TMI Blog2019 (9) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Accordingly, this appeal filed by Revenue is treated as withdrawn / not pressed by Revenue. - ITA No:- 1179/Del/2015 - - - Dated:- 22-8-2019 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER Revenue by: Shri D.S. Rawat, Sr. DR Assessee by: Shri C.P. Jarwal, Employee ORDER PER: ANADEE NATH MISSHRA, AM (A) This appeal by Revenue has been filed against the order of Learned Commissioner of Income Tax (Appeals)-23, New Delhi, [ Ld. CIT(A) , for short], dated 16.12.2014 for Assessment Year 2007-08. The grounds of appeal are as under: On the facts and in the circumstances of the case the Ld. CIT(A) has erred in:- 1. The order of the CIT(A) is not correct in law and facts. 2. On the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals/SLPs in IT matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 50,00,000/- 2. Before High Court 1,00.00.000/- 3. Before Supreme Court 2.00.00,000/- 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing the Departmental appeal in Income Tax Cases be enhanced further and accordingly, the monetary limit for filing the appeal before the Appellate Tribunal have been enhanced to ₹ 50 lakhs through amendment of paragraph 3 of aforesaid Circular No. 3/2018 dated 11.07.2018. Aforesaid Circular No.17/2019 Dated 08.08.2019 has been issued to revise / enhance the monetary limit of tax effect to ₹ 50,00,000/- as compared to the monetary limit of ₹ 20,00,000/- vide CBDT s earlier Circular No. 3/2018 dated 11.7.2018; without, however, in any way amending any other material part of the aforesaid CBDT Circular dated 11.07.2018. More particularly, there is nothing in the aforesaid recent CBDT Circular No. 17/2019 dated 08.08.2019 to infer that direction contained in aforesaid earlier CBDT Circular No. 3 of 2018 dated 11.07.2018 to withdrawn / not press existing appeals (below specified monetary limit of tax effect) already filed by Revenue in ITAT; does not continue to be applicable. Therefore, all the provisions of aforesaid earlier Circular No. 3/2018 dated 11.7.2018 shall apply mutatis mutandis to recent aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 also. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come tax department has further liberalized its policy for not filing appeals against the decisions of the appellate authorities in favour of the taxpayers, wherein tax involved is below certain threshold limits, and announced its policy decision not to file, or press, the appeals, before this Tribunal, against the appellate orders favourable to the assessee in the cases in which overall tax effect, excluding interestexcept when interest itself is in dispute, is ₹ 50,00,000 or less. What it means, in plain words, is that when a Commissioner (Appeals) gives the taxpayer tax relief of upto ₹ 50 lakhs in an appeal in an assessment year, the matter ends there and the relief so granted by the Commissioner (Appeals) cannot be challenged before this Tribunal, that when this Tribunal gives the taxpayer relief of upto ₹ 1 crore in an appeal in an assessment year, the matter ends there and the relief so granted by the Tribunal cannot be challenged before the Hon ble High Court, and that when Hon ble High Court gives relief of upto ₹ 2 crore to the taxpayer in an appeal in an assessment year, that relief cannot be challenged before Hon ble Supreme Court. These monetary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt that the circular must be held to have retrospective application and must equally apply to the pending appeals as well. Shri J P Shah, Senior Advocate, points out that the circular dated 8th August 2019 is not a standalone circular and it is required to be read with the old circular no. 3 of 2018 which is what it seeks to modify. This circular, according to the learned counsel, only enhances the monetary limits and gives further relaxation. He urges us not to read the circular in a manner so as to nullify the underlying approach and object of reducing litigation. Shri Soparkar, learned Senior Advocate, submits that all that the present circular does is to modify the monetary limits and nothing more, and, therefore, it cannot be treated to follow any other approach other than the approach followed in the old circular. The old circular, beyond any dispute or controversy, categorically applied to the pending appeals as on the date of issuance of circular. Shri Tushar Hemani, learned Senior Advocate, points out that the circular dated 8th August 2019 only gives further relief not only in terms of the monetary limits but also in terms of the manner in which the application of circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of litigation. it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly. the table for monetary limits specified in Para 3 of the Circular shall read as follows: S. No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular is substituted by the following para: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (ii) Order dtd. 19/08/2019 of B Bench of ITAT, Delhi, in ITA No. 4497/Del/2016 for A.Y. 2011-12 in the case of ITO vs. M/s BSA Homes Pvt. Ltd. (iii) Order dtd 19/08/2019 of C Bench of ITAT, Delhi in the case of ACIT vs. Isham System (P) Ltd. for A.Y. 2012-13 in ITA No. 4276/Del/2016. (B.2.2) A perusal of the aforesaid recent CBDT Circular dated 08.08.2019 shows that minimum threshold limit of tax effect for filing of Special Leave Petition ( SLP for short) in Hon ble Supreme Court has also been enhanced to ₹ 2,00,000/-. Vide separate orders, each dated 16.08.2019, Hon ble Supreme Court has already dismissed the following SLPs filed by Revenue 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 Hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore 31.10.2019 and a fortnightly report as to progress on withdrawals should be submitted to Board, by 15th 31st of every month. 4. This issues with the approval of the Chairman, CBDT. Encl. as above Yours faithfully, Sd/- (Abhishek Gautam) DCIT (OSD) (ITJ-I), CBDT Tele: 011-23741832 Copy to: 1. Pr. DCIT (L R) for kind information necessary action 2. Database Cell for uploading on irsofficeronline. (B.3) In view of the foregoing discussion, and respectfully following the precedents mentioned in foregoing paragraphs (B.2) , (B.2.1) and (B.2.2) of this order, we are of the firm view 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 11.07.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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