IN INCOME TAX APPELLATE TRIBUNAL , BENCH, CHENNAI, BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER. I.T. A. No.315/CHNY/201 9 ( Assessment Year 2015-16) ACIT, Vs Shri A. Muthuraman, Cuddalore Circle, No.4, Reddiyar Street, Kondur, Cuddalore. Cuddalore 607 006. PAN ACMPM0715G (Appellant) (Respondent) Appellant by Shri AR.V. Sreenivasan, JCIT /Respondent by None. I.T. A. No.83/ CHNY/2019 (Assessment Year 2008-09) Income Tax Officer, Vs Shri Kesavan Venkatesh, Ward 3, No.128, Anna Salai, Kanchi Super Namakkal. Market, Rasipuram 637 408. PAN ABGPV 5739A (Appellant) (Respondent) Appellant by Shri AR.V. Sreenivasan, JCIT Respondent by Shri G. Baskar, Advocate. I.T. A. No.1482/CHNY/2019 (Assessm ent Year 2014-15) DCIT, Vs M/s. Equitas Holdings Limited, Corporate Circle 2(1), 410, 4th Floor, Phase II, Chennai 34. Spencer Plaza, No.769, Anna Salai, Chennai 600 002. PAN: AAA CU9126C ( /Appellant) ( /Respondent) / Appellant by : Shri AR.V. Sreenivasan, JCIT /Respondent by : Shri T. Banusekar, CA 2 ITA Nos..315/Chny/2019 and 6 other appeals and 2 COs ./I.T. A. No.1032/CHNY/ 2019 ( / Assessm ent Year: 2014-15) Income Tax Officer, Vs Shri Rajesh Kumar Goel, Non-Corporate Ward 7(3), 1290, Golden Colony, Chennai 34. Anna Nagar West Extn., Mogappair, Chennai 600 050 PAN: AAJPG 4727F ( /Appellant) ( /Respondent) / Appellant by : Shri AR.V. Sreenivasan, JCIT /Respondent by : None ./I.T. A. No.1473/CHNY/ 2019 & C.O. No.69/Chn y/2 019 (in ITA No. 1473/Chny/2019) ( / Assessm ent Year: 2015-16 Income Tax Officer, Vs Smt. Vandana Anish Tibrewala, Non-Corporate Ward 7(4), No.1570, 13th Main Road, Chennai 34. Anna Nagar West, Chennai 40. PAN: AAAPT3350N ( /Appellant) ( /Respondent) / Appellant by : Shri AR.V. Sreenivasan, JCIT /Respondent by : Shri N. Gopalakrishnan, CA ./I.T. A. No.1474/CHNY/ 2019 & C.O. No.70/Chn y/2 019 (in ITA No. 1474/Chny/2019) ( / Assessm ent Year: 2015-16 Income Tax Officer, Vs Shri Anish Govindram Tibrewala, Non-Corporate Ward 7(4), No.1570, 13th Main Road, Chennai 34. Anna Nagar West, Chennai 40. PAN: AACPT1647C ( /Appellant) ( /Respondent) / Appellant by : Shri AR.V. Sreenivasan, JCIT /Respondent by : Shri N. Gopalakrishnan, CA 3 ITA Nos..315/Chny/2019 and 6 other appeals and 2 COs ./I.T. A. No.555/CHNY/201 8 ( / Assessm ent Year: 2013-14) DCIT, Vs M/s. Vital Industries India Pvt. Ltd., Corporate Circle 3(2), No.172, Luz Church Road, Chennai 34. Mylapore, Chennai 600 004. PAN: AANCS 5930K ( /Appellant) ( /Respondent) / Appellant by : Shri AR.V. Sreenivasan, JCIT /Respondent by : Shri M. Viswanathan, CA /D at e o f h e ar ing : 29.08.2019 /D at e o f Pr o no un c e m en t : 29.08.2019 / O R D E R / O R D E R PER BENCH : above appeals and Cross Objections pertain to appeals filed by various appellant Assessing Officers, call into question correctness of relief granted to respondent assessees by Commissioners of Income Tax (Appeals) concerned and, most importantly, tax effect involved in each of these appeals does not exceed Rs.50,00,000/-. cross objections taken up for hearing are only such cross objections as emanate from these appeals and are broadly in support of orders passed by Commissioner of Income Tax (Appeals), concerned. 4 ITA Nos..315/Chny/2019 and 6 other appeals and 2 COs 2. CBDT in its circular No.17/2019 in F.No.279/Misc.142/2007-ITJ(Pt) dated 8th August, 2019, has further liberalized its policy for not filing appeals against decisions of appellate authorities in favour of assessees, wherein tax involved is below certain threshold limits, and announced its policy decision not to file, or press, appeals, before this Tribunal, against appellate orders favourable to assessee in cases in which overall tax effect, excluding interest except when interest itself is in dispute, is Rs 50,00,000 or less. 3. above circular, only enhances monetary limits and gives further relaxation. old circular, beyond any dispute or controversy, categorically applied to pending appeals as on date of issuance of circular. 4. Thus, circular dated 8th August 2019 is not standalone circular. It is to be read in conjunction with CBDT circular No. 3/2018 (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: 5 ITA Nos..315/Chny/2019 and 6 other appeals and 2 COs 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- Monetary tax matters 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: 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. 5. 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: 6 ITA Nos..315/Chny/2019 and 6 other appeals and 2 COs 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. 6. Hon ble Supreme Court in case of 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 Circular No.17/2019 dated 08.08.2019 has dismissed appeal holding as follows: Since tax effect involved in matter is less than Rs.2/- crores, going by latest circular issued by CBDT, we see no reason to interfere in this matter. Special Leave Petition is dismissed, leaving all questions of law open . 7. In view of above factual background and concession given by CBDT circular No.17/2019 dated 08.08.2019, all above appeals must be dismissed as withdrawn and related cross objections must be dismissed as infructuous. 8. Learned Commissioner (DR) submitted that 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 7 ITA Nos..315/Chny/2019 and 6 other appeals and 2 COs 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 respondent assessee shall also 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 circumstances, respectfully following principles laid down by Hon ble Supreme Court in case of Commissioner of Income Tax-5,New Delhi Vs. Keshav Power Ltd., referred to supra and in light of above discussions, all above appeals filed by Revenue are found to be non-maintainable, and related cross-objections of assessee arise only as result of those appeals and merely in support order of CIT(A) concerned, therefore, cross objections filed by assessees are also dismissed as infructuous. 8 ITA Nos..315/Chny/2019 and 6 other appeals and 2 COs 10. In result, all above appeals of Revenue are dismissed as withdrawn as well as Cross-objections of above assessees are dismissed as infructuous. Order pronounced in open court on 29th August, 2019 at Chennai. Sd/- Sd/- (George Mathan) (S. Jayaraman) /Judicial Member Accountant Member Chennai, Dated 29th August, 2019 RSR Copy to 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR 6. GF ACIT, Cuddalore Circle, Cuddalore v. A. Muthuraman