TMI Blog2019 (9) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... evised / enhanced limit of ₹ 50,00,000/-, are to be treated as withdrawn / not pressed; and are, not maintainable. 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.CBDT Circulars and Instructions, which are beneficial for assessee, are binding on the authorities below. Accordingly, these appeals filed by Revenue are treated as withdrawn / not pressed by Revenue. - ITA No:- 5793/Del/2016, ITA No:- 5439/Del/2016, ITA No:- 5800/Del/2016, ITA No:- 5801/Del/2016, ITA No:- 3696/Del/2016, ITA No:- 3697/Del/2016 - - - Dated:- 5-9-2019 - Shri Amit Shukla, Judicial Member And Shri Anadee Nath Misshra, Accountant Member For the Assessee : Shri Ajay Bhagwani, CA, Shri Sparsh Bhargava, Adv. And Ms. Ishita Farsaiya, Adv. For the Revenue : Shri Janardan Das, Sr. DR CONSOLIDATED ORDER PER BENCH (A) The above captioned appeals by Revenue are taken up together for the sake of convenience and brevity and these appeals are hereby disposed off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) of ₹ 34,85,759/- ignoring the facts of the case that the original order was not set aside in toto but only on a limited issue. 3. Whether on the facts and circumstances of the case the Ld. CIT(A) is correct in deleting the penalty u/s 271(1)(c) of ₹ 34,85,759/- ignoring the fact that the addition as made in the original order which were not subject to direction issued u/s 263 of the Act. 4. Whether on the facts and circumstances of the case the Ld. CIT(A) is correct in deleting the penalty u/s 271(1)(c) of ₹ 34,85,759/- ignoring the fact the Assessing Officer deciding the matter in consequence of the order u/s 263 of the Act did not have the jurisdiction to reexamine the addition made in the original order u/s 143(3) / 153A and therefore did not have jurisdiction to reconsider/redecide on the initiation of penalty made in original assessment order u/s 143(3)/153A of the Act. 5. Whether on the facts and circumstances of the case the Ld. CIT(A) is correct in deleting the penalty u/s 271(1)(c) of ₹ 34,85,759/- ignoring the fact the penalty so imposed by the AO is in consequence of the assessee s appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 50,00,000. The learned Authorized Representatives (Chartered Accountants / Advocates) of the respective assessees in these appeals contended that respective appeals filed by Revenue should be dismissed having regard to aforesaid CBDT Circular dated 08.08.2019. Shri Janardan Das, the learned Senior Departmental Representative ( Ld. Sr. DR , for short) representing Revenue in all these appeals on the date of hearing, accepted, at the time of hearing of these appeals, that the tax effect in the aforementioned appeals filed by Revenue is below ₹ 50,00,000/- in each of these appeals. He did not oppose the contention of the learned Authorized Representatives of the respective assessees that all these appeals filed by Revenue should be dismissed. (B.1) The aforesaid CBDT circular No. 17/2019 dated 08/08/2017 reads as under: Circular No. 17/2019 New ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect 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. (B.1.1) We have noted that vide Circular No. 3/2018 dated 11th July, 2018 issued by CBDT it was not only directed that the Department shall not file appeal before the Tribunal in cases where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be read as direction to withdraw /not press Revenue s appeal with tax effect below revised / enhanced limit of ₹ 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, and the relevant portion of the aforesaid order dated 14.08.2019 of A Bench, ITAT, Ahmadabad: containing detailed discussion of the issue, is reproduced as under: 1. These 628 appeals and Cos pertain to the appeals are filed by va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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 this benevolent CBDT circular, all these appeals must be dismissed as withdrawn and the related cross objections must be dismissed as infructuous. There is. however, a small issue tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion 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 respect to the monetary limits. In all fairness, therefore, the same approach regarding withdrawal of pending appeals must be followed for this circular as well. On th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very assessee. If in the case of an assessee, the disputed issueds arise in more than one assessment year, appeal can be filed in respec of such assessmen tyear or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No appeal shall he 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 shal be dealt with separately 4. The said modifications shall come into effect from 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 a follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e earlier; since the tax effect involved in each of these cases was less than ₹ 2,00,000/-: (i) Special Leave Petition (Civil) Diary 25086/2019 in the case of CIT v/s M/s Hongkong and Shanghai Banking Corporation Ltd. (Arising out of impugned final judgment and order dated 06-02-2019 in ITA No. 1650/2016 passed by the High Court of Judicature at Bombay) (ii) Special Leave Petition (Civil) Dairy No. 26373/2019 in the case of DCIT vs. EB Holding Company Ltd. (Arising 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) Mor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in foregoing paragraphs (B.2), (B.2.1) and (B.2.2) of this order; and, in view of the aforesaid clarification issued by CBDT and mentioned in foregoing paragraph (B.2.3) of this order; we hold that the revised / enhanced minimum threshold limit of tax effect of ₹ 50,00,000/- vide aforesaid recent CBDT Circular No. 17/2019 dated 08.08.2019 is applicable not only for appeals to be filed by Revenue in future; but also for appeals already filed by Revenue in ITAT. Accordingly, in view of the aforesaid recent CBDT Circular No. 17/2019 dated 08/08/2019; the direction in aforesaid earlier Circular dated 11.07.2018 to withdraw /not press Revenue s appeal with tax effect below ₹ 20,00,000/-; is now to be read as direction to withdraw / not press Revenue s appeal with tax effect below revised / enhanced limit of ₹ 50,00,000/-. By necessary implication, therefore, all existing appeals in ITAT, having tax effect below the revised / enhanced limit of ₹ 50,00,000/-, are to be treated 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 I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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