, C , IN INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA Before Shri S.S.Godara, Judicial Member and Dr. A.L. Saini, Accountant Member ITA No.674/Kol/2017 Assessment Year :2012-13 ACIT, Circle-6(2), V/s. M/s NIP Power Pvt. Ltd., Aayakar Bhawan, 6th 59, N.S. Road, 1 s t Floor, Floor, RoomNo.6/15, P- Kolkata-700001 7, Chowringhee Square, [PAN No. AABCN5632M] Kolkata-69 Appellant .. Respondent By Appellant Shri Sankar Kumkar Halder, JCIT-SR-DR By Respondent Shri Ashish Rutagi, FCA Date of Hearing 22-08-2019 Date of Pronouncement 23-08-2019 ORDER PER S.S.Godara, Judicial Member:- This Revenue s appeal for assessment year 2012-13, arises against Commissioner of Income-tax (Appeals)-2 Kolkata s order dated 03.01.2017 passed in case No.781/CIT(A)-2/15-16 involving proceedings u/s. 143(3) of Income Tax Act, 1961; in short Act . Heard both sides. Case file perused. 2. It is seen at outset that tax effect on disputed additions before us is less than Rs. 50 lacs in cases i.e. less than prescribed revised threshold limit in CBDT s latest Circular No17/2019 dated ITA No.674/Kol/2017 A.Y. 2012-13 ACIT, Cir-6(2), Kol. Vs. M/s NIP Power Pvt. Ltd. Page 2 08.08.2019. It will be pertinent to reproduce relevant portion of said Circular as follows:- 2 . As step toward 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 3.1 We find that intention behind Circular No17/2019 dated 08.08.2019 needs to be understood in following perspective:- 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- -vis where composite order for more than one assessment year is passed, para 5 of circular is substituted by following para: 5. Assessing Officer shall calculate tax effect separately for every assessment year in respect of disputed issues in case of every assessee. if, 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 assessments 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/judgment involves more than one assessee, each assessee shall be dealt with separately. 3.2. On perusal of Circular No. 17/2019 dated 08.08.2019 and materials available on record, we do not see this case falling under any of exceptions contemplated in said circular per se. We also find that this circular makes it very clear that revised monetary limits shall apply retrospectively to pending appeals as well. Hon ble apex court in Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC) has settled law that CBDT s circulars are very much binding on ITA No.674/Kol/2017 A.Y. 2012-13 ACIT, Cir-6(2), Kol. Vs. M/s NIP Power Pvt. Ltd. Page 3 revenue authorities. We thus hold that this Revenue s appeal raising sole issue of 1,25,00,000/- deserve to be dismissed in terms of low tax effect. We make it clear that it shall very much open for Revenue to seek necessary rectification in case it is found that any of appeal involves operations of exception clauses in tax effect circular as per law. 4. This Revenue s appeal is dismissed for involving lower than prescribed minimum tax effect. Order pronounced in open court 23/08/2019 Sd/- Sd/- A.L.Saini) (S.S.Godara) (Accountant Member) (Judicial Member) Kolkata, *Dkp (23/08/2019 Copy of Order Forwarded to:- 1. Appellant-ACIT, Cir-6(2), Aayakar Bhawan, 6th Floor, RoomNo.6/15, P-7 Chowringhee Square, Kolkata-69 2. Respondent-M/s NIP Power Pvt. Ltd., 59, N.S. Road, 1st Fl. Kolkata-001 3. 3 4 Concerned CIT Kolkata 4. 4 - CIT (A) Kolkata 5. 7 ' ' 3 , 3 DR, ITAT, Kolkata 6. Guard file. By order//True Copy 3 ACIT, Circle-6(2), Kolkata v. NIP Power Pvt. Ltd