Income Tax Appellate Tribunal - Allahabad
Acit, Range-1, Gorakhpur vs Sri Awadhesh Kumar Srivastava, ... on 29 August, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
VARANASI CIRCUIT BENCH, VARANASI
BEFORE SHRI. A. D. JAIN, VICE PRESIDENT
AND T. S. KAPOOR, ACCOUNTANT MEMBER
Sr. Appeal No. Asstt. Appellant Respondent Assessee by
No. Year
1 ITA No. 2005-2006 A.C.I.T., C.C., Shri Lalit Kumar Barnwal, Shri A. K. Thukral,
164/A/2011 Varanasi C/o M/s Pee Woolen CA
Mills, Main Road,
Bhadohi.
PAN - ACEPB0726A
2.. ITA No. 2009-2010 I.T.O., Ward - 2(3), M/s Amrish Kumar Shri Aprameya M.
139/A/2012 Varanasi Gupta, Arun Kumar Gabhawala, CA
Gupta & Ambuj Kumar
Gupta, N-1/60, Nagwa,
Lanka, Varanasi.
PAN - AAOFA7702K
3 CO No. M/s Amrish Kumar I.T.O., Ward - 2(3),
02/Vns/2018 Gupta, Arun Kumar Varanasi
(In ITA No. Gupta & Ambuj
139/A/2012) Kumar Gupta, N-
1/60, Nagwa,
Lanka, Varanasi.
PAN -AAOFA7702K
4 ITA No. 2010-2011 A.C.I.T., C.C., M/s Suvidha Hi-tech Shri Satyam
398/A/2012 Varanasi Diagnostic Centre Pvt. Agrawal, CA
Ltd.,
D-27/90, ground Floor,
Shakambari Complex,
Durgakund Road,
Varanasi.
PAN - AAFCS9476A
5 ITA No. 2008-2009 A.C.I.T., C.C., M/s Babylon Green Shri Satyam
410/A/2012 Varanasi Estate Pvt. Ltd., Agrawal, CA
D-27/90, ground Floor,
Shakambari Complex,
Bhelupura, Varanasi.
PAN - AACCB4353N
6 ITA No. 2010-2011 A.C.I.T., C.C., M/s Shubh Realtors, Shri Satyam
426/A/2012 Varanasi D-27/90, ground Floor, Agrawal, CA
Shakambari Complex,
Varanasi.
PAN - ABKFS0184Q
7 ITA No. 2009-2010 J.C.I.T., range - 01, M/s Annapurna Plastic None
601/A/2014 Gorakhpur Products Pvt. Ltd.,
Lal Diggi Chowk,
Gorakhpur.
PAN - AAFCA0541C
8 ITA No. 2009-2010 I.T.O., Ward - 1(4), Shri Rajendra Kumar Shri Satyam
11/A/2015 Gorakhpur Tripathi, Pharenda Road, Agrawal, CA for Shri
In front of Block, Ashish Bansal,
Maharajganj. Advocate
PAN - ADRPT2450P
9 CO No. Shri Rajendra I.T.O., Ward - 1(4),
15/A/2015 (In Kumar Tripathi, Gorakhpur
ITA No. 164/A/2011 & 56 other appeals and COs Page 2 of 13
ITA No. Pharenda Road, In
14/A/2015) front of Block,
Maharajganj.
PAN -ADRPT2450P
10 ITA No. 2011-2012 A.C.I.T., Circle - 3, M/s Kiran Society, Shri Aprameya M.
104/A/2016 Varanasi Kiran Village, Madhopur, Gabhawala, CA
P.O.-Kuruhuan, Varanasi.
PAN - AAATK6393G
11 ITA No. 2012-2013 A.C.I.T., C.C., Smt. Neeta Agrawal, Shri Deepak Gujrati,
114/A/2016 Varanasi Prop. G.N. Brothers, CA
K-37/34, Goal Ghar,
Varanasi.
PAN - ABVPA7299R
12 ITA No. 2012-2013 A.C.I.T., C.C., M/s G. N. Exports, Shri Deepak Gujrati,
115/A/2015 Varanasi K-37/34, Goal Ghar, CA
Varanasi.
