TaxTMI 
TaxTMI 
2019 (9) TMI 904
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....s : Ms/S/Shri Narendra Sharma, Advocate, Prashanth G.S, C.A, V Chandrashekar, Advocate, Rakesh C.R, C.A, Kashinath, Advocate ORDER PER BENCH: These are appeals by the revenue and are directed against the respective orders of the CIT(Appeals). 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. In these cases, individual notices to the Assessees are dispensed with; notices of hearing are given only through the notice board to the Assessees and the office of the DR was given notice of list of these appeals. 2. In the light of the CBDT Circular dated 8.8.2019, all these appeals of the Revenue have to be dismissed, as the tax effect involved in the quantum in dispute in all these appeals are less than Rs. 50 lacs. Though the DR attempted to point out that some clarifications are required on some of the appeals to find out the tax effect, yet we are of the view that if liberty is given to the Revenue to point out, upon necessary further verifications, and to seek recall the order....
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.... 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 Rs. 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 substantially cuts down time taken in the finality of the appellate process. It is indeed heartening to note that in one stroke, the Government has not only prevented, but has, in effect, set the stage for withdrawal of thousands of appeals before this Tribunal and before Hon'ble Courts above. In an environment in which retrospectivity was attached only to the taxation and not to tax reliefs or concessions, 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 circul....
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....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 plainly contrary to the scheme of the litigation policy of the Government of India to give this circular only prospective effect. Shri S K Sadhwani, learned counsel for the assessee, invites our attention to the letter dated 16th July 2018 issued by Member CBDT to the all the Principal Chief Commissioners of Income Tax, in the context of circular dated 11th July 2018 that the present circular seeks to modify, seeking report on withdrawal 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....
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....t is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year no appeal 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. In case where a composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately" 4. The said modifications shall come into effect from the date of issue of this Circular." 6. Clearly, all other portions of the circular no. 3 of 2018 (supra) have remained intact. The portion which has remained intact includes paragraph 13 of the aforesaid circular which is as follows: "13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. 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 limit....