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TMI Blog2019 (9) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... t that this appeal is not maintainable in view of the CBDT's circular No.3/2018 and subsequent amendment thereto dated 8th August, 2019. It was also submitted that under the identical facts, the coordinate bench of this Tribunal vide order dated 14.8.2019 in ITA No.1398/Ahd/2004 and others and in the case of ITO Vs. Dinesh Madhavlal Patel has dismissed the revenue's appeals rejecting the objections of the revenue. 3. Ld. D.R. appealing on behalf of the revenue could not controvert this fact. 4. We have considered the rival submissions and gone through the records. It is noted that in this appeal, the tax effect is below monetary limits of Rs. 50 lakhs as prescribed under the CBDT circular No.3/2018 dated 8th August, 2019 (supra). The coordinate bench of this Tribunal in ITA No.1398/Ahd/2004 and others in the case of ITO Vs. Dinesh Madhavlal Patel (supra) decided the issue by holding as under: "1. These 628 appeals and COs pertain to the appeals are filed by various Assessing Officers, all these appeals call into question correctness of the relief granted to the taxpayers by the Commissioners of Income Tax (Appeals) and, most importantly, the tax effect involved in all these app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00% 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 retrospectively 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factual background and the generous concession by this benevolent CBDT circular, all these appeals must be dismissed as withdrawn and the related cross objections must be dismissed as infructuous.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 that we must deal with. 4. Smt Aparna Agarwal, learned Departmental Representative, however, has a point to make. She points out that the circular dated 8th August 2019 is not clearly retrospective inasmuch as it specifically states in para 4 that "(t)he said modifications shall com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion, 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 that 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 the same lines, arguments are advanced by the learned representatives which, for the sake of brevity and to avoid repetition, we are not referring to in more specific details. In brief rejoinder, learned Departmental Representative graciously leaves the matter to us. 5. Having considered the rival submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 filed 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 the above discussions, we hereby hold that the 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. 8. Learned Commissioner (DR) then submits liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeals and restoration of the appeals in the cases (i) in which it can be demonstrated that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payers. It is indeed an appreciable goodwill gesture by the Government, for so many taxpayers, on the eve of this Independence Day and offering them freedom from the prolonged mental agony and uncertainty of litigation. 11. In the results, all the appeals are dismissed as withdrawn and the cross objections are dismissed as infructuous. Pronounced in the open court today on the 14th August, 2019. 5. Respectfully following the decision of the coordinate bench, we hereby dismiss the above appeal of the revenue in limine without going to the merits of the case. 6. Now coming to the cross objection of the assessee in C.O. No.29/Ind/2019 for the A.Y. 2013-14, the assessee has raised following grounds of cross objection: 1. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in maintaining the disallowance as made by the ld. A.O. ouit of legal expenses of Rs. 1,00,000/- without properly appreciating the facts of the case and submissions made before him. 7. The facts giving rise to the present cross objection are that case of the assessee was picked up for scrutiny assessment and the assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as 't ..... X X X X Extracts X X X X X X X X Extracts X X X X
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