PAN - AADFG2312E
13 ITA No. 2007-2008 A.C.I.T., C.C., Shri Vinod Kumar Jalan, Shri Satyam
155/A/2016 Varanasi Boaring No. 10, Industrial Agrawal, CA for Shri
Estate, Gorakhpur. Ashish Bansal,
PAN - AAXPJ3258Q Advocate
14 ITA No. 2008-2009 A.C.I.T., C.C., Shri Vinod Kumar Jalan, Shri Satyam
156/A/2016 Varanasi Boaring No. 10, Industrial Agrawal, CA for Shri
Estate, Gorakhpur. Ashish Bansal,
PAN - AAXPJ3258Q Advocate
15 ITA No. 2012-2013 I.T.O., Ward - M/s Suman Engineering Shri Ashim Zafar
229/A/2016 III(4), Sonebhadra Works, Adv.
Type-III-9, JME
Shaktinagar,
Sonebhadra.
PAN - AAIFM8198H
16 ITA No. 2009-2010 D.C.I.T., Circle - 03, M/s Banaras Hotel Ltd., Shri Ashim Zafar
06/A/2018 Varanasi Nadesar, Varanasi. Adv.
PAN - AABCB2234P
17 ITA No. 2010-2011 D.C.I.T., Circle - 03, M/s Banaras Hotel Ltd., Shri Ashim Zafar
07/A/2018 Varanasi Nadesar, Varanasi. Adv.
PAN - AABCB2234P
18 ITA No. 2005-2006 A.C.I.T., Range - Shri Manoj Kumar None
124/A/2017 02, Gorakhpur Agarwal,
Prop. M/s Agarwal
Carriers, Padrauna,
Kushinagar.
PAN - ADGPK3167M
19 ITA No. 2008-2009 I.T.O., Ward - 2(2), Tej Pratap Shahi, None
126/A/2017 Gorakhpur HP Children Academy,
09 Civil Lines, Gorakhpur.
PAN - AISPS9022L
20 ITA No. 2013-2014 I.T.O., Ward - 2(2), M/s Swastik Associates, Shri P. P. Agrawal,
158/A/2017 Gorakhpur Goel Hata, Dharamshala Adv.
Bazar, Gorakhpur.
PAN - ABWFS6831Q
21 ITA No. 2010-2011 A.C.I.T., Circle - 02, M/s Sri Ghanshyam Shri S. P. Shukla,
215/A/2017 Gorakhpur Narayan Manav Kalyan Adv.
Sansthan,
Pali, Sahjanwa,
Gorakhpur.
PAN - AACAS9596A
ITA No. 164/A/2011 & 56 other appeals and COs Page 3 of 13
22 ITA No. 2013-2014 A.C.I.T., Circle - 02, M/s Sri Ghanshyam Shri S. P. Shukla,
159/A/2017 Gorakhpur Narayan Manav Kalyan Adv.
Sansthan,
Pali, Sahjanwa,
Gorakhpur.
PAN - AACAS9596A
23 ITA No. 2014-2015 A.C.I.T., Circle - 02, M/s Sri Ghanshyam Shri S. P. Shukla,
216/A/2017 Gorakhpur Narayan Manav Kalyan Adv.
Sansthan,
Pali, Sahjanwa,
Gorakhpur.
PAN - AACAS9596A
24 ITA No. 2011-2012 D.C.I.T., Range - 1, M/s Buddha Hospital Pvt. None
167/A/2017 Gorakhpur Ltd.,
Park Road, Gorakhpur.
PAN - AACCB2524P
25 ITA No. 2014-2015 D.C.I.T., Range - 1, Shri Manish Kumar Shri Ashim Zafar
218/A/2017 Gorakhpur Baranwal, Adv.
Prop. M/s New Vivek
Jewelers, rapti Complex,
Asuran Chowk,
Gorakhpur.
PAN - ACVPB5606Q
26 ITA No. 2014-2015 A.C.I.T., Range - 1, Shri Awadhesh Kumar None
220/A/2017 Gorakhpur Srivastava,
33, Kasia Road,
Betiahata, Gorakhpur.
PAN - AISPS9029B
27 ITA No. 2013-2014 A.C.I.T., Range - II, M/s Khalsa Mining & Shri Ashim Zafar,
285/A/2017 Gorakhpur Engineering, Adv.
Vill. Khairat, PO -
Sanwreji, Khampar,
Deoria.
PAN - AAIFK8999A
28 ITA No. 2013-2014 I.T.O., Ward - 3(4), Smt. Kiran Singh, Shri Abhishek
290/A/2017 Deoria Vijay Laxmi Enterprises, Agarwal, Adv.
Kakawal, Deoria.
PAN - BOQPS2003N
29 CO No. Smt. Kiran Singh, I.T.O., Ward - 3(4),
01/Vns/2019 Vijay Laxmi Deoria
(In ITA No. Enterprises,
01/Vns/2019) Kakawal, Deoria.
PAN -
BOQPS2003N
30 ITA No. 2013-2014 A.C.I.T., Cirle - M/s Life Line Hospital & Shri Pankaj
296/A/2017 Azamgarh Research Centre, Chaubey, CA
496, Madhya, Azamgarh.
PAN - AADFL2597C
31 ITA No. 2013-2014 I.T.O., Ward - 1(1), M/s Atma Garments Pvt. Shri Ashish Jindal,
04/Vns/2018 Varanasi Ltd., CK-19/17, Chowk, CA
Varanasi.
PAN - AAECA8650M
32 ITA No. 2012-2013 I.T.O. - 1, Jaunpur M/s Helm Infra None
18/A/2018 Developers Pvt. Ltd.,
Diljak, Goolarghat, Post -
Virbhan, Jaunpur.
PAN - AACCH7133E
33 ITA No. 2012-2013 I.T.O., Ward - 3(5), Sri Raghvendra Kumar Shri Abhishek
ITA No. 164/A/2011 & 56 other appeals and COs Page 4 of 13
36/A/2018 Deoria Jaiswal, Agarwal, Adv.
Lasmi Narain Market,
Barhaj Gali, Station Road,
Deoria.
PAN - AGHPJ0827H
34 ITA No. 2013-2014 A.C.I.T., Range - 2, M/s Panjab Cooperative None
57/Vns/2018 Gorakhpur Cane Development
Union Ltd., Ramkola,
Kushinagar.
PAN - AAAAP5273F
35 ITA No. 2012-2013 A.C.I.T., Range - 2, M/s Sahkari Ganna Vikas None
58/Vns/2018 Gorakhpur Samiti, Khadda,
Kushinagar.
PAN - AACAS5492F
36 ITA No. 2014-2015 I.T.O., Ward - 2(5), Shri Sanjay Kumar Singh, Shri J. P. Singh, C.A
84/Vns/2018 Ballia S/o Shri Prabhu Nath,
Bankatta, Subhash
Nagar, Ballia,
PAN - CNTPS0007F
37 ITA No. 2012-2013 D.C.I.T., Range - M/s Cooperative Can None
232/A/2018 02, Gorakhpur Development Union Ltd.,
Chitauni, Kushinagar.
PAN - AAAAC3328G
38 ITA No. 2012-2013 D.C.I.T., Range - M/s Seorahi Cooperative None
233/A/2018 02, Gorakhpur Can Development Union
Ltd., Seorahi, Kushinagar.
PAN - AABAS8968D
39 ITA No. 2014-2015 I.T.O. Ward - 1(1), Shri Ajay Kumar Shri Subodh Kumar
234/A/2018 Gorakhpur Srivastava, Srivastava, Adv.
Prop. M/s Ajay
Enterprises, Naugarh
Road, Bansi, Siddhartha
Nagar.
PAN - AVFPS2797C
40 ITA No. 2011-2012 A.C.I.T., Circle - 03, Shri Ganga Sagar Singh, Shri Subhash
07/Vns/2018 Varanasi Village - Karampur Chand, Adv.
Aurihar, Saidpur,
Gazipur.
PAN AXWPS6480P
41 ITA No. 2014-2015 I.T.O., Ward - 3(5), Shri Chandan Kumar, Shri Ashim Zafar
08/Vns/2018 Ghazipur C/o Rajesh Gun House, Adv.
Kachehari Road,
Ghazipur.
PAN - AOFPK6839Q
42 ITA No. 2013-2014 A.C.I.T., C.C., M/s Azam Rubber None
11/Vns/2018 Gorakhpur Product Ltd., AL-09,
Sector, GiDA, Gorakhpur
PAN - AAECA1870F
43 CO No. M/s Azam Rubber A.C.I.T., C.C.,
03/Vns/2019 Product Ltd., AL- Gorakhpur
(In ITA No. 09, Sector, GIDA,
11/Vns/2018 Gorakhpur.
PAN - AECA1870F
44 ITA No. 2014-2015 I.T.O., Ward - 2(1), Shri Om Prakash Jaiswal, None
15/Vns/2018 Gorakhpur M/s Jaiswal Trading Co.,
Minwa, Sahjanwa,
Gorakhpur.
PAN - AGWPJ7026R
ITA No. 164/A/2011 & 56 other appeals and COs Page 5 of 13
45 ITA No. 2009-2010 I.T.O., Ward - 3(4), Shri Anil Kumar Jaiswal, None
16/Vns/2018 Deoria Apsara Lodge, Station
Road, Deoria.
