INCOME TAX ACT, 1961

Section 253

Appeal (Tribunal) - Maintainability - Low tax effect - Whether CBDT circular dated 8-8-2019 would be applicable to pending appeals

Aggrieved by order of CIT(A), Revenue preferred an appeal. Tribunal was of the view that the said appeal would not be maintainable on the ground that tax effect involved in such appeal was below the threshold limit provided in CBDT Circular dated 8-8-2019. Revenue took the view that relaxation in monetary limits for departmental appeals, vide CBDT Circular, dated 8-8-2019 would not be applicable to pending appeals.Held:The concession in monetary limits extended by CBDT vide its Circular, dated 8-8-2019 not only applies to appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now as the Circular, dated 8-8-2019 is not a standalone circular and it is to be read in conjunction with the CBDT Circular No. 3 of 2018 (and subsequent amendment thereto). Therefore, as tax effect involved in appeal preferred by Revenue was below the threshold limit provided in CBDT Circular, dated 8-8-2019, the same would not be maintainable on account of low tax limit.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 1998-99

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