The Tribunal disposed of the Income Tax Department's appeal against a lower decision by relying on CBDT Circular No. 17/2019, which enhanced monetary limits for departmental appeals to reduce litigation.
The appeal is disposed of without interfering with the order of the Appellate Tribunal.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
I.T.A. No. 225 of 2004
Heard learned Sr. Standing Counsel and learned Jr. Standing Counsel for the appellant-Income Tax Department.
“Circular No. 17/2019
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 the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court –Amendment to Circular 3 of 2018- Measures for reducing litigation.
Reference is invited to the 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
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of income tax appeals by the Department before Income Tax Appellate Tribunal,. High Courts and SLPs/appeals before Supreme Court have been specified. Representation has also been received that an anomaly in the said circular at para 5 may be removed.
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. | Appeals/ SLPs in Income- tax matters |
Monetary Limit (Rs.) |
|---|---|---|
| 1. | BeforeAppellateTribunal | 50,00,000 |
| 2. | BeforeHighCourt | 1,00,00,000 |
| 3. | Before Supreme Court | 2,00,00,000 |
3. 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 Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. 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 disputed issues exceeds the monetary limit specified in para 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. Further, even in the 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 an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/ judgment involves more than one assessee, each assessee shall be dealt with separately.”
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4. The said modifications shall come into effect from the date of issue of this Circular.
5. The same may be brought to the notice of all concerned.
6. This issues under section 268A of the Income-tax Act.1961.
7. Hindi version will follow .
(Neetika Bansal) Director, (ITJ) CBDT, New Delhi”
.…….......………………
( K.S. Jhaveri ) Chief Justice
…………………..………
( K. R. Mohapatra) Judge
mp
1 issue framed by the court
Whether Income Tax appeals against Tribunal orders exceeding specified monetary limits fall within the ambit of Circular No. 17/2019.
1 provisions across 1 enactments
Income Tax Department
Assessee
K.S. Jhaveri
K. R. Mohapatra
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
