Income Tax Officer Ward-4 , Shivamogga V. M/s Preadith Consultancy , Shivamogga

ITA 266/BANG/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0557 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 14-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ORS PAGE OF
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER SL. NO . ITA / CO NO. A.Y. APPELLANT / CROSS OBJECTOR RESPONDENT 1 2 3 53/ BANG/2018 55/BANG/2018 57/BANG/2018 2002-03 2003-04 2004-05 THE . COMMISSIONER OF WEALTH TAX, CIRCLE 6(3)(1), BENGALURU. SHRI ASHOK KUMAR KARTHA, ERSTWHILE HUF OF LATE SRI ANJANAMURTHY, #24, ANJANMURTHY BUILDING, LOTTEGOLLAHALLI, RMV 2 ND STAGE, BENGALURU-560 094. PAN AAIHA 8964 K 4 266/ BANG/2019 2008-09 THE INCOME TAX OFFICER, WARD 4, SHIVAMOGGA. M/S PREDITH CONSULTANCY, G.R PRABHU ARCADE, 1 ST CROSS, J.P.N ROAD, SHIVAMOGGA. PAN AADFP 3946 R 5 280/ BANG/2017 2009-10 THE INCOME TAX OFFICER, WARD - 3, TUMAKURU. M/S SACRED HEART SOUHARD CREDIT CO- OPERATIVE LTD., OUR LADY OF LORDS CHURCH, HORPET, TUMAKURU-572 102. PAN AAJS 3139 G 6 908/ BANG/2018 2011-12 THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(1), BENGALURU. SHRI CHANDRASHEKAR BHAT, NO.70, 5 TH B CROSS, NARAYANAPPA LAYOUT, RT NAGAR, BENGALURU-560 032. PAN ADOPB 9307 L ITA NOS.53/BANG/2018 AND ORS. PAGE 2 OF 12 7 8 911/ BANG/2018 912/BANG/2018 2008-09 2009-10 THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(4), BENGALURU. M/S LAKSHMISREE COMBINES PVT. LTD., NO.30/1, 5 TH MAIN ROAD, GANDHINAGAR, BENGALURU-560 009. PAN - AABCL 2073 Q 9 10 1098/ BANG/2019 1099/BANG/2019 2012-13 2014-15 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(1), BENGALURU. M/S ASHA BUSINESS CENTRE PVT. LTD., #1, ASHA ARCH MAGRATH ROAD, ASHOK NAGAR, BENGALURU-560 025. PAN AACCA 3762 A 11 1128/ BANG/20169 2006-07 THE INCOME TAX OFFICER, WARD - 5(2)(4), BENGALURU. SMT. LAKSHMI NAGARAJU, NO.27/8, MARUTHI NILAYA, 3 RD MAIN, HANUMANTHANAGAR, BENGALURU-560 019. PAN ADGPN 5439 H 12 1230/ BANG/2019 2011-12 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 7(2)(1), BENGALURU. N.R KUMARASWAMY, NO.15, NEW D SOUZA LAYOUT, HOSAKEREHALLI, BSK 3 RD STAGE, BENGALURU-560 085. PAN ALWPK 3713 D 13 1241/ BANG/2013 2003-04 THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(1), BENGALURU. M/S AVASARALA TECHNOLOGIES LTD., (ERSTWHILE M/S ELBEAM DEVICES LTD.,) #47, 36 TH MAIN ROAD, BTM LAYOUT, 1 ST STAGE, BENGALURU-560 068. PAN AABCA 2381 E ITA NOS.53/BANG/2018 AND ORS. PAGE 3 OF 12 14 1311/ BANG/2019 2011-12 THE INCOME TAX OFFICER, WARD-6(2)(4), BENGALURU. M/S BEL KARNATAKA KARMIKARA HITARAKSHANA SAMITHI, NO.77/3, JALAHALLI POST BENGALURU-560 013. PAN AAAAB 2550 P 15 1314/ BANG/2016 2015-16 THE INCOME TAX OFFICER, WARD-2, HAVERI M/S NAVAJEEVAN FOUNDATION ALIAS NAVAJEEVAN MUTUAL BENEFIT TRUST, MALI COMPOUND, 3 RD CROSS, SHIVABASAVANAGAR, HAVERI PAN AABTC 1232 D 16 1406/ BANG/2019 2012-13 THE INCOME TAX OFFICER, WARD-3(2)(4), BENGALURU. M/S TIRUPATHI ENTERPRISES, NO.315, 8 TH CROSS, LAKSHMI ROAD, SHANTHINAGAR, BENGALURU-560 027. PAN AADFT 9556 H 17 1551/ BANG/2019 2016-17 THE DY. