dated 11.07.2018. The Learned Sr. Departmental Representative ("Ld. Sr. DR", for short) admitted that the tax effect in the present appeal is below Rs. 50,00,000/-. However, he stated that clarification form CBDT is awaited as to whether the revised / enhanced monetary limit of Rs. 50,00,000/- vide aforesaid CBDT Circular dated 08/08/2019 will apply to existing appeals already filed by Revenue in ITAT. (B.1) The aforesaid CBDT circular No. 17/2019 dated 08/08/2017 reads as under: "Circular No. 17/2019 New Delhi. 8th August 2019 Subject: - Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts ....
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....dealt with separately." 4. The said modifications shall come into effect from the date of issue of this Circular. 5. The same may be brought to the notice of all concerned. 6. This issues under section 268A of the Income-tax Act, 1961. 7. Hindi version will follow." (B.1.1) We have noted that vide Circular No. 3/2018 dated 11th July, 2018 issued by CBDT it was not only directed that the Department shall not file appeal before the Tribunal in cases where the tax effect does not exceed the monetary limit of Rs. 20 lakh; but it was also directed that this instruction will apply retrospectively to pending appeals. It was further directed in aforesaid CBDT Circular No. 3/2018 dated 11.07.2018, that the pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. Relevant Portion of the aforesaid Circular No. 3/2018 dated 11.07.2018 is as under: "The Circular will apply to SLPs/appeals/cross objections /references to be filed henceforth in Hon'ble Supreme Court/Tribunal and it shall also apply retrospectively to pending SLPs/appeals/cross objections/references. Pending appeals below the specified tax limits in para 3 above may be withd....
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.... applicable to the pending appeals in addition to the appeals to be filed henceforth. This decision has already been reported in 2019-TIOL-1556-ITAT-AHM, and the relevant portion of the aforesaid order dated 14.08.2019 of 'A' Bench, ITAT, Ahmadabad, contained detailed discussion of the issue, is reproduced as under: "1. These 628 appeals and COs pertain to the appeals are filed by various Assessing Officers, all these appeals call into question correctness of the relief granted to the taxpayers by the Commissioners of Income Tax (Appeals) and, most importantly, the tax effect involved in all these appeals does not exceed Rs. 50,00,000 in each of these appeals. The cross objections taken up for hearing are only such cross objections as emanate from these appeals and are broadly in support of the orders passed by the Commissioner (Appeals). In these cases, in the light of the discussions with the Principal Chief Commissioner of Income Tax (Gujarat) and representatives of the Ahmedabad ITAT Bar Association, individual notices are dispensed with; notices of hearing are given only through the notice board. 2. It is in this backdrop that we are pleased to take note of a very pragma....
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....ions, such an approach is a pleasant departure from legacy practices. 3. In view of the above factual background and the generous concession by this benevolent CBDT circular, all these appeals must be dismissed as withdrawn and the related cross objections must be dismissed as infructuous. There is, however, a small issue that we must deal with. 4. Smt Aparna Agarwal, learned Departmental Representative, however, has a point to make. She points out that the circular dated 8th August 2019 is not clearly retrospective inasmuch as it specifically states in para 4 that "(t)he said modifications shall come into effect from the date of issue of this Circular". It is thus pointed out that this sentence gives an impression that is only after the date of the said circular that the departmental appeals will not be filed in the cases within the specified tax effect limits. We are urged to bear in mind the impact of this observation while giving effect to the circular dated 8th August, 2019. She, however, hastens to add that she is yet to have any specific instructions on the issue and she leaves it for the bench to take the appropriate call. Learned representatives appearing for the tax....
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....al of the appeals covered by the circular. He then points out that it is the old circular is still alive today and the only change is with respect to the monetary limits. In all fairness, therefore, the same approach regarding withdrawal of pending appeals must be followed for this circular as well. On the same lines, arguments are advanced by the learned representatives which, for the sake of brevity and to avoid repetition, we are not referring to in more specific details. In brief rejoinder, learned Departmental Representative graciously leaves the matter to us. 5. Having considered the rival submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now. Our line of reasoning is this. The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular. This is evident from the following ext....
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....ces. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed. 7. In view of the above discussions, we hereby hold that the relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8th August 2019 (supra) shall be applicable to the pending appeals in addition to the appeals to be filed henceforth." (B.2.1) Moreover, in the following precedents, Co-ordinate Benches of Income Tax Appellate Tribunal, Delhi; have already taken the view that the aforesaid CBDT Circular no. 17/2019 dated 08.08.2019 shall also apply retrospectively to pending appeals: (i) Order dtd. 19/08/2019 of "F" Bench of ITAT, Delhi in ITA Nos.- 5136 & 5137/Del/2016 for A.Y. 2009-10 & 2010-11 in the case of ACIT vs. Prateek Buildtech India P. Ltd. (ii) Order dtd. 19/08/2019 of "B" Bench of ITAT, Delhi, in ITA No. 4497/Del/2016 for A.Y. 2011-12 in the case of ITO vs. M/s BSA Homes Pvt. Ltd. (iii) Order dtd 19/08/2019 of "C" Bench of ITAT, Delhi in the case of ACIT vs. Isham System (P) Ltd. for A.Y. 2012-13 in ITA No.- 4276/Del/2016. (B.2.2) A perusal of the aforesaid recent CBDT Circular dated 08.08.2019 shows that minimum threshold limit of ta....
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....ry limits as mentioned in the table there in and all other paras, except para 5 of Circular 3, relating to composite orders shall be applicable in toto. 3. Therefore, it is clear that the revised monetary limits so mentioned in circular 17/2019 is applicable, to all pending SLPs/appeals/cross objections/references. All such pending appeals within the revised limits shall be withdrawn on or before 31.10.2019 and a fortnightly report as to progress on withdrawals should be submitted to Board, by 15th & 31st of every month. 4. This issues with the approval of the Chairman, CBDT. Encl. as above Yours faithfully, Sd/- (Abhishek Gautam) DCIT (OSD) (ITJ-I), CBDT Tele: 011-23741832 Copy to: 1. Pr. DCIT (L&R) for kind information & necessary action 2. Database Cell for uploading on irsofficeronline." (B.3) In view of the foregoing discussion, and respectfully following the precedents mentioned in foregoing paragraphs (B.2) , (B.2.1) and (B.2.2) of this order, we are of the firm view that the revised / enhanced minimum threshold limit of tax effect of Rs. 50,00,000/- vide aforesaid recent CBDT Circular No. 17/2019 dated 08.08.2019 is applicable not only for appeals....