Case Number: ITA 383/DEL/2019
Appellant: DCIT, Circle-12(1), New Delhi
Respondent: ICRA Ltd., New Delhi
Assessment Year: 2015-16
Case Filed On: 2019-01-18
Order Type: Final Tribunal Order
Date of Order: 2019-08-28
Pronounced On: 2019-08-28
The case ITA 383/DEL/2019 involves the appellant, DCIT, Circle-12(1), New Delhi, contesting the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] against ICRA Ltd., New Delhi, for the assessment year 2015-16. The appeal was filed on January 18, 2019, and the final order was pronounced on August 28, 2019. The Income Tax Appellate Tribunal (ITAT) dismissed the appeal due to low tax effect under CBDT Circular No. 17/2019.
The case was heard before the Delhi Bench ‘Friday-A’ of the Income Tax Appellate Tribunal (ITAT), New Delhi. The bench consisted of Shri H.S. Sidhu, Judicial Member, and Shri Anadee Nath Misshra, Accountant Member.
The appeal filed by the DCIT, Circle-12(1), New Delhi, is against the order dated November 20, 2018, passed by the Commissioner of Income Tax (Appeals)-3, New Delhi, for the assessment year 2015-16.
The appellant, represented by Mr. N.K. Bansal, Sr. DR, contended that the tax effect in the case was below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals before the tribunal.
The respondent, represented by Shri Anunav Kumar, AR, and others, argued that the appeal should be dismissed due to the low tax effect, as per the latest CBDT circular.
After hearing the rival contentions and perusing the record, the tribunal referred to the recent CBDT Circular No. 17/2019 dated 08.08.2019. This circular enhanced the monetary limits for filing appeals by the revenue in the Income Tax Appellate Tribunal (ITAT) to Rs. 50,00,000. The tribunal noted that the tax effect involved in this case was below the specified limit.
The relevant CBDT Circular No. 17/2019 dated 08.08.2019, which applies to this case, reads:
“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, 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 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment dated 20th August. 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:
S.No. Appeals/SLPs in IT matters Monetary Limit (Rs.)
- Before Appellate Tribunal 50,00,000/-
- Before High Court 1,00.00.000/-
- Before Supreme Court 2.00.00,000/-
3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed, para 5 of the circular is substituted by the following para:
“5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. 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. 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.
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.”
In view of the CBDT Circular No. 17/2019 and the facts of the case, the tribunal held that the appeal of the revenue was not maintainable due to the low tax effect. Accordingly, the appeal was dismissed without addressing the merits of the case.
The tribunal also clarified that the revenue would be at liberty to approach the Income Tax Appellate Tribunal U/s 254(2) of the Income Tax Act, 1961, seeking partial recall of the order and for restoration of the appeal if it is found that the appeal is not covered by the aforesaid CBDT Circular.
Order pronounced in the open court on August 28, 2019.
Members:
Representatives:
Dated: August 28, 2019.
ITA 383/DEL/2019: DCIT vs. ICRA Ltd. – Case Filed Due to CIT(A) Order
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