ITO Vs Pioneer Khadan Product Pvt. Ltd (ITAT Kolkata)
On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, it reveals that this circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals as well. Hon’ble apex court in Commissioner of Customs vs. Indian Oil Corporation Ltd reported in 267 ITR 272 (SC) has settled the law that CBDT’s circulars are very much binding on revenue authorities.
The ld. DR has also fairly stated that tax effect involved in appeal is less than the prescribed limit.
In view of above stated position, the appeal of the Revenue is dismissed because of low tax effect than the prescribed limits as per CBDT Circular No. 17/2019 dated 08.08.2019
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal filed by the Revenue is directed against the order dated 13.08.2019 of the Commissioner of Income Tax (Appeals)-5, Kolkata [hereinafter referred to as the ‘CIT(A)].
2. It is seen, at the outset, that the tax effect on the disputed additions before us is less than Rs.50 lacs as the prescribed in the CBDT’s latest Circular No. 17/2019 dated 08.08.2019. It will be pertinent to reproduce the relevant portion of the said Circular as follows:-
“2. As a step toward 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:
