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TMI Blog2015 (12) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... h; notices only through the notice board. 2. It is in this background that we need to take note of a very pragmatic initiative, taken by the Central Board of Direct Taxes last week, for reducing litigation in direct taxes. Vide circular no. 21/ 2015 dated 10th December 2015, the Central Board of Direct Taxes has, inter alia, announced that, subject to certain exceptions- which are not relevant in the present context, henceforth, no departmental appeals will be filed against relief given by the CIT(A), before this Tribunal, unless the tax effect, excluding interest, exceeds Rs. 10,00,000. What is even more important is that not only that such a taxpayer friendly measure will be implemented in all future tax litigation, even the pending appeals, wherever the tax involved in the appeals does not exceed Rs. 10,00,000, shall not be pressed or withdrawn. In effect thus, irrespective of the year to which the departmental appeal before the Tribunal pertains, as long as such an appeal is pending before the Tribunal, this will be a legal nullity. The relevant extracts of the aforesaid circular are as follows: 3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed. In case where a composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately. 3. So far as retrospective operation of this measure is concerned, the relevant portion of the CBDT circular is as follows: 10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed........ 4. It is in this backdrop that the we proposed to fix all these appeals for hearing and put the learned Departmental Representative to notice as to why all these appeals not be dismissed as non maintainable in the light of the circular no. 21/2015 dated 10th December, 2015. However, in all fairness to the revenue authorities, this proposal was subject to following conditions to safeguard their legitimate interests: (a) In terms of paragraph 6 and 7 of the said circular, this dismissal will be without any prejudice to the rights of the revenue authorities to raise the same issue, in the case of the relevant assessee or any other assessee, as and when the tax effect involved in such litigation crosses t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular which states as follows: 8. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule are under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts. 5. Shri Pipara, learned counsel for the assessee, took us through the CBDT circular to demonstrate as to how, in the light of this CBDT circular, the appeal should be dismissed as withdrawn. Learned Departmental Representative very fairly did not oppose the action proposed by this Tribunal, in principle, but has requested that the legitimate interests of the revenue authorities be suitably protected so as the appeals which are ultimately found to be not covered by the provisions of the aforesaid circular are reinstated and decided on merits. He also submits th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te interests of the revenue. The liberty is, therefore, specifically granted to the Assessing Officers to approach this Tribunal in case there are any cases, inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs. 10,00,000, so that the related appeals can be recalled for adjudication on merits. 7. In view of the above discussions, as also bearing in mind entirety of the case, we deem it fit and proper to dismiss all these appeals as non maintainable. Without any prejudice to the generalities of the legal rights of both the parties, this dismissal is specifically subject to the liberty granted to the revenue authorities in terms of the assurances in the paragraphs 4 and 6 above. 8. We have also noted that in seven of the cases, as a result of the appeals having been filed by the revenue, the assessees have also filed the cross objections. However, the right to file a cross objection arises only when the appeal filed by the other party is admitted, and, in a situation in which the appeal itself is held to non maintainable, the very foundation for the cross objection ceases to hold good in law. As the appeals are f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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