Deputy Commissioner of Income-tax, Circle-17(1), New Delhi v. Modi Industries Ltd
[Citation -2019-LL-0930-86]

Citation 2019-LL-0930-86
Appellant Name Deputy Commissioner of Income-tax, Circle-17(1), New Delhi
Respondent Name Modi Industries Ltd.
Court ITAT-Delhi
Relevant Act Income-tax
Date of Order 30/09/2019
Assessment Year 2013-14
Judgment View Judgment
Keyword Tags tax effect • monetary limit
Bot Summary: Now there is a latest CBDT Circular No.17/2019 dated 8th August, 2019, wherein the CBDT has further enhanced the monetary limit for filing of appeal by the Department before the Income Tax Appellate Tribunal from Rs.20 lacs to Rs.50 lacs. The said circular also make reference to the earlier Circular No.3 of 2018 dated 11.07.2018 and specially states that as a step towards further management of litigation, the Board has decided to enhance the monetary limit for filing of the appeals. For the sake of ready reference, the latest circular is reproduced hereunder: F. No. 279/Misc. I.T.A. No.2716/DEL/2017 3 Reference is invited to the Circular No. 3 of 2018 dated 11.07.2018 of Central Board of Direct Taxes and its amendment dated 20th August 2018 vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court have been specified. 2 As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Further, with a 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 the circular is substituted by the following para: 5. The said modifications shall come into effect from the date of issue of this Circular.


IN INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.2716/DEL/2017 Assessment Year: 2013-14 Deputy Commissioner of vs. M/s. Modi Industries Ltd., Income Tax, New Delhi. Circle-17(1), New Delhi. TAN/PAN: AAACM2063Q (Appellant) (Respondent) Appellant by: Ms. Deepashree Rao, CA Respondent by: Smt. Paramita M. Biswas, CIT-D.R. Date of hearing: 30 09 2019 Date of pronouncement: 30 09 2019 ORDER PER AMIT SHUKLA, JM aforesaid appeal has been filed by Revenue against impugned order dated 05.01.2017 passed by Commissioner of Income Tax (Appeals)-XXXIX, New Delhi for Assessment Year 2013-14. 2. At outset, it has been pointed out by ld. counsel that tax effect on disputed issue raised in Revenue s Appeal is much below Rs.50 lac, and therefore, in view of new CBDT Circular No.17/2019, appeal of Revenue is not maintainable. I.T.A. No.2716/DEL/2017 2 3. Ld. DR did not dispute that tax effect on disputed issue is less than Rs.50 lac. 4. Now there is latest CBDT Circular No.17/2019 dated 8th August, 2019, wherein CBDT has further enhanced monetary limit for filing of appeal by Department before Income Tax Appellate Tribunal from Rs.20 lacs to Rs.50 lacs. said circular also make reference to earlier Circular No.3 of 2018 dated 11.07.2018 and specially states that as step towards further management of litigation, Board has decided to enhance monetary limit for filing of appeals. This circular is not in supersession of earlier circular but only amends monetary limits as well as gives clarification with regard to paragraph 5 of earlier circular. This inter alia means that all other conditions mentioned in earlier Circular No.3 of 2018 dated 11.07.2018 will apply mutatis mutandis including that is, it will apply to all pending appeals. For sake of ready reference, latest circular is reproduced hereunder: F. No. 279/Misc. 142/2007-ITJ(Pt.) Government of India Ministry of Finance Department of Revenue Central Board Direct Taxes Judicial Section New Delhi 8th August 2019 Subject: - Further Enhancement of Monetary limits for filing of appeals by Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation. I.T.A. No.2716/DEL/2017 3 Reference is invited to Circular No. 3 of 2018 dated 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment dated 20th August 2018 vide which monetary limits for filing of income tax appeals by Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court have been specified. Representation has also been received that anomaly in said circular at para 5 may be removed. 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 matters Monetary Limit (Rs.) l. 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/judgment involves more than one assesse, each assesse 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. I.T.A. No.2716/DEL/2017 4 5. Thus, in view of aforesaid circular, appeal of Revenue is dismissed as non maintainable because tax effect is below Rs.50 lakhs. 6. In result, appeal filed by Revenue is dismissed. Order pronounced in open Court on 30th September, 2019. Sd/- Sd/- [ANADEE NATH MISSHRA] [AMIT SHUKLA] [ACCOUNTANT MEMBER] JUDICIAL MEMBER DATED: 30th September, 2019 PKK: Deputy Commissioner of Income-tax, Circle-17(1), New Delhi v. Modi Industries Ltd
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