INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER I.T.A No. 2546/Del/2013 Assessment Year: 2006-07 ACIT, Vs. Fragrance Construction (P) Ltd., Central Circle - 23, M-11, MIddle Circle, New Delhi Connaught Place, New Delhi. PAN: AAACF1922H I.T.A No. 3146/Del/2014 Assessment Year: 2009-10 Income-tax Officer, Vs. Ester India Chemicals (P) Ltd., Ward -11(2), E-593, Greater Kailash-II, New Delhi New Delhi. PAN: AAACE1280F I.T.A No. 6889/Del/2015 Assessment Year: 2007-08 ACIT, Vs. Believe Developers & Promoters Central Circle - 14, (P) Ltd., Flat No.4, R.R. Apartment, New Delhi 3-4 Manglapuri, Mehrauli, New Delhi. PAN: AACCB4635P T.A No. 6891/Del/2015 Assessment Year: 2008-09 ACIT, Vs. Shri Gaurav Gauba, Central Circle - 14, H.No.29, 1st Floor, New Delhi Sector -15, Phase-1, Gurgaon. PAN: AIZPG2182J (Appellant) (Respondent) Revenue by : Shri Raja Ram Sah, CIT DR Assessee by: Sh. Pradeep Kaushik, ITA No.2546/13 Sh. Mukul Gupta, ITA No.3146/14 Sh. Lalit Mohan,ITA Nos. 6889 & 6891/15 Date of Hearing 12.09.2019 Date of pronouncement 12/09/2019 Page | 1 ORDER PER BENCH These appeals filed by Department against orders of ld Commissioner of Income-tax (Appeals){ CIT(A ), New Delhi. 2. At outset of hearing itself, ld. DR brought to our attention that CBDT vide Circular No. 17/2019 dated 08th August 2019 has decided that revenue would not prefer any appeal before Tribunal if tax effect is less than Rs. 50 lakhs. Therefore, he pleaded that appeals of revenue be decided as per Instruction of CBDT. 3. We have heard contention and perused material on record. We find that CBDT vide Circular No. 17/2019 dated 08 th August 2019 has enhanced monetary limit for filing appeal by department before Income Tax Appellate Tribunal, Hon ble High Courts and Hon ble Supreme Court. relevant para of aforesaid circular is reproduced as under :- 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 Monetary Limit (Rs.) matters 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: Page | 2 "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 y ears 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/ judgment 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. same may be brought to notice of all concerned. 6. This issues under section 268A of Income-tax Act, 1961. 4. We find that tax effect involves in these appeals of Revenue are below Rs. 50 lakhs. There is no dispute that Board s instructions or directions issued to Income-tax authorities are binding on those authorities, therefore, Department should have withdrawn/not pressed present appeal in view of aforesaid instruction since tax effect in instant appeal is less than amount of Rs. 50 lakhs. issue of applicability of above circular to pending appeals has been decided by coordinate bench in Dinesh Madhavlal Patel [TS-469-ITAT-2019(Ahd)] 2019-TIOL-1556-ITAT-AHM dated 14th August, 2019 . 5. In view of above, Circular No. 17/2019 dated 08/08/2019 will apply to all pending appeals. Therefore precedent, it is held that appeal is not maintainable in instant case as tax effect is less than Rs. 50 lakhs. Accordingly, it is held that appeals filed by revenue are not maintainable. We also hastened to add that certain times instances stated in para No. 10 of CBDT Circular No. 3/2018 dated 11.07.2018 is not discernable from assessment and appellate orders, therefore, in such cases, we also give liberty to revenue that if such instances comes to their notice than, revenue may file miscellaneous application with such evidences. Page | 3 6. In result, all four appeals filed by department are dismissed. Order pronounced in open court on 12/09/2019. Sd/- sd/- (B.R.R. KUMAR) (K. NARASIMHA CAHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 12th September, 2019 VJ Copy forwarded to 1. Appellant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Page | 4 Date of dictation 12.9.2019 Date on which typed draft is placed before dictating 12.9.2019 member Date on which typed draft is placed before other member Date on which approved draft comes to Sr. PS/ PS Date on which fair order is placed before dictating member for pronouncement Date on which fair order comes back to Sr. PS/ PS Date on which final order is uploaded on website of ITAT date on which file goes to Bench Clerk Date on which file goes to Head Clerk date on which file goes to Assistant Registrar for signature on order Date of dispatch of order Page | 5 ACIT, Central Circle-23, New Delhi v. Fragrance Construction (P) Ltd