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE 1, MANGALURU. M/PWD LABOUR SUPPLY SOCIETY, GROUND FLOOR, PWD OFFICE ALTINHO, PANAJI, GOA. PAN AAAAA 4568 P 18 2067/ BANG/2016 2005-06 THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 6(3)(1), BENGALURU. SMT. V SABITA, NO.88, KAVALBYARASANDRA, RT NAGAR POST, BENGALURU-560 032. PAN AKFPS 1909 R ITA NOS.53/BANG/2018 AND ORS. PAGE 4 OF 12 APPELLANTS BY : DR. SHANKAR PRASAD K , ADDL. CIT, RESPONDENTS BY : MS/S/SHRI NARENDRA SHARMA, ADVOC ATE, PRASHANTH G.S, C.A, V CHANDRASHEKAR, ADVOCATE, RAKESH C.R, C.A, KASHINATH, ADVOCATE DATE OF HEARING : 12.09.2019 DATE OF PRONOUNCEMENT : 16.09.2019 O R D E R PER BENCH: THESE ARE APPEALS BY THE REVENUE AND ARE DIRECTED AGAINST THE RESPECTIVE ORDERS OF THE CIT(APPEALS). ALL THESE AP PEALS CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE T AXPAYERS BY THE COMMISSIONERS OF INCOME TAX (APPEALS) AND, MOST IMP ORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT E XCEED RS.50,00,000/- IN EACH OF THESE APPEALS. IN THESE C ASES, INDIVIDUAL NOTICES TO THE ASSESSEES ARE DISPENSED WITH; NOTICE S OF HEARING ARE GIVEN ONLY THROUGH THE NOTICE BOARD TO THE ASSESSEE S AND THE OFFICE OF THE DR WAS GIVEN NOTICE OF LIST OF THESE APPEALS . 2. IN THE LIGHT OF THE CBDT CIRCULAR DATED 8.8. 2019, ALL THESE APPEALS OF THE REVENUE HAVE TO BE DISMISSED, AS THE TAX EFFECT INVOLVED IN THE QUANTUM IN DISPUTE IN ALL THESE APP EALS ARE LESS THAN RS.50 LACS. THOUGH THE DR ATTEMPTED TO POINT OUT THAT SOME CLARIFICATIONS ARE REQUIRED ON SOME OF THE APPEALS TO FIND OUT THE TAX EFFECT, YET WE ARE OF THE VIEW THAT IF LIBERTY IS G IVEN TO THE REVENUE TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AN D TO SEEK RECALL THE ORDERS OF DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS, ITA NOS.53/BANG/2018 AND ORS. PAGE 5 OF 12 THEN THE GRIEVANCE OF THE REVENUE WOULD BE ADDRESSE D. SIMILARLY, IF THE REVENUE CAN DEMONSTRATE THAT THE APPEALS ARE CO VERED BY THE EXCEPTIONS, AND ARE INADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT IS LESS THAN RS.50.00 LAKHS IN TERMS OF THE CBDT CIRCULAR (SUPRA), IN THAT EVENT ALSO, THE REVE NUE CAN APPLY FOR RECALL OF THE ORDER IN SUCH APPEALS. THE ITAT AHM EDABAD A BENCH, IN THE CASE OF ITO WARD 3 (2), AHMEDABAD VS. DINESH MADHAVLAL PATEL AND 627 OTHER APPEALS VIDE ITS ORDER DATED 14.8.2019 AND COORDINATE BENCH IN THE CASE OF M/S C ENTURY REAL ESTATE HOLDINGS PVT. LTD., AND 170 OTHER APPEALS VI DE ITS ORDER DATED 28/08/2019 HAS ANALYZED THE AFORESAID CIRCULA R OF CBDT AND HAS DISMISSED THE APPEALS OF THE REVENUE ON THE GROUND THAT THE TAX EFFECT IN THE SAID APPEALS WAS BELOW RS.50 LACS. THE FOLLOWING WERE THE RELEVANT OBSERVATIONS OF THE TRI BUNAL. 2. IT IS IN THIS BACKDROP THAT WE ARE PLEASED TO T AKE NOTE OF A VERY PRAGMATIC AND TAXPAYER FRIENDLY POLICY DECISIO N BY THE GOVERNMENT OF INDIA FOR REDUCING THE INCOME TAX LIT IGATION. VIDE CBDT CIRCULAR DATED 8TH AUGUST, 2019, THE INCO ME TAX DEPARTMENT HAS FURTHER LIBERALIZED ITS POLICY FOR N OT FILING APPEALS AGAINST THE DECISIONS OF THE APPELLATE AUTH ORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BE LOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINS T THE APPELLATE ORDERS FAVOURABLE TO THE ASSESSEE IN THE CASES IN WHICH OVERALL TAX EFFECT, EXCLUDING INTEREST-EXCEPT WHEN INTEREST ITSELF IS IN DISPUTE, IS RS 50,00,000 OR L ESS. WHAT IT MEANS, IN PLAIN WORDS, IS THAT WHEN A COMMISSIONER (APPEALS) GIVES THE TAXPAYER TAX RELIEF OF UPTO RS 50 LAKHS IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS TH ERE AND THE RELIEF SO GRANTED BY THE COMMISSIONER (APPEALS) CANNOT BE CHALLENGED BEFORE THIS TRIBUNAL, THAT WHEN THIS TRI BUNAL GIVES THE TAXPAYER RELIEF OF UPTO RS 1 CRORE IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELI EF SO GRANTED BY THE TRIBUNAL CANNOT BE CHALLENGED BEFORE THE HONBLE HIGH COURT, AND THAT WHEN HONBLE HIGH COUR T GIVES ITA NOS.53/BANG/2018 AND ORS. PAGE 6 OF 12 RELIEF OF UPTO RS 2 CRORE TO THE TAXPAYER IN AN APP EAL IN AN ASSESSMENT YEAR, THAT RELIEF CANNOT BE CHALLENGED B EFORE HONBLE SUPREME COURT. THESE MONETARY THRESHOLD LIM ITS FOR FILING OF APPEALS BY THE INCOME TAX AUTHORITIES DO NOT TAKE INTO ACCOUNT INTEREST AND OTHER COROLLARIES OF THE TAX D EMANDS BEING CONFIRMED SUCH AS PENALTIES, EXCEPT WHEN A PE NALTY ITSELF IS SUBJECT MATTER OF LITIGATION, AND PROSECU TIONS. THE ENHANCEMENT OF THESE MONETARY LIMITS IS AT AN UNPRE CEDENTED SCALE. THE MONETARY LIMIT FOR APPEALS BEFORE THIS T RIBUNAL, WHICH WAS RS 3,00,000 TILL 10TH JULY 2014, HAS BEEN IN EFFECT ENHANCED TO ALMOST 1,700% IN THE LAST FIVE YEARS. T HIS SUBSTANTIAL RELAXATION IS CERTAINLY A HUGE STEP WHI CH SIGNIFIES TRUST REPOSED BY THE GOVERNMENT OF INDIA IN THE DEC ISIONS OF THE APPELLATE FORUMS, AND SUBSTANTIALLY CUTS DOWN T IME TAKEN IN THE FINALITY OF THE APPELLATE PROCESS. IT IS IND EED HEARTENING TO NOTE THAT IN ONE STROKE, THE GOVERNMENT HAS NOT ONLY PREVENTED, BUT HAS, IN EFFECT, SET THE STAGE FOR WI THDRAWAL OF THOUSANDS OF APPEALS BEFORE THIS TRIBUNAL AND BEFOR E HONBLE COURTS ABOVE. IN AN ENVIRONMENT IN WHICH RETROSPECT IVITY WAS ATTACHED ONLY TO THE TAXATION AND NOT TO TAX RELIEF S OR CONCESSIONS, SUCH AN APPROACH IS A PLEASANT DEPARTU RE FROM LEGACY PRACTICES. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE GENEROUS CONCESSION BY THIS BENEVOLENT CBDT CIRCULA R, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND TH E RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRU CTUOUS. THERE IS, HOWEVER, A SMALL ISSUE THAT WE MUST DEAL WITH. 4. SMT APARNA AGARWAL, LEARNED DEPARTMENTAL REPRESENTATIVE, HOWEVER, HAS A POINT TO MAKE. SHE P OINTS OUT THAT THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT CL EARLY RETROSPECTIVE INASMUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT (T)HE SAID MODIFICATIONS SHALL COME INTO EFFECT FR OM THE DATE OF ISSUE OF THIS CIRCULAR. IT IS THUS POINTED OUT THAT THIS SENTENCE GIVES AN IMPRESSION THAT IS ONLY AFTER THE DATE OF THE SAID CIRCULAR THAT THE DEPARTMENTAL APPEALS WILL NO T BE FILED IN THE CASES WITHIN THE SPECIFIED TAX EFFECT LIMITS. W E ARE URGED TO BEAR IN MIND THE IMPACT OF THIS OBSERVATION WHIL E GIVING EFFECT TO THE CIRCULAR DATED 8TH AUGUST, 2019. SHE, HOWEVER, HASTENS TO ADD THAT SHE IS YET TO HAVE ANY SPECIFIC INSTRUCTIONS ON THE ISSUE AND SHE LEAVES IT FOR THE BENCH TO TAKE THE APPROPRIATE CALL. LEARNED REPRESENTATIVES APPEARING FOR THE TAXPAYERS VEHEMENTLY OPPOSE THE SUGGESTION IMPLICIT ITA NOS.53/BANG/2018 AND ORS. PAGE 7 OF 12 IN HER SUBMISSIONS. ALL OF THEM ARE UNANIMOUS IN TH EIR ARGUMENT THAT THE CIRCULAR MUST BE HELD TO HAVE RET ROSPECTIVE APPLICATION AND MUST EQUALLY APPLY TO THE PENDING A PPEALS AS WELL. SHRI J P SHAH, SENIOR ADVOCATE, POINTS OUT TH AT THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR