IN INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. B.R. BASKARAN, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA Nos.311 & 312/Asr/2017 Assessment Years:2008-09 & 2010-11 Income Tax Officer Vs. Sh. Subhash Chander Saggi Ward-3, Pathankot B-52, 3rd Floor, Lajpat Nagar-2, New Delhi [PAN:APTPS 9171C] (Appellant) (Respondent) Cross Objection Nos.01 & 02/Asr/2019 (Arising out of ITA Nos.311 & 312/Asr/2017) Assessment Year: 2008-09 & 2010-11 Sh. Subhash Chander Saggi Vs. Income Tax Officer B-52, 3rd Floor, Ward-(6)3, Pathankot Lajpat Nagar-2,New Delhi [PAN:APTPS 9171C] (Cross Objector) (Respondent) Appellant by: Sh. Charan Dass (Ld. DR) Respondent by: Sh. Vinamar Gupta (Ld.CA) Date of hearing: 21.08.2019 Date of pronouncement: 21.08.2019 ORDER PER BENCH Revenue Department has preferred captioned appeals against orders impugned herein passed by Ld. CIT(A) in captioned matters u/s 250(6) of Act, 1961 (hereinafter called as Act ), whereas Assessee has also preferred Cross Objections captioned above . 2 ITA Nos.311 & 312/Asr/2017 C.O. Nos.01 & 02/Asr/2019 ITO vs. Subhash Chander Saggi 2. At outset it is observed that tax effect involved in appeals is not more than 50 lacs, and cross objections are more or less in favour of impugned order, hence same have been taken simultaneously for adjudication by this composite order. In view of latest CBDT Circular No.17/2019, dated 08.08.2019 these appeals are liable to be dismissed as not maintainable. Ld. DR though agreed that tax effect in instant appeals is not exceeding threshold limit of 50 lacs as prescribed under Circular No.17/2019 (supra), however, emphasized that said Circular is applicable from date of issue of circular i.e. 8th August, 2019 and therefore, effect to circular cannot be given retrospectively, as para no.4 of Circular prescribes "the said modifications shall come into effect from date of issue of this Circular", therefore, only inference can be drawn that from 8th August, 2019 onwards, Revenue Department is precluded from filing appeals against orders in which tax effect limit does not exceed as specified in Circular, but not otherwise applicable to pending appeals. 3. Having considered tax effect involved in appeals under consideration and issue raised by Ld. DR. 4. ITAT Bench at Ahmedabad in Income Tax Officer Ward 3(2), Ahmedabad Vs Dinesh Madhavlal Patel {ITA No.1398/Ahd/2004 relevant to A.Y.1998-99} as lead case, vide its order dated 14th August, 2019 thoroughly considered Circular No.17/2019 (supra) in conjoint with CBDT Circular 3 ITA Nos.311 & 312/Asr/2017 C.O. Nos.01 & 02/Asr/2019 ITO vs. Subhash Chander Saggi No.03/2018 and resolved controversy with regard to effect of Circular qua retrospective or prospective. For sake of brevity and ready reference, concluding part of order is reproduced herein below. 5. Having considered rival submissions and having perused material on record, we do not have slightest of hesitation in holding that concession extended by CBDT not only applies to appeals to be filed in future but it is also equally applicable to appeals pending for disposal as on now. Our line of reasoning is this. circular dated 8th August 2019 is not standalone circular. It is to be read in conjunction with CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of said circular. This is evident from following extracts from circular dated 8th August 2019: 2. As step towards further management of litigation. it has been decided by Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of Circular mentioned above and accordingly, table for monetary limits specified in Para 3 of 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 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 circular is substituted by following para: 4 ITA Nos.311 & 312/Asr/2017 C.O. Nos.01 & 02/Asr/2019 ITO vs. Subhash Chander Saggi 5. Assessing Officer shall calculate tax effect separately for every assessment year in respect of disputed issues in case of every assessee. If in case of assessee, disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which tax effect in respect of disputed issues exceeds monetary limit specified in para 3. No appeal shall be filed in respect of assessment year or years in which tax effect is less than monetary limit specified in para 3. Further, even in 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 assessment year or years in which tax effect is less than monetary limit specified in para 3. In case where composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately 4. said modifications shall come into effect from date of issue of this Circular. 6. Clearly, all other portions of circular no. 3 of 2018 (supra) have remained intact. portion which has remained intact includes paragraph 13 of 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 specified tax limits in pare 3 above may be withdrawn/ not pressed. 7. In view of above discussions, we hereby hold that relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8th August 2019 5 ITA Nos.311 & 312/Asr/2017 C.O. Nos.01 & 02/Asr/2019 ITO vs. Subhash Chander Saggi (supra) shall be applicable to pending appeals in addition to 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 dismissal of appeals and restoration of appeals in cases (i) in which it can be demonstrated that appeals are covered by exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein tax effect, in terms of CBDT circular (supra), exceeds Rs 50,00,000. None opposes this prayer; we accept same. We make it clear that appellants shall be at liberty to point out cases which are wrongly included in appeals so summarily dismissed, either owing to wrong computation of tax effect or owning to such cases being covered by permissible exceptions- or for any other reason, and we will take appropriate remedial steps in this regard. 