INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Maintainability - Low tax effect -

Revenue filed an appeal before Tribunal. Assessee contended that the said appeal was not maintainable in view of Circular No. 17/2019, dt. 8-8-2019 issued by CBDT wherein the monetary limit for filing the appeals by the Department before the Tribunal has been increased to Rs. 50,00,000 from Rs. 20,00,000. Revenue contended that the Circular No. 17/2019, dt. 8-8-2019 would not be applicable to its appeal being prospective in nature. Held: It was an admitted fact that the CBDT vide Circular No. 17/2019 enhanced the monetary limit to Rs. 50,00,000 for filing the appeal by the Department before the Tribunal; earlier the said limit was specified at Rs. 20,00,000 in the original Circular No. 03/2018 dt. 11-7-2018. Further, the amended Circular No. 17/2019 would also be applicable to the pending appeals as has been specified in the original Circular No. 3/2018 dt. 11-7-2018 and that the Department ought not to have filed the appeals before the ITAT where the tax effect is less than Rs. 50,00,000. Therefore, as tax effect involved in appeal filed by Revenue before Tribunal was less than Rs. 50,00,000, in view of CBDT Circular No. 17/2019, the said appeal would not be maintainable on account of low tax effect.

REFERRED : ITO, Ward-3(2) Ahmedabad v. Dinesh Madhavlal Patel, Ahmedabad & Ors. ITA No. 1398/Ahd/2004 for the assessment year 1998-99 : 2019 TaxPub(DT) 5093 (Ahd-Trib)

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT