September 2019

CBDT circular dated 8th August, 2019 – The relaxation in monetary limits for departmental appeals vide CBDT circular dated 8th August, 2019 shall be applicable to the pending appeals in addition to the appeals to be filed henceforth

Jagdish T.Punjabi | Devendra Jain | Tejaswini Ghag
Chartered Accountants

28.  [2019] 108 taxmann.com 211 (Ahd. – Trib.) ITO vs. Dinesh Madhavlal Patel ITA No.: 1398/Ahd./2004 A.Y.: 1998-99 Date of order: 14th August, 2019;

 

CBDT circular dated 8th August, 2019 – The relaxation in monetary limits for departmental appeals vide CBDT circular dated 8th August, 2019 shall be applicable to the pending appeals in addition to the appeals to be filed henceforth

 

FACTS

The Tribunal vide its order disposed of the present appeal and 627 other appeals filed by various AOs challenging the correctness of the orders passed by CIT(A) and also cross-objections filed by the assessees against the said appeals of the Revenue supporting the orders of the CIT(A). The tax effect in each of these appeals is less than Rs. 50 lakhs.

 

The Tribunal noted that vide CBDT circular dated 8th August, 2019 the income tax department has further liberalised its policy for not filing appeals against the decisions of the appellate authorities in favour of the taxpayers where the tax involved is below certain threshold limits, and announced its policy decision not to file, or press, the appeals before the Tribunal against appellate orders favourable to the assessees – in cases in which the overall tax effect, excluding interest except when interest itself is in dispute, is Rs. 50 lakhs or less.

 

Following the said circular, the Tribunal sought to dismiss all the appeals. However, while dismissing the appeals, the DR pointed out that the said circular is not clearly retrospective because in para 4 it says, "(t)he said modifications shall come into effect from the date of issue of this circular”. Relying on this, the argument sought to be made was that the limits mentioned in the circular dated 8th August, 2019 will apply only to appeals to be filed after the date of the said circular. The representatives of the assessees, however, argued that the circular must be held to have retrospective application and must equally apply to the pending appeals as well. It was subm

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