9. In light of above discussions, all appeals stand dismissed as withdrawn. As appeals filed by Revenue are found to be non-maintainable and as all related cross-objections of assessee arise only as result of those appeals and merely support order of CIT(A), cross objections filed by assessee are also dismissed as infructuous. Ordered, accordingly. 10. As we part with matter, we must place on record our deep appreciation to our own team which has painstakingly identified all these low tax effect appeals in long weekend and less than two working days, to Principal Chief Commissioner of Income Tax Gujarat, as also learned Departmental Representatives, for his immense help, cooperation and active involvement in speedily disposing of these appeals, and, of course, to ITAT Bar Association Ahmedabad for their whole hearted cooperation in this special drive. circular was issued on Thursday 8th August 2019, and within two working days and long weekend, today on 14th August 2019, all appeals stand disposed of. It s only team effort 6 ITA Nos.311 & 312/Asr/2017 C.O. Nos.01 & 02/Asr/2019 ITO vs. Subhash Chander Saggi and whole hearted cooperation of all stakeholders that can enable us to so speedily implement taxpayer friendly initiatives of Government of India. taxpayer relief involved in these appeals, including interest and other corollaries, is estimated to be well over Rs 350 crores. lead case before us is appeal filed over fifteen years ago by Income Tax Officer and it deals with assessment year which pertains to period over twenty years ago. Yet, matter had not reached finality and revenue s challenge to relief granted by Commissioner (Appeals) had remained undecided. That is nothing but prolonged agony of uncertainty to taxpayers. It is indeed appreciable goodwill gesture by Government, for so many taxpayers, on eve of this Independence Day and offering them freedom from prolonged mental agony and uncertainty of litigation. 11. In results, all appeals are dismissed as withdrawn and cross objections are dismissed as infructuous. Pronounced in open court today on 14th August, 2019. 5. In aforesaid judgment, Co-ordinate Bench of ITAT Ahmedabad, has elaborately discussed probable issues and held that concession extended by CBDT not only applies to appeals to be filed in future but it is also equally applicable to appeals pending for disposal as on now on reasoning that circular dated 8th August 2019 is not standalone circular, it is to be read in conjunction with CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of said circular (pertains to monetary limit for filling appeals {emphasis ours} ) . All other portions of circular no. 3 of 2018 (supra) have remained intact. portion which has remained intact includes paragraph 13 of aforesaid circular which prescribe that 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/ 7 ITA Nos.311 & 312/Asr/2017 C.O. Nos.01 & 02/Asr/2019 ITO vs. Subhash Chander Saggi cross objections/references. Pending appeals below specified tax limits in pare 3 above may be withdrawn/ not pressed. 6. Even Apex Court in case of Dy. Commissioner of Income tax, cirlce-1(2)(2) Mumbai & ors. Petitioner(s) Versus MSEB Holding Company ltd. Respondent(s) (Special Leave Petition (Civil) Diary No.26373/2019) vide its order dated 16-08- 2019, has taken cognizance of CBDT Circular No.17/2019 dated 08th August 2019 and dismissed appeal by holding: ORDER Delay condoned. Since tax effect involved in this matter is less than Rs.2 crores, we see no reason to interfere in this matter. special leave petition is dismissed, leaving all questions of law open. Pending application(s), if any, shall stand disposed of. 7. In view of aforesaid judgments of Apex Court and Ahmedabad bench of ITAT and while reading CBDT Circular no. 17/2019 and no. 03 of 2018 conjointly, we do not have hesitation to hold that effect of CBDT Circulars no. 17/2019 shall be retrospectively and therefore applicable to pending appeals as well, hence appeals under consideration filed by Revenue Department are liable to be dismissed as withdrawn. 8. CROSS OBJECTIONS Cross Objections filed by Asseeee are more or less in support of orders impugned and even assessee has withdrawn same, hence in view of dismissal of appeal of Revenue Department and statement of Ld. Counsel of Assessee, Cross Objections filed by Assessee also stands dismissed as infructuous and withdrawn. 8 ITA Nos.311 & 312/Asr/2017 C.O. Nos.01 & 02/Asr/2019 ITO vs. Subhash Chander Saggi 9. In result, appeals filed by Revenue Department stands dismissed as withdrawn, whereas Cross Objections filed by Asseeee stands dismissed as infructuous and withdrawn. Order pronounced in open Court on 21/08/2019. Sd/- Sd/- (B.R.BASKARAN) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:21/08/2018 /PK/ Ps. Copy forwarded to: 1. Appellants 2. Respondents 3. CITs 4. CIT(Appeals) 5. SR DR, I.T.A.T. Amritsar 6. Guard File True Copy By Order Income-tax Officer, Ward-3, Pathankot v. Subhash Chander Saggi