IN INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D MUMBAI BEFORE SHRI RAVISH SOOD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA No. 1613/MUM/2017 Assessment Year: 2010-11 Deputy Commissioner of Shri Miteshh I Gadhia, 201, Income Tax Central Circle- Vs. Vyapar Bhavan, 2nd floor, 4(2), Mumbai Central Range-4 368/370, N N Street, Masjid Pr. CIT (C) -2, Mumbai R. No. Bunder Mumbai-400009 1918, 19th floor, Air India Building, Nariman Point, Mumbai-400021. PAN No. AEGPG2818A Appellant Respondent Revenue by : Mr. Manoj Kumar Singh, DR Assessee by : Mr. Radhakant Saraf, AR Date of Hearing : 06/09/2019 Date of pronouncement: 06/09/2019 ORDER PER N.K. PRADHAN, AM This is appeal filed by Revenue. relevant assessment year is 2010-11. appeal is directed against order of Commissioner of Income Tax (Appeals)-46, Mumbai [in short CIT(A) ] and arises out of assessment order under section 143(3) of Income Tax Act 1961, (the Act ). 2. Central Board of Direct Taxes (CBDT) vide Circular No. 17/2019 dated 08.08.2019 has amended Circular No. 3/2018 dated 11.07.2018 for further enhancement of monetary limit for filing of appeals by Department before ITAT, High Courts and SLPs/Appeals before Supreme Court as measures for reducing litigation. Shri Mitleshh I Gadhia 2 ITA No. 1613/Mum/2017 3. CBDT vide Circular No. 3/2018 dated 11.07.2018 has specified that appeals shall not be filed before Income Tax Appellate Tribunal (ITAT) in cases where tax effect does not exceed monetary limit of Rs.20,00,000/-. For this purchase, tax effect means difference between tax on total income assessed and tax that would have been chargeable had such total income been reduced by amount of income in respect of issues against which appeal is intended to be filed. Further, tax effect shall be taxes including applicable surcharge and cess. However, tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case chargeability of interest is issue under dispute, amount of interest shall be tax effect. In cases where returned loss is reduced or assessed as income, tax effect would include notional tax on disputed additions. In case of penalty order, tax effect will mean quantum of penalty deleted or reduced in order to be appealed against. At para 13 of above Circular, it has been mentioned that: 13. This Circular will apply to SLPs/appeals/cross objection/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. 4. As step towards further management of litigation, CBDT vide Circular No. 17/2019 has fixed monetary limit for filing of appeals before ITAT at Rs.50,00,000/-. 5. In instant appeal filed by Department, amount in dispute before CIT(A) was Rs.98,35,695/-. tax effect on above is below monetary limit of Rs.50,00,000/-. same was brought to notice Shri Mitleshh I Gadhia 3 ITA No. 1613/Mum/2017 of Ld. Departmental Representative (DR) and Ld. counsel for assessee. 6. Before us, Ld. DR submits that liberty may kindly be given to raise, after necessary further verification, and to seek recall dismissal of appeal and restoration of appeal in case it can be shown that appeal is covered by exceptions. 7. We agree with above contentions of Ld. DR and make it clear that appellant shall be at liberty to point out exceptions and we will take appropriate remedial measures in this regard. 8. With above observations, this appeal involving tax effect of less than Rs.50,00,000/- is dismissed as withdrawn. Order pronounced in open Court on 06/09/2019. Sd/- Sd/- (RAVISH SOOD) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 06/09/2019 Rahul Sharma Sr,P.S. Copy of Order forwarded to : 1. Appellant 2. Respondent. 3. CIT(A)- 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER, //True Copy// (Sr. Private Secretary) ITAT, Mumbai Deputy Commissioner of Income-tax, Central Circle 4(2), Mumbai Central Range-4 Pr. CIT (C) -2, Mumbai v. Miteshh I Gadhia