AND IT IS REQUIRED TO BE READ WITH THE OLD CIRCULAR NO. 3 OF 2018 WHICH IS WHAT IT SEEKS TO MODIFY. THIS CIRCULA R, ACCORDING TO THE LEARNED COUNSEL, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. HE URGES US NO T TO READ THE CIRCULAR IN A MANNER SO AS TO NULLIFY THE UNDER LYING APPROACH AND OBJECT OF REDUCING LITIGATION. SHRI SO PARKAR, LEARNED SENIOR ADVOCATE, SUBMITS THAT ALL THAT THE PRESENT CIRCULAR DOES IS TO MODIFY THE MONETARY LIMITS AND NOTHING MORE, AND, THEREFORE, IT CANNOT BE TREATED TO FOLLO W ANY OTHER APPROACH OTHER THAN THE APPROACH FOLLOWED IN THE OL D CIRCULAR. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR C ONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. SHRI TUSHAR HEMANI, LEARNED S ENIOR ADVOCATE, POINTS OUT THAT THE CIRCULAR DATED 8TH AU GUST 2019 ONLY GIVES FURTHER RELIEF NOT ONLY IN TERMS OF THE MONETARY LIMITS BUT ALSO IN TERMS OF THE MANNER IN WHICH THE APPLICATION OF CIRCULAR TO ORDERS DEALING WITH MORE THAN ONE YEAR IS TO MADE. SHRI S N DIVETIA, LEARNED COUNSEL FOR THE ASSESSEE, SUBMITS THAT UNLIKE IN THE CASES OF EARLI ER CBDT CIRCULARS, WHICH USED TO BE IN SUPERSESSION OF EARL IER CIRCULARS ON THE ISSUES, THE CIRCULAR DATED 8TH AUG UST 2019 ONLY MODIFIES THE EARLIER CIRCULAR WHICH, INTER ALI A, PROVIDED FOR ITS RETROSPECTIVE APPLICATION. OUR ATTENTION IS INVITED TO SOME JUDICIAL PRECEDENTS IN SUPPORT OF THE CONTENTI ON THAT THE BENEVOLENT CIRCULAR, SUCH AS THE ONE IN QUESTION, I S TO BE GIVEN EFFECT IN RESPECT OF THE PENDING APPEALS AS W ELL. MS URVASHI SHODHAN, LEARNED COUNSEL FOR THE ASSESSEE, POINTS OUTS THAT ITS PLAINLY CONTRARY TO THE SCHEME OF THE LITIGATION POLICY OF THE GOVERNMENT OF INDIA TO GIVE THIS CIRC ULAR ONLY PROSPECTIVE EFFECT. SHRI S K SADHWANI, LEARNED COUN SEL FOR THE ASSESSEE, INVITES OUR ATTENTION TO THE LETTER DATED 16TH JULY 2018 ISSUED BY MEMBER CBDT TO THE ALL THE PRINCIPAL CHIEF COMMISSIONERS OF INCOME TAX, IN THE CONTEXT OF CIRC ULAR DATED 11 TH JULY 2018 THAT THE PRESENT CIRCULAR SEEKS TO MODIF Y, SEEKING REPORT ON WITHDRAWAL OF THE APPEALS COVERED BY THE CIRCULAR. HE THEN POINTS OUT THAT IT IS THE OLD CIR CULAR IS STILL ALIVE TODAY AND THE ONLY CHANGE IS WITH RESPECT TO THE MONETARY LIMITS. IN ALL FAIRNESS, THEREFORE, THE SA ME APPROACH ITA NOS.53/BANG/2018 AND ORS. PAGE 8 OF 12 REGARDING WITHDRAWAL OF PENDING APPEALS MUST BE FOL LOWED FOR THIS CIRCULAR AS WELL. ON THE SAME LINES, ARGUMENTS ARE ADVANCED BY THE LEARNED REPRESENTATIVES WHICH, FOR THE SAKE OF BREVITY AND TO AVOID REPETITION, WE ARE NOT REFE RRING TO IN MORE SPECIFIC DETAILS. IN BRIEF REJOINDER, LEARNED DEPARTMENTAL REPRESENTATIVE GRACIOUSLY LEAVES THE MATTER TO US. 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND HAVING PERUSED THE MATERIAL ON RECORD, WE DO NOT HA VE SLIGHTEST OF HESITATION IN HOLDING THAT THE CONCESS ION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEAL S TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABL E TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTIO N WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMEN T THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH N OS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLL OWING EXTRACTS FROM THE CIRCULAR DATED 8TH AUGUST 2019: 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.) 