The ACIT, Exemption Circle, Patna v. Millat Educational Society
[Citation -2019-LL-0916-38]

Citation 2019-LL-0916-38
Appellant Name The ACIT, Exemption Circle, Patna
Respondent Name Millat Educational Society
Court ITAT-Patna
Relevant Act Income-tax
Date of Order 16/09/2019
Assessment Year 2004-05
Judgment View Judgment
Keyword Tags monetary limit • tax effect
Bot Summary: At the outset, we find that the tax effect in the present appeal of the Revenue is less than Rs.50 lakhs and in view of CBDT Circular No.17/2019 dated 8th August, 2019, the appeal of the revenue is not maintainable. Having considered the rival submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now. If in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputedissuesexceedsthemonetarylimitspecifiedinpara 3.No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In view of the above discussions, we hereby hold that the relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8thAugust 2019(supra) shall be applicable to the pending appeals in addition to the appeals to be filed henceforth. Learned Commissioner then submits liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeals and restoration of the appeals in the cases in which it can be demonstrated that the appeals are covered by the exceptions, andwhich are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular, exceeds Rs 50,00,000. As the appeals filed by the Revenue are found to be non-maintainable and as all the related cross- objections of the assessee arise only as a result of those appeals and merely support the order of the CIT(A), the cross objections filed by the assessee are also dismissed as infructuous. After considering the submission of ld D.R. and keeping in view the order dated 14.8.2019 of the ITAT Ahmedabad Bench in the case of Dinesh Mudhavlal Patel, we are of the view that the relaxation in the monetary limit in departmental appeals vide circular dated 8 th August, 2019 shall be applicable to the pending appeals in addition to the appeals to be filed henceforth.


IN INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA BEFORE SHRI CHANDRA MOHAN GARG, JM & SHRI L.P. SAHU, AM ./ITA No.280/PAT/2018 (Assessment Year 2004-2005) ACIT, Exemption Circle, Vs. M/s Millat Educational Patna Society, Mariam Manzil,Anisabad, Patna PAN No. AAAAM2037J (Appellant) (Respondent) Assessee by None /Revenue by Shri Supriya Biswas, JCIT-DR Date of Hearing 16/09/2019 16/09/2019 Date of Pronouncement ORDER Per Bench This appeal is filed by Revenue against order passed by learned CIT(A)-1, Patna, dated 30.08.2018 for assessment year 2004-2005. 2. None appeared on behalf of assessee even case was called for second round of hearing. Therefore, we proceeded to dispose off appeal of Revenue after considering submissions of ld.DR and material evidence available on record. 3. At outset, we find that tax effect in present appeal of Revenue is less than Rs.50 lakhs and, therefore, in view of CBDT Circular No.17/2019 dated 8th August, 2019, appeal of revenue is not maintainable. 2 ITA No.280/PAT/2018 4. Ld. DR also fairly conceded that no doubt tax effect involved in appeal is less than Rs.50 lakhs, thus, bound by Departmental Instruction, however, ld. DR drew our attention to para 10 of Circular No.3/2018, dated 11th July, 2018, which has been modified by Circular dated 20th August, 2018 and in terms of said modification, Departmental Representatives made prayer that permission to pray for recall of order may be granted in case any of conditions in reports made available by AO subsequently show that issues were required to be contested. modified para is extracted hereunder: 10. Adverse judgments relating to following issues should be contested on merits notwithstanding that tax effect entailed is less than monetary limits specified in para 3 above or there is no tax effect: (a) Where Constitutional validity of provisions of Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in case has been accepted by Department, or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account. (e) Where addition is based on information received from external sources in nature of law enforcement agencies such as CBI/ED/DRI/SFIO/ Directorate General of GST Intelligence (DGGI). (f) Cases where prosecution has been filed by Department and is pending in Court. 