ACIT Vs Shri Harish Bhasin (ITAT Delhi)
Conclusion: Revised/enhanced minimum threshold limit of tax effect of Rs. 50 Lakh vide CBDT Circular No. 17/2019, dated 8-8-2019 was applicable not only for appeals to be filed by Revenue in future; but also for appeals already filed by Revenue in ITAT. Therefore, all existing appeals in ITAT, having tax effect below the revised/enhanced limit of Rs. 50,00,000, were to be treated as withdrawn/not pressed; and were, not maintainable.
Held: The issue arose for consideration was whether the revised/enhanced minimum threshold limit of tax effect of Rs. 50, 00, 000 vide CBDT Circular No. 17/2019, dated 8-8-2019 was applicable not only for appeals to be filed by Revenue in future; but also for appeals already filed by Revenue in ITAT. It was held in view of the CBDT Circular No. 17/2019, dated 8-8-2019; the direction in earlier Circular, dated 11-7-2018 to withdraw/not press Revenue’s appeal with tax effect below Rs. 20, 00, 000; was now to be read as direction to withdraw/not press Revenue’s appeal with tax effect below revised/enhanced limit of Rs. 50, 00, 000. Therefore, all existing appeals in ITAT, having tax effect below the revised/enhanced limit of Rs. 50,00,000, were to be treated as withdrawn/not pressed; and were, not maintainable.
FULL TEXT OF THE ITAT JUDGEMENT
(A) The aforementioned appeals by Revenue and Cross Objections by Sahara India Limited are taken up together for the sake of convenience and brevity and these appeals are hereby disposed off through this Consolidated Order; as in all these appeals the tax effect is less than the monetary limit fixed by the CBDT in its Circular No. 17/2019, dated 8-8-2019.
(B) At the outset, at the time of hearing before us, we referred to the recent Central Board of Direct Taxes (“CBDT” for short) Circular No. 17/2019, dated 8-8-2019 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 11-7-2018. In view of the aforesaid CBDT Circular No. 17/2019, dated 8-8-2019; these appeals filed by Revenue are not maintainable and Revenue is required to withdraw/not press those appeals filed by Revenue in which tax effect is below Rs. 50, 00, 000. The learned Authorised Representatives (Chartered Accountants/Advocates) of the respective assessees in these appeals on the respective dates contended that respective appeals filed by Revenue should be dismissed having regard to aforesaid CBDT Circular, dated 8-8-2019. Mr. Anil Kumar Sharma, the learned Senior Departmental Representative (“Ld. Sr. DR”, for short) representing Revenue in these appeals on the respective dates of hearing, accepted, at the time of hearing of these appeals on the respective dates, that the tax effect in the aforementioned appeals filed by Revenue is below Rs. 50, 00, 000 in each of these appeals. He did not oppose the contention of the learned Authorised Representatives of the respective assessees that all these appeals filed by Revenue should be dismissed.
(B.1) The aforesaid CBDT Circular No. 17/2019, dated 8-8-2017 reads as under :–
New Delhi. 8-8-2019
Subject:–Further E0nhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court–Amendment to Circular 3 of 2018–Measures for reducing litigation.–
Reference is invited to the Circular No. 3 of 2018, dated 11-7-2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment, dated 20-8-2018 vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal. High Courts and SLPs/appeals before Supreme Court have been specified. Representation has also been received that an anomaly in the said circular at para 5 may be removed.
2. As a step towards further management of litigation. it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows:–