PAN - AHYPJ6545N
46 ITA No. 2015-2016 A.C.I.T., Circle - Shri Moinuddin Khan, Shri M. L.
18/Vns/2018 Azamgarh Lonadeeh, Phulpur, Kesarwani, C.A.
Azamgarh.
PAN - BGKPK8619N
47 ITA No. 2014-2015 A.C.I.T., Range - 1, M/s Purvanchal Caterers, None
30/Vns/2018 Gorakhpur 157 - A, Awas Vikas
Colony, Shahpur,
Gorakhpur.
PAN - AAGFP2689E
48 ITA No. 2011-2012 I.T.O., Ward - 2(1), Shri Param Hansh Singh, None
32/Vns/2018 Gorakhpur M/s Hitech Medical
Agency, Kalyanpur
Barhalganj, Gorakhpur.
PAN - AGZPS5895C
49 ITA No. 2014-2015 I.T.O., Ward - 01 M/s Ram Harakh Jaiswal, None
36/Vns/2018 (2), Gorakhpur Ward No. 10, Pipraich,
Gorakhpur.
PAN - AAKFR4780Q
50 ITA No. 2014-2015 I.T.O., Ward - 02 M/s Samriddhi Life Style, None
47/Vns/2018 (2), Gorakhpur Maya Sahu Katra,
Golghar, Gorakhpur.
PAN - ACFFS5461G
51 ITA No. 2010-2011 A.C.I.T., Circle - M/s Ashok Kumar Singh, Shri Prasoon Goel
105/Vns/2018 Azamgarh. Nizamabad, Azamgarh. and Shri Shivam
PAN - AAQFM2839P Garg, CAs
52 ITA No. 2014-2015 I.T.O. - 2 (2), Shri Sita Ram Yadav, None
10/Vns/2019 Gorakhpur Bilandpur, Gorakhpur.
PAN - AAYPY6078J
53 ITA No. 2014-2015 I.T.O. - 1(1), Shri Ashok Kumar Verma, None
24/Vns/2019 Gorakhpur Prop. M/s J. P. Jewelers,
Rapti Complex, Asuram
Chowk, Medical College,
Gorakhpur.
PAN - AAVPV0507A
54 ITA No. 2015-2016 I.T.O., Range - Shri Ganesh Yadav, None
41/Vns/2019 3(1), Varanasi Baraipur, Chunar Road,
Kandwa, Chitaipur,
Varanasi.
PAN - ADVPY9993N
55 ITA No. 2010-2011 I.T.O., Ward - 3(5), Shri Haushala Prasad Rai, Shri Ashim Zafar
108/Vns/2019 Ghazipur S/o Rajendra Prasad Rai, Adv.
Chandra Shekhar Nagar
Colony Rauza, Ghazipur.
PAN - AGRPR2748B
56 ITA No. 2010-2011 I.T.O., Ward - 2(3), Smt. Usha Mishra, Shri S. N. Mani,
116/Vns/2019 Gorakhpur Usha Villa, Adv.
Vivekanandpuri Colony,
Daudpur, Gorakhpur.
PAN - BBTPM8442B
57 ITA No. 2009-2010 A.C.I.T., Circle - II, Shri Gautam Choudhari, Shri Ashish Jindal,
120/Vns/2019 Varanasi D - 66, Chandrika Nagar CA
Colony, Sigra, Varanasi.
PAN - AFGPC3746Q
ITA No. 164/A/2011 & 56 other appeals and COs Page 6 of 13
Department by: Shri Ashok Kumar Tripathi, CIT (D.R.) and
Shri A. P. Mani, D.R.
Date of hearing: 29 08 2019
Date of pronouncement: 29 08 2019
ORDER
PER BENCH:
These appeals filed by the Revenue are directed against the orders by the Commissioner of Income Tax (Appeals)/s, relating to different assessees for different assessment years, and in some cases the assessees have also filed Cross Objections (COs).
2. Section 268A of the Act provides that an appellate authority, including the Appellate Tribunal, shall have regard to the instructions, directions, orders, etc. issued by the CBDT ('Board') from time to time fixing monetary limits for the purpose of regulating the filing of appeals by the Revenue before the different appellate authorities, and which shall, while deciding those appeals, have regard to the said limits.