5. Earlier in Circular No.3/2018, dated 11th July, 2018, it has been decided by CBDT that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/appeals before Supreme Court keeping in view monetary limits and conditions specified below. Henceforth, appeals/SLPs shall not be filed in cases where tax effect does not exceed monetary limits given hereunder: 3 ITA No.280/PAT/2018 S. No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000 6. Further, CBDT amended above Circular vide Circular No.17/2019, dated 8th August, 2019, whereby enhancing monetary limits for filing of appeals by Department before Income Tax Appellate Tribunals, High Courts and SLPs/appeals before Supreme Court as under :- 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 7. Going by prescription of amended Circular No. 17/2019, dated 8th August, 2019, we are of view that Revenue should have either not filed instant appeal before Tribunal or withdrawn same as tax effect in appeal is admittedly less than prescribed limit, i.e., Rs. 50,00,000/- for not filing appeal, which is not maintainable as per provisions of Section 268A of Income Tax Act, 1961. 8. coordinate bench of Tribunal in ITA No.1398/Ahd/2004, order dated 14.08.2009 has dismissed appeals filed by Revenue below monetary limit of Rs.50,00,000/- as prescribed by CBDT vide Circular No.17/2019, dated 8th August, 2019. relevant observations of Tribunal are as under :- 5. Having considered rival submissions and having perused material on record, we do not have slightest of hesitation in holding that concession extended by CBDT not only applies to appeals to be filed in future but it is also equally applicable to appeals pending for disposal as on now. Our line 4 ITA No.280/PAT/2018 of reasoning is this. circular dated 8thAugust 2019 is not standalone circular. It is to be read in conjunction with CBDT circular no 3 of 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 8thAugust2019: 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 Para3 of Circular shall read as follows: Appeals/SLPs in Income-tax Monetary Limit S.No. matters (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. para5 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 disputedissuesexceedsthemonetarylimitspecifiedinpara 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 ITA No.280/PAT/2018 6. 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: 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. 7. In view of above discussions, we hereby hold that relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8thAugust 2019(supra) shall be applicable to pending appeals in addition to appeals to be filed henceforth. 8. Learned Commissioner (DR) then submits 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 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 appellants shall 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 light of above discussions, all appeals stand dismissed as withdrawn. As appeals filed by Revenue are found to be non-maintainable and as all related cross- objections of assessee arise only as result of those appeals and merely support order of CIT(A), cross objections filed by assessee are also dismissed as infructuous. Ordered, accordingly. 9. Ld D.R. submitted that as per para 4 of CBDT Circular No.17/2019 dated 8th August, 2019, modifications shall come into effect from date of this issue of this Circular i.e. 8.8.2019. Therefore, it is not applicable to pending appeals. 6 ITA No.280/PAT/2018 10. After considering submission of ld D.R. and keeping in view order dated 14.8.2019 of ITAT Ahmedabad Bench in case of Dinesh Mudhavlal Patel (supra), we are of view that relaxation in monetary limit in departmental appeals vide circular dated 8 th August, 2019 shall be applicable to pending appeals in addition to appeals to be filed henceforth. Thus, contention of ld D.R. is dismissed. 11. Accordingly, we dismiss appeal filed by Revenue without going into merits of case. However, it is made clear that Department is at liberty to file Miscellaneous Application, if tax effect is found to be more than prescribed limit of Rs.50,00,000/- as per amendment carried out by CBDT in Circular No.17/2019, dated 8th August, 2019, or any of conditions etc. as available in amended para 10 of Circular No.3/2018, dated 20th August, 2018. Accordingly, appeal of Revenue deserves to be dismissed. 12. In result, appeal of Revenue is dismissed. Order pronounced in open court on 16/09/2019. Sd/- Sd/- (L.P.SAHU) (C.M.GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Patna Dated 16/09/2019 Prakash Kumar Mishra, Sr.P.S. Copy of Order forwarded to 1. Appellant- 2. Respondent- 3. CIT(A), 4. CIT 5. DR, ITAT, Patna 6. Guard file. BY ORDER, (Senior Private Secretary) , ITAT, Patna ACIT, Exemption Circle, Patna v. Millat Educational Society
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