Appeal details
Counselvise Citation
[2019] 115 COUNSELVISE.COM (IT) 4991 (ITAT-JABALPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
5 year(s) 4 month(s) 26 day(s)
Appellant
Respondent
Appeal Type
Income Tax (Search & Seizure) Appeal
Pronouncement Date
23-08-2019
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Assessment Year
2004-2005
Appeal Filed On
28-03-2014
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI. A. D. JAIN, VICE PRESIDENT AND SANJAY ARORA, ACCOUNTANT MEMBER SL . NO. APPEAL NO. A.Y./B.P. APPELLANT RESPONDENT 1 TO 3 IT(SS)A NO.22 TO 24/JAB/14 2004-05 TO 06-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI SMT. SEEMA MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6549F 4 TO 6 CO NO.09 TO 11/JAB/14 [IN IT(SS)A NO.22 TO 24/JAB/14] 2004-05 TO 06-07 SMT. SEEMA MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6549F ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 7 TO 9 IT(SS)A NO.36 TO 38/JAB/14 2004-05 TO 06-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI SMT. KAVITA MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ACIPA3747L 10 TO 12 CO NO.23 TO 25/JAB/14 [IN IT(SS)A NO.36 TO 38/JAB/14] 2004-05 TO 06-07 SMT. KAVITA MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ACIPA3747L ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 13 TO 15 IT(SS)A NO.26 TO 28/JAB/14 2004-05 TO 06-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI SMT. SARLA MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6548E 16 TO 18 CO NO.13 TO 15/JAB/14 [IN IT(SS)A NO.26 TO 28/JAB/14] 2004-05 TO 06-07 SMT. SARLA MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6548E ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 19 TO 22 IT(SS)A NO.87 TO 90/JAB/14 2004-05 TO 07-08 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI LALIT KUMAR MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6537F 23 TO 26 CO NO.75 TO 78/JAB/14 [IN IT(SS)A NO.87 TO 90/JAB/14] 2004-05 TO 07-08 LALIT KUMAR MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6537F ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 27 TO 29 IT(SS)A NO.94 TO 96/JAB/14 2004-05 TO 06-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI LALIT KUMAR MITTAL (HUF), 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAAHL4727R 30 TO 32 CO NO.41 TO 43/JAB/14 [IN IT(SS)A NO.94 TO 96/JAB/14] 2004-05 TO 06-07 LALIT KUMAR MITTAL (HUF), 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAAHL4727R ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 33 TO 35 IT(SS)A NO.40 TO 42/JAB/14 2004-05 TO 06-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI SMT. SATYA DEVI MITTAL, 8- HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6568Q IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 2 OF 10 36 TO 38 CO NO.27 TO 29/JAB/14 [IN IT(SS)A NO.40 TO 42/JAB/14] 2004-05 TO 06-07 SMT. SATYA DEVI MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6568Q ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 39 & 40 IT(SS)A NO.33 & 35/JAB/14 2006-07 & 10-11 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI SMT. SARIKA MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6567B 41 & 42 CO NO.20 & 22/JAB/14 [IN IT(SS)A NO.33 & 35/JAB/14] 2006-07 & 10-11 SMT. SARIKA MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6567B ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 43 TO 48 IT(SS)A NO.66 TO 71/JAB/14 2005-06 TO 10-11 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI PAWAN KUMAR MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6542Q 49 TO 54 CO NO.95 TO 100/JAB/14 [IN IT(SS)A NO.66 TO 71/JAB/14] 2005-06 TO 10-11 PAWAN KUMAR MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6542Q ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 55 IT(SS)A NO.72/JAB/14 2004-05 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI PAWAN KUMAR MITTAL (HUF), 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAAHC9481K 56 CO NO.32/JAB/14 [IN IT(SS)A NO.72/JAB/14] 2004-05 PAWAN KUMAR MITTAL (HUF), 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAAHC9481K ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 57 & 58 IT(SS)A NO.110 &112/JAB/14 2004-05 & 06-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI SURESH KUMAR MITTAL (HUF), 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAEHS7392R 59 & 60 CO NO. 101 &103 /JAB/14 [IN IT(SS)A NO.110 &112/JAB/14] 2004-05 & 06-07 SURESH KUMAR MITTAL (HUF), 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAEHS7392R ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 