3. Since the 'tax effect', as computed in terms of Circular 3 of 2018, dated 11/7/2018 issued by the Board u/s. 119 r/w s. 268A of the Act, involved in these appeals filed by the Department does not exceed Rs.50 lakhs in each of these appeals, they are not maintainable in view of CBDT's Circular No.17/2019, dated 8th August, 2019, and are liable to be dismissed as such. Since all these appeals are to be disposed on the basis of the monetary limit, as now revised, we have decided to dispose of them by passing a composite order.
4. The parties were heard.
5. Recently, the Ahmedabad Bench of this Tribunal has passed a composite order, dismissing, similarly, 628 appeals by the Revenue and related COs by the assessees. The order is instructive, and is accordingly reproduced as under:
ITA No. 164/A/2011 & 56 other appeals and COs Page 7 of 13"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 appeals does not exceed Rs.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 representatives of the Ahmedabad ITAT Bar Association, individual notices are dispensed with; notices of hearing are given only through the notice board.
2. It is in this backdrop that we are pleased to take note of a very pragmatic and taxpayer friendly policy decision by the Government of India for reducing the income tax litigation. Vide CBDT circular dated 8th August, 2019, the income 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 interest- except when interest itself is in dispute, is Rs 50,00,000 or less. What it means, in plain words, is that when a Commissioner (Appeals) gives the taxpayer tax relief of upto Rs 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 Rs 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 Rs 2 crore to the taxpayer in an appeal in an assessment year, that relief cannot be challenged before Hon'ble Supreme Court. These monetary threshold 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 ITA No. 164/A/2011 & 56 other appeals and COs Page 8 of 13 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 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 mind the impact of this observation while giving effect to the circular dated 8th August, 2019. She, however, hastens to add that she is yet to have any specific instructions on the issue and she leaves it for the bench to take the appropriate call. Learned representatives appearing for the taxpayers vehemently oppose the suggestion implicit in her submissions. All of them are unanimous in their argument 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, ITA No. 164/A/2011 & 56 other appeals and COs Page 9 of 13 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 circular to orders dealing with more 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 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.ITA No. 164/A/2011 & 56 other appeals and COs Page 10 of 13
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. Our line of reasoning is this. The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular. This is evident from the following extracts from the circular dated 8thAugust 2019:
2. As a step towards further management 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: "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 ITA No. 164/A/2011 & 56 other appeals and COs Page 11 of 13 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.
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 appeals are covered by the exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs 50,00,000. None opposes this prayer; we accept the same. We make it clear that the appellants shall be at liberty to point out the cases which are wrongly included in the appeals so summarily dismissed, either owing to wrong computation of tax effect or owning to such cases being covered by the permissible exceptions- or for any other reason, and we will take appropriate remedial steps in this regard.
ITA No. 164/A/2011 & 56 other appeals and COs Page 12 of 139. In the light of the above discussions, all the appeals stand dismissed as withdrawn. As the appeals filed by the Revenue are found to be non-maintainable and as all the related cross-objections of the assessee arise only as a result of those appeals and merely support the order of the CIT(A), the cross objections filed by the assessee are also dismissed as infructuous. Ordered, accordingly."
6. In view of the foregoing, the Revenue's appeals and the assessees' COs are being dismissed in limine as withdrawn/not pressed.
7. It may be clarified that though every care has been taken by the Registry of the Tribunal in identifying the listed appeals, it may yet be that some error in working the tax effect may have occurred. It may also be that an appeal/s is otherwise saved by the exceptions listed at para 10 (scope of which stands widened vide amendment dated 20/8/2018) or para 11 of the Circular. Similarly, it may be that a CO/s bears an independent ground/s, raised for adjudication. Accordingly, liberty is hereby granted to the parties to, where so, move the Tribunal in this regard, in which case it shall, where satisfied on merits, recall an appeal/s or, as the case may be, a CO/s, for being heard on merits. Further, the recall of an appeal would be accompanied by the recall of the assessee's corresponding CO, if any, dismissed along with. Needless to add, the Tribunal shall, while doing so, which shall be per a speaking order, grant an opportunity of hearing to the other side.
8. In the result, all the appeals of the Revenue and Cross Objections by the assessees stand dismissed.
Order pronounced in the open Court on 29/08/2019.
Sd/- Sd/-
[T. S. KAPOOR] [A. D. JAIN]
ACCOUNTANT MEMBER VICE PRESIDENT
DATED:29/08/2019
JJ:2908
Copy forwarded to:
1. Appellant
2. Respondent
ITA No. 164/A/2011 & 56 other appeals and COs Page 13 of 13
3. CIT(A)
4. CIT
5. DR