IN INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH , CHANDIGARH
BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.963/Chd/2014 Assessment Year : 2011-12 A.C.I.T.,
Circle-II, Ludhiana. Sh.Adesh Bajaj, C/o Bliss Restaurant, 26-30, SCF, Rishi Nagar, Ludhiana. PAN NO: ABUPB1536F Respondent Assessee by: Shri Sudhir Sehgal, Adv. Revenue by: Smt.Chanderkanta, Sr.DR Date of Hearing : 28.08.2019 Date of Pronouncement: 29.08.2019 ORDER Per Annapurna Gupta, Accountant Member: This appeal has been preferred by Revenue against order of Commissioner of Income Tax (Appeals)-I, Ludhiana [(in short CIT(A)] dated 29.8.2014 relating to ITA No.963/Chd/2014 A.Y. 2011-12 assessment year 2011-12, passed u/s 250(6) of Income Tax Act, 1961 (hereinafter referred to as Act). 2. above appeal was earlier heard on 11.7.2019 but before order could be pronounced CBDT issued Circular enhancing monetary limit for filing appeals by Department to I.T.A.T. from Rs.20 lacs to Rs.50 lacs vide its Circular No.17/2019 dated 8.8.2019. In view of same and since tax effect involved in this appeal appeared to be less than Rs.50 lacs, appeal was fixed for hearing again for seeking clarification from both parties on 28.8.2019. On said date Ld.Counsel for assessee submitted tax calculation with respect to appeal reflecting tax effect involved in appeal being less than Rs.50 lacs. 3. Ld. DR fairly conceded to this fact and also agreed that appeal was liable to be withdrawn on account of recent CBDT Circular. 4. In view of above, since present appeal admittedly stands covered within monetary limit specified by CBDT for filing appeals by Department to I.T.A.T., same stands dismissed as ITA No.963/Chd/2014 A.Y. 2011-12 withdrawn. Moreover, we have considered impact of impugned CBDT Circular in pending appeals in case of ACIT Vs. M/s Alchemist Ltd. in ITA Nos. 1142 & 1143/Chd/2012 dated 26.8.2019 wherein we have held that said Circular applies to pending appeals also. Our
discussion on this aspect at paras 4 and 5 of our order as under: 4. We have considered contentions of parties before us and have also gone through CBDT Circular No.17/2019 dated 8/8/19, and have noted enhancement in monetary limits for filing appeal by department to ITAT to Rs.50 lacs from earlier limit of Rs. 20 lacs which was specified vide Circular No.3/2018.We have also noted that CBDT has vide this circular modified only para 3 and 5 of its earlier circular No.3/2018 leaving all other paras intact. Para 13 of earlier circular dealt with applicability of circular retrospectively to pending appeals also and read as under: 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 para 3 above may be withdrawn/ not pressed. 5. Since this para has not been modified by recent circular, enhanced monetary limits specified in recent circular will apply to pending appeals also. In view of CBDT Circular No. 17/2019 (supra) read along with Circular No.3/2018,the present appeals of Revenue is dismissed due to low tax effect. ITA No.963/Chd/2014 A.Y. 2011-12 5. In view of CBDT Circular No.17/2019 dated 8.8.2019 read along with Circular No.3/2018, present appeal of Revenue is dismissed due to low tax effect. 6. It is, however, clarified that dismissal of above appeal shall not be taken to be affirmation of order of CIT(A) on merits. legal issue raised by Revenue is being left open to be adjudicated in appropriate case. 7. In result, Departmental appeal is dismissed. Order pronounced in Open Court.
(DIVA SINGH) (ANNAPURNA GUPTA) Judicial Member Accountant Member Dated: 29th August, 2019 Copy of order forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5.DR, ITAT, CHANDIGARH 6. Guard File By order, Assistant Registrar A.C.I.T., Circle-II, Ludhiana v. Adesh Bajaj