61 TO 64 IT(SS)A NO.104 TO 107/JAB/14 2004-05, 06- 07 TO 08-09 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI SURESH KUMAR MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6547M 65 TO 68 CO NO.88 TO 91/JAB/14 [IN IT(SS)A NO.104 TO 107/JAB/14] 2004-05, 06- 07 TO 08-09 SURESH KUMAR MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6547M ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 69 TO 72 IT(SS)A NO.99 TO 102/JAB/14 2004-05 TO 06-07 & 09-10 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI C.R MITTAL & SONS (HUF), 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAAHC9481K 73 TO 76 CO NO.46 TO 49/JAB/14 [IN IT(SS)A NO.99 TO 102/JAB/14] 2004-05 TO 06-07 & 09-10 C.R MITTAL & SONS (HUF), 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. AAAHC9481K ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 3 OF 10 77 TO 80 IT(SS)A NO.76 TO 79/JAB/14 2004-05 TO 06-07 & 08-09 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI VIJAY KUMAR MITTAL, 8-HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6555B 81..84 CO NO.82 TO 85/JAB/14 [IN IT(SS)A NO.76 TO 79/JAB/14] 2004-05 TO 06-07 & 08-09 VIJA Y KUMAR MITTAL, 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. ADSPM6555B ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 85 TO 87 IT(SS)A NO.82,84 & 86/JAB/14 2004-05, 06-07 & 10-11 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI VIJAY KUMAR MITTAL (HUF), 8 - HIG, HOUSING BOARD COLONY, KATNI PAN NO. AACHV2243J 88 TO 90 CO NO.36,38 & 40/JAB/14 [IN IT(SS)A NO.82,84 & 86/JAB/14] 2004-05, 06- 07 & 10-11 VIJAY KUMAR MITTAL (HUF), 8-HIG, HOUSING BOARD COLONY,KATNI PAN NO. AACHV2243J ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 91 & 92 IT(SS)A NO.158 &159/JAB/14 2005-06 & 06-07 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI KATNI MINERALS PVT. LTD, 26, COMMERCIAL COMPLEX, HOUSING BOARD COLONY, KATNI PAN NO. AABCK1723A 93 & 94 CO NO.67 & 68/JAB/14 [IN IT(SS)A NO.158 &159/JAB/14] 2005-06 & 06-07 KATNI MINERALS PVT. LTD, 26, COMMERCIAL COMPLEX, HOUSING BOARD COLONY, K ATNI PAN NO. AABCK1723A ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 95 TO 97 IT(SS)A NO.154 TO 156/JAB/14 2008-09 TO 10-11 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI MITTAL TRACTORS PVT. LTD., 26, COMMERCIAL COMPLEX, HOUSING BOARD COLONY, KATNI PAN NO. AADCM8736B 98 TO 100 CO NO.54 TO 56/JAB/14 [IN IT(SS)A NO.154 TO 156/JAB/14] 2008-09 TO 10-11 MITTAL TRACTORS PVT. LTD., 26, COMMERCIAL COMPLEX, HOUSING BOARD COLONY, KATNI PAN NO. AADCM8736B ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI 101 & 102 IT(SS)A NO.142 & 144/JAB/14 2004-05 & 08-09 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI MITTAL ROADWAYS PVT. LTD., 26, COMMERCIAL COMPLEX, HOUSING B OARD COLONY, KATNI PAN NO. AAACM1693A 103 & 104 CO NO.63 & 65/JAB/14 [IN IT(SS)A NO.142 & 144/JAB/14] 2004-05 & 08-09 MITTAL ROADWAYS PVT. LTD., 26, COMMERCIAL COMPLEX, HOUSING BOARD COLONY, KATNI PAN NO. AAACM1693A ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - KATNI DEPARTMENT BY: SHRI P. D. CHOUGLE, D.R. ASSESSEE BY: SHRI DHEERAJ GHAI, C.A. DATE OF HEARING: 23 08 2019 DATE OF PRONOUNCEMENT: 23 08 2019 IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 4 OF 10 O R D E R PER BENCH: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDERS BY THE COMMISSIONER OF INCOME TAX (APPEALS)/S, RELATING TO DIFFERENT ASSESSEES FOR DIFFERENT ASSESSMENT YEARS, AND IN SOME CASES THE ASSESSEES HAVE ALSO FILED CROSS OBJECTIONS (COS). 2. SECTION 268A OF THE ACT PROVIDES THAT AN APPELLATE AUTHORITY, INCLUDING THE APPELLATE TRIBUNAL, SHALL HAVE REGARD TO THE INSTRUCTIONS, DIRECTIONS, ORDERS, ETC. ISSUED BY THE CBDT (BOARD) FROM TIME TO TIME FIXING MONETARY LIMITS FOR THE PURPOSE OF REGULATING THE FILING OF APPEALS BY THE REVENUE BEFORE THE DIFFERENT APPELLATE AUTHORITIES, AND WHICH SHALL, WHILE DECIDING THOSE APPEALS, HAVE REGARD TO THE SAID LIMITS. 3. SINCE THE TAX EFFECT, AS COMPUTED IN TERMS OF CIRCULAR 3 OF 2018, DATED 11/7/2018 ISSUED BY THE BOARD U/S. 119 R/W S. 268A OF THE ACT, INVOLVED IN THESE APPEALS FILED BY THE DEPARTMENT DOES NOT EXCEED RS.50 LAKHS IN EACH OF THESE APPEALS, THEY ARE NOT MAINTAINABLE IN VIEW OF CBDTS CIRCULAR NO.17/2019, DATED 8 TH AUGUST, 2019, AND ARE LIABLE TO BE DISMISSED AS SUCH. SINCE ALL THESE APPEALS ARE TO BE DISPOSED ON THE BASIS OF THE MONETARY LIMIT, AS NOW REVISED, WE HAVE DECIDED TO DISPOSE OF THEM BY PASSING A COMPOSITE ORDER. 4. THE PARTIES WERE HEARD. 5. RECENTLY, THE AHMEDABAD BENCH OF THIS TRIBUNAