Revised monetary limit of Rs. 50 lacs shall apply retrospectively to pending appeals also

Last updated: 13 July 2021

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This judgement confirms that the revised monetary limit of Rs. 50 lacs for appeals, as set out in CBDT Circular No. 17/2019, applies retrospectively. This means the limit is applicable to appeals that were already pending. Consequently, the revenue's appeal was dismissed due to the low tax effect, without considering the case's merits.

Court :
ITAT Delhi

Brief :
This appeal is filed by the Revenue against order dated 30/08/2017 passed by CIT(A)-New Delhi for assessment year 2012-13.

Citation :
I.T.A. No. 6598/DEL/2017 (A.Y 2012-13)

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘G’ NEW DELHI

BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
I.T.A. No. 6598/DEL/2017 (A.Y 2012-13)
(THROUGH VIDEO CONFERENCING)

ITO
Ward-77(2)
Room No. 411A, Aayakar Bhawan,
Laxmi Nagar District Centre,
New Delhi
AACCN9704F
(APPELLANT)

Shriram Educorp Ltd.
NBCC Place, Lodhi Road,
New Delhi
(RESPONDENT)

Appellant by Sh. Prakash Dubey, Sr. DR
Respondent by Sh. Rajnish Agarwal, CA

Date of Hearing 01.07.2021
Date of Pronouncement 01.07.2021

ORDER

PER SUCHITRA KAMBLE, JM

This appeal is filed by the Revenue against order dated 30/08/2017 passed by CIT(A)-New Delhi for assessment year 2012-13.

2. At the outset, it was brought to our notice that the tax effect involved in this appeal being less than Rs. 50 lacs, squarely falls within the ambit of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes prescribing the tax effect for preferring appeals before Tribunal by the revenue and subsequent clarification issued by CBDT on 20th August, 2019.

3. After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 17/2019 dated 08.08.2019 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 17/2019 dated 08.08.2019 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We find that the subsequent clarification dated 20.08.2019 makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. The Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserve to be dismissed on account of low tax effect vide Circular No. 17/2019 dated 08.08.2019 and subsequent clarification on 20.08.2019. Accordingly, on account of low tax effect case, we dismiss this appeal of revenue in limine, without going into the merits of the case.

4. In the result, appeal of the Revenue is dismissed.

Order pronounced in the Open Court in presence of both the parties on this 01st Day of July, 2021.

Sd/- Sd/-
(PRASHANT MAHARISHI) (SUCHITRA KAMBLE)
ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated: 01 /07/2021
R. Naheed *

Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT

ASSISTANT REGISTRAR
ITAT NEW DELHI

FAQ :

The judgement rules that the revised monetary limit of Rs. 50 lacs for preferring appeals, as per CBDT Circular No. 17/2019, applies retrospectively to pending appeals.

The tax effect in this appeal was less than Rs. 50 lacs, which fell within the revised monetary limit set by the CBDT.

The revenue's appeal was dismissed in limine (at the outset) because the tax effect was below the Rs. 50 lacs limit, making it ineligible to be heard on its merits.

Yes, a clarification issued by the CBDT on 20th August 2019 explicitly states that the revised monetary limits shall apply retrospectively to pending appeals.

Yes, the judgement notes that CBDT circulars are binding on tax authorities.