Income Tax Appellate Tribunal - Chennai
Dcit, Chennai vs Renu Sarin, Chennai on 22 August, 2019
आयकर अपील य अ धकरण, 'डी' यायपीठ, चे नई।
IN THE INCOME TAX APPELLATE TRIBUNAL
'A' BENCH: CHENNAI
BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER Sl. ITA No. Assessment Appellant Respondent No. year 1 1541/chny/2019 2013-14 JCIT,Corp Circle-2(2), The Investment Trust of India Chennai Ltd., 7, B Block,1st floor,Alsa Samar, 2nd Avenue,Anna Nagar East,Chennai-102 PAN AABCR 6577 K 2 1539/chny/2019 2010-11 ACIT,Non-Corp circle S.V.Ramakrishnan, 15 68/58,1st Avenue,Indira Nagar, Chennai. Adyar,Chennai-20 PAN ADOPR 9808 C 3 1542/chny/2019 2009-10 JCIT( OSD ), LTU-1, Sundaram Finance, Chennai. 21,Patullos Road,Chennai-2.
PAN AAACS 4944 A 4 2151/chny/2019 2009-10 DCIT,Central Circle-2(1) Renu Sarin, 5 2152/chny/2019 2011-12 Chennai 15/4,Masilamani Road, 6 2153/chny/2019 2012-13 Balaji Nagar,royapettah, 7 2154/chny/2019 2013-14 Chennai 600 014.
8 2155/chny/2019 2014-15 PAN ADXPR 7379 F
9 2156/chny/2019 2015-16
10 2197/chny/2019 2016-17 DCIT,Circle-3,Range-3, S.Ramachandran (HUF),
Trichy. New
No.3/340,Muthupattinam(South),
Kulavaipatti,Alangudi Taluk
Pudukkottai 622 201.
PAN AAUHS 9811 B
11 2199/chny/2019 2016-17 DCIT,Circle-3,Range-3, S.Manickavasagam,
Trichy. 109,Rail
Nagar,Ambikapuram,Golden
Rock, Trichy 620 015.
PAN AIJPM 7874 R
12 716/chny/2019 2015-16 DCIT,Non-Corp Valsala Venugopal,
circle 10(1) 306, 3rd Main Road,Baba
Chennai. Nagar,Villivakkam,
Chennai 600 049.
PAN AAGPV 1946 C
13 3355/chny/2018 2009-10 DCIT,Central Circle-2(4) Swaminathan Enterprises P
Chennai Ltd.,
14 3356/chny/2018 2014-15 143,Pudupakkam village,
Vandalur,Kelambakkam Road,
Kancheepuram District
PAN AAICS 2132 A
15 1732/chny/2019 2014-15 ITO, Non Corporte ward S.Easwari,
1(5), Chennai-34. 9/11,Link Road, Kottur Garden, Chennai 600 085.
PAN AABPE 7818 D Tax effect (15) cases below 50 lakhs :- 2 -:
अपीलाथ क ओर से/ Appellant by : Mr.M.S.Nethrapal,JCIT,D.R : Sl.No. as mentioned in cause Title यथ क ओर से /Respondent by Sl.N Name of Counsel o.
1 Mr.Saroj Parida,Advocate
3 Mr.Saroj Parida,Advocate
4 to Mr.K.Ravi,Advocate
9
13- R.Meenakshisundaram
14
सन
ु वाई क तार ख/Date of Hearing : 22-08-2019
घोषणा क तार ख /Date of Pronouncement : 22-08-2019
आदे श / O R D E R
PER BENCH:
These 15 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 Rs50,00,000/- in each of these appeals.
2. Vide CBDT circular No.17/2019 in F.No.279/Misc.142/2007-ITJ(Pt) 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, Tax effect (15) cases below 50 lakhs :- 3 -:
excluding interest except when interest itself is in dispute, is Rs 50,00,000 or less.
3. In view of the above factual background and the concession by this CBDT circular, all these appeals must be dismissed as withdrawn and the related cross objections must be dismissed as infructuous.
4. This circular, only enhances the monetary limits and gives further relaxation. The old circular, beyond any dispute or controversy, categorically applied to the pending appeals as on the date of issuance of circular.
5. The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular No. 3/2018 (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 Monetary matters Limit (Rs.) Tax effect (15) cases below 50 lakhs :- 4 -:
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 everyassessee. 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 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."
Tax effect (15) cases below 50 lakhs :- 5 -:
7. The Hon'ble Supreme Court in the case of The Commissioner of Income Tax-5,New Delhi Vs. Keshav Power Ltd., in SLP No.21497/2019 dated 16.08.2019 reported in 2019(8)TMI 811(SC) has also applied the Circular No.17/2019 dated 08.08.2019 has dismissed the appeal holding as follows:
"Since the tax effect involved in the matter is less than Rs.2/- crores, going by the latest circular issued by the CBDT, we see no reason to interfere in this matter. The Special Leave Petition is dismissed, leaving all the questions of law open".
8. Learned Commissioner (DR) 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.
9. In the circumstances, respectfully following the principles laid down by the Hon"ble Supreme Court in the case of the Commissioner of Income Tax effect (15) cases below 50 lakhs :- 6 -:
Tax-5,New Delhi Vs. Keshav Power Ltd., referred to supra and in the light of the above discussions, all the appeals filed by the Revenue are found to be non-maintainable.
10. In the result, all the appeals of Revenue are dismissed as withdrawn.
Pronounced in the open court today on 22nd August, 2019.
Sd/- Sd/-
(इंटूर रामा राव) (जॉज/ माथन)
(INTURI RAMA RAO) (GEORGE MATHAN)
लेखा सद,य/ACCOUNTANT MEMBER या0यक सद,य/JUDICIAL MEMBER
चे नई/Chennai,
1दनांक/Dated: 22nd August, 2019.
K S Sundaram
आदे श क 0त2ल3प अ4े3षत/Copy to:
1. अपीलाथ /Appellant 4. आयकर आय5
ु त/CIT
2. यथ /Respondent 5. 3वभागीय 0त0न ध/DR
3. आयकर आय5
ु त (अपील)/CIT(A) 6. गाड/ फाईल/GF