IN INCOME TAX APPELLATE TRIBUNAL BENCH: CHENNAI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I.T.A.No.867/Chny/2018 Assessment year 2015-16 Assistant Commissioner of Vs. Shri E.Anandan, Income Tax, 112,Gopal Layout, Central Circle-(2), Ponniayarajapuram, Income Tax Building, Coimbatore. 641 001. Race Course Road, Coimbatore 641 018. [PAN ACBPA4940L ] (Appellant) (Respondent) ./I.T.A.No.525/Chny/2019 Assessment year :2013-14 Income Tax Officer, Vs. M/s.Sumeru Media and Non Corporate Ward-20(5), Communication Private Ltd, Chennai 600 034 16/50,Capital Place, South Bang road, T.Nagar, Chennai 600 017 [PAN AAHCS4275R] (Appellant) (Respondent) Appellant by Mr.Arunraj, JCIT,D.R Respondent by Mr.S.Sridhar,Advocate Date of Hearing 26.09.2019 Date of Pronouncement 26.09.2019 ITA No.867/Chny/2018 ITA No.525/Chny/2019 ORDER PER BENCH These two appeals are filed by Assessing Commissioner of Income Tax, Coimbatore, these appeals call into question correctness of relief granted to taxpayers by Commissioners of Income Tax (Appeals) and, most importantly, tax effect involved in this appeal does not exceed Rs.50,00,000/-. 2. Vide CBDT circular No.17/2019 in F.No.279/Misc.142/2007-ITJ(Pt) dated 8th August, 2019, income tax department has further liberalized its policy for not filing appeals against decisions of appellate authorities in favour of taxpayers, 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. In view of above factual background and concession by this CBDT circular, this appeal must be dismissed as withdrawn and related cross objections must be dismissed as infructuous. 4. This circular, only enhances monetary limits and gives further relaxation. old circular, beyond any dispute or controversy, :2: ITA No.867/Chny/2018 ITA No.525/Chny/2019 categorically applied to pending appeals as on date of issuance of circular. 5. 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 8thAugust 2019: 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. Appeals/SLPs in Income-tax matters Monetary Limit No (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 everyassessee. If in case of assessee, disputed issues arise :2: ITA No.867/Chny/2018 ITA No.525/Chny/2019 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. 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. :2: ITA No.867/Chny/2018 ITA No.525/Chny/2019 7. 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 . 8. Learned Commissioner (DR) 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. :2: ITA No.867/Chny/2018 ITA No.525/Chny/2019 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 these two appeals filed by Revenue are found to be non-maintainable. 10. In result, these two appeals filed by Revenue are dismissed as withdrawn. Pronounced in open court after conclusion of hearing on 26th September, 2019. Sd/- Sd/- (INTURI RAMA RAO) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Chennai, 3 Dated 26th September, 2019. Copy to 1. Appellant 4. 7 CIT 2. Respondent 5. 5 , DR 3. CIT(A) 6. GF Assistant Commissioner of Income-tax, Central Circle-(2), Coimbatore v. E. Anandan