TMI Blog2019 (10) TMI 1119X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 Accordingly, this appeal filed by Revenue is held to be not maintainable, and is treated as withdrawn / not pressed by Revenue; and is, accordingly dismissed in view of aforesaid CBDT Circular dated 08.08.2019.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 recall of this order and, for restoration of appeal, if it is found that appeal of Revenue is not covered by aforesaid CBDT Circular dated 08.08.2019. - ITA No:- 5084/Del/2015, C.O. No.-364/Del/2015 (Assessment Year: 2010-11, 2009-10) - - - Dated:- 9-9-2019 - SHRI K.N. CHARY, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER Revenue by: Ms. Rachna Singh, CIT (DR) Assessee by: Shri Nippun Mittal, CA CONSOLIDATED ORDER Per Anad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Rachana Singh, CIT(DR), the learned Commissioner of Income Tax (Departmental Representative) [ Ld. CIT(DR) , for short] representing Revenue in this appeal accepted, at the time of hearing of this appeal, that the tax effect in the aforementioned appeal filed by Revenue is below ₹ 50,00,000/-. She did not oppose the contention of the learned Authorized Representative of the assessee that this appeal 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 Delhi. 8th August 2019 Subject: - Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation.- Reference is invited to the Circular No.3 of2018 dated 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment dated 20th August. 2018 vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the tax effect does not exceed the monetary limit of ₹ 20 lakh; but it was also directed that this instruction will apply retrospectively to pending appeals. It was further directed in aforesaid CBDT Circular No. 3/2018 dated 11.07.2018, that the pending appeals below the specified tax limit may be withdrawn/not pressed by the Department. Relevant Portion of the aforesaid Circular No. 3/2018 dated 11.07.2018 is as under: The Circular will apply to SLPs/appeals/cross objections /references to be filed henceforth in Hon'ble Supreme Court/Tribunal and it shall also ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 various Assessing Officer, all these appeals call into question correctness of the relief granted to the taxpayers by the Commissioner of Income Tax (Appeals) and, most importantly, the tax effect involved in all these appeals does not exceed ₹ 50,00,000 in each of these appeals. The cross objections taken up for hearing are only such cross objections as emanate from these appeals and are broadly in support of the orders passed by the Commissioner (Appeals). In these cases, in the light of the discussions with the Principal Chief Commissioner of Income Tax (Gujarat) and representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 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 come into effect from the date of issue of this Circular . It is thus pointed out that this sentence gives an impression that is only after the date of the said circular that the departmental appeals will not be filed in the cases within the specified tax effect limits. We are urged to bear in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adhwani, 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 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 submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/2019 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 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 held to be not maintainable, and is treated as withdrawn / not pressed by Revenue; and is, accordingly dismissed in view of aforesaid CBDT Circular dated 08.08.2019. We clarify that Revenue will be at liberty to approach Income Tax Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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