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TMI Blog2019 (9) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... and Shri Hardeep Singh, CA And Shri Deepesh Garg, Adv CONSOLIDATED ORDER Per Anadee Nath Misshra, AM (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 08.08.2019. (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 08.08.2019 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 11.07.2018. In view of the aforesaid CBDT Circular No. 17/2019 dated 08.08.2019; 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 Authorized Representatives (C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Circular No. 17/2019 dated 08.08.2019 also. Accordingly, the direction in aforesaid earlier Circular dated 11.07.2018 to withdraw / not press Revenue's appeal with tax effect below Rs. 20, 00, 000/-; in view of recent aforesaid Circular dated 08.08.2019; is 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/-. (B.2) For our aforesaid view expressed in the foregoing paragraph (B.1.2) of this order; we take strength from a recent precedent in the case of Income Tax Officer, Ward 3(2), Ahmadabad vs. Dinesh Madhavlal Patelin (ITA No.- 1398/Ahd/2004 for Assessment Year 1998-99), and 627 others; in which, vide order dated 14.08.2019, of 'A' Bench of Income Tax Appellate Tribunal, Ahmadabad [ Coram: Justice P P Bhatt, President, and Sri Pramod Kumar, Vice President] it was held, at paragraph 7 of the aforesaid order dated 14/08/2019, that relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8th August 2019 (supra) shall be applicable to the pending appeals in addition to the appeals to be filed henceforth. This decision has already been reported in 2019-TIOL-1556-ITAT-AHM, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old limits for filing of appeals by the income tax authorities do not take into account interest and other corollaries of the tax demands being confirmed such as penalties, except when a penalty itself is subject matter of litigation, and prosecutions. The enhancement of these monetary limits is at an unprecedented scale. The monetary limit for appeals before this Tribunal, which was Rs. 3, 00, 000 till 10th July 2014, has been in effect enhanced to almost 1, 700% in the last five years. This substantial relaxation is certainly a huge step which signifies trust reposed by the Government of India in the decisions of the appellate forums, and substantially cuts down time taken in the finality of the appellate process. It is indeed heartening to note that in one stroke, the Government has not only prevented, but has. in effect, set the stage for withdrawal of thousands of appeals before this Tribunal and before Hon'ble Courts above. In an environment in which retrospectivity was attached only to the taxation and not to tax reliefs or concessions, such an approach is a pleasant departure from legacy practices. 3. In view of the above factual background and the generous concession by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re than one year is to made. Shri S N Divetia, learned counsel for the assessee, submits that unlike in the cases of earlier CBDT circulars, which used to be in supersession of earlier circulars on the issues, the circular dated 8th August 2019 only modifies the earlier circular which, inter alia, provided for its retrospective application. Our attention is invited to some judicial precedents in support of the contention that the benevolent circular, such as the one in question, is to be given effect in respect of the pending appeals as well. Ms Urvashi Shodhan. learned counsel for the assessee, points outs that its plainly contrary to the scheme of the litigation policy of the Government of India to give this circular only prospective effect. Shri S K Sadhwani, learned counsel for the assessee, invites our attention to the letter dated 16th July 2018 issued by Member CBDT to the all the Principal Chief Commissioners of Income Tax, in the context of circular dated 11th July 2018 that the present circular seeks to modify, seeking report on withdrawal of the appeals covered by the circular. He then points out tMt it is the old circular is still alive today and the only change is with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fi led 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 fi led 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 f rom the date of issue of this Circular. 6. Clearly, all other portions of the circular no. 3 of 2018 (supra) have remained intact. The portion which has remained intact includes paragraph 13 of the aforesaid circular which is as follows: 13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be fi led henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed. 7. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ising out of impugned final judgment and order dated 25-01-2019 in WP No. 3642/2018 passed by the High Court of Judicature at Bombay) (iii) Special Leave Petition (Civil) Diary No. 21497/2019 in the case of Pr. CIT vs. Keshav Power Ltd. (Arising out of impugned final judgment and order dated 07-09-2018 in ITA No. 277/2018 passed by the High Court of Delhi at New Delhi) (iv) Special Leave Petition (Civil) Diary No. 25076/2019 in the case of Pr. CIT vs. Meenakshi Modi. (Arising out of impugned final judgment and order dated 24-01-2019 in DBITA No. 156/2018 passed by the High Court of Judicature for Rajasthan at Jodhpur) (B.2.3) Moreover, vide F. No. 279/Misc/M-93/2018-ITJ, dated 20th August, 2019; clarification has been issued by CBDT that revised monetary Limits mentioned in Circular No. 17/2019 is applicable to all pending SLPs / appeals / cross objections / references. It reads as under: "F. No. 279/Misc/M-93/2018-ITJ Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ********** Room No. 12, 5th Floor, Jeevanvihar Building, Parliament Street, New Delhi. Dated the 20th August, 2019. To, All Pr. Chief Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as withdrawn / not pressed; and are, not maintainable. We also hold, in view of the foregoing, that the relaxation in monetary limits for filing of appeals by Revenue in ITAT, vide aforesaid CBDT Circular dated 08.08.2019 shall be applicable also to the pending appeals in ITAT already filed by Revenue. It is well settled that CBDT Circulars and Instructions, which are beneficial for assessee, are binding on the authorities below. Accordingly, these appeals filed by Revenue are held to be not maintainable, and are treated as withdrawn / not pressed by Revenue; and are, accordingly dismissed in view of aforesaid CBDT Circular dated 08.08.2019. We clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking partial recall of this order and, for restoration of such appeal(s), if any, in which it is found that appeal(s) of Revenue is / are not covered by aforesaid CBDT Circular dated 08.08.2019. This decision was orally pronounced in Open Court after conclusion of hearings on the respective dates. (C) Learned Counsel for the Assessee in the cases of Sahara India Ltd. did not press Cross Objections vide CO Numbers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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