1BEFORE APPELLATE TRIBUNAL50,00,000 2BEFORE HIGH COURT 1,00,00,000 3BEFORE SUPREME COURT2,00,00,000 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: ITA NOS.53/BANG/2018 AND ORS. PAGE 9 OF 12 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 ASS ESSEE, 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/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATELY 4. THE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM THE DATE OF ISSUE OF THIS CIRCULAR. 6. CLEARLY, ALL OTHER PORTIONS OF THE CIRCULAR NO. 3 OF 2018 (SUPRA) HAVE REMAINED INTACT. THE PORTION WHICH HAS REMAINED INTACT INCLUDES PARAGRAPH 13 OF THE AFORES AID CIRCULAR WHICH IS AS FOLLOWS: 13. THIS CIRCULAR WILL APPLY TO SLPS/ APPEALS/ CROSS OBJECTIONS/ REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING ITA NOS.53/BANG/2018 AND ORS. PAGE 10 OF 12 SLPS/ APPEALS/ CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARE 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. 7. IN VIEW OF THE ABOVE DISCUSSIONS, WE HEREBY HOLD T HAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8TH AUGUST 2019 (SUPRA) SH ALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO TH E APPEALS TO BE FILED HENCEFORTH. 8. LEARNED COMMISSIONER (DR) THEN SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHE R VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHIC H IT CAN BE DEMONSTRATED THAT THE APPEALS ARE COVERED BY THE EX CEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUDED IN THIS B UNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CB DT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PR AYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLAN TS SHALL BE AT LIBERTY TO POINT OUT THE CASES WHICH ARE WRON GLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, EIT HER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUC H CASES BEING COVERED BY THE PERMISSIBLE EXCEPTIONS- OR FOR ANY OTHER REASON, AND WE WILL TAKE APPROPRIATE REMEDIAL STEPS IN THIS REGARD. 9. IN THE LIGHT OF THE ABOVE DISCUSSIONS, ALL THE APP EALS STAND DISMISSED AS WITHDRAWN. AS THE APPEALS FILED BY THE REVENUE ARE FOUND TO BE NON-MAINTAINABLE AND AS ALL THE RELATED CROSS-OBJECTIONS OF THE ASSESSEE ARISE ONLY AS A RESULT OF THOSE APPEALS AND MERELY SUPPORT THE ORDER OF TH E CIT(A), THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. ORDERED, ACCORDINGLY. 3. ACCORDINGLY, WE DISMISS ALL THE APPEALS OF THE R EVENUE IN LIMINE AS WITHDRAWN. AS OBSERVED EARLIER, LIBERTY IS GIVEN TO THE REVENUE TO MOVE APPLICATION FOR RECALL OF THE ORDER , IF THE TAX EFFECT IS MORE THAN RS.50.00 LAKHS OR IF THE ISSUES CONTESTED THEREIN FALL IN THE CATEGORY OF EXCEPTIONS PRESCRIBED BY THE CBDT I N THE CIRCULAR OR SUBSEQUENTLY. ITA NOS.53/BANG/2018 AND ORS. PAGE 11 OF 12 4. IN THE RESULT, ALL THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16TH SEPTEMBER, 2019. SD/- SD/- (BEENA PILLAI) (B.R BASKARA N) JUDICIAL MEMBER ACCOUNTANT ME MBER BANGALORE, DATED, THE 16 TH SEPTEMBER, 2019. /VMS/ COPY TO: 1. APPELLANT (S) / CROSS OBJECTOR(S) 2. RESPONDENT(S) 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE. ITA NOS.53/BANG/2018 AND ORS. PAGE 12 OF 12 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SECTION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..