TMI Blog2018 (10) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court finally held that even though the cumulative tax effect in a common order passed by CIT(A) for several years is more than 10 lakhs but if the individual tax effect in each assessment year is less than the monetary limit prescribed in Circular No.3/2011, the same should be held to be not maintainable. - ITA Nos. 1338 And 1340/Bang/2017 - - - Dated:- 12-10-2018 - SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER For The Appellant : Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru For The Respondent : Shri Ravishankar, Advocate ORDER Per N.V. Vasudevan, Judicial Member When these two appeals was taken up for hearing, it was noticed that the tax effect in the appeals for AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he year(s) in which tax effect exceeds the monetary limit prescribed . In case where a composite order/judgement involves more than one assessee, each assessee shall be dealt with separately. 3. She pointed out that the order of the CIT(A) was a common order for AY 2009-10, 2010-11 2011 and the issues were common in all the three AYs and the tax effect in appeal for AY 2010-11 is more than the monetary limit of ₹ 20 lacs and therefore in view of the later portion of para-5 of the Circular shown in bold in the extracted portion of para-5, the appeal should be held to be maintainable for AY 2009-10 2011-12 also. 4. The learned counsel for the Assessee however brought to our notice that para-5 of the CBDT Circular 3/2018 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raphs of Hon ble Karnataka High Court on this issue:- . Per contra, Sri K.V. Aravind, learned counsel for the Appellants refers to para 5 of Circular No. 3/2011, which reads thus:- 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 assessment year or years in which the tax effect is less than the monetary limit specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icle 14 of the Constitution. In the case of a common order passed in respect of one or more assessment year/years, if the tax effect is less than ₹ 10 lakhs, the assessee is not entitled to benefit of exemption and the revenue is not debarred from filing an appeal, even though the tax effect in respect of one or more assessment years is less than ₹ 10 lakhs. In other words, the revenue can file an appeal against all the assessment orders which is a part of the common order, irrespective of the fact, whether for one of the assessment year/years, the tax effect is less than ₹ 10 lakhs. However, if it is a solitary order and tax effect is less than ₹ 10 lakhs, the assessee is entitled to the benefit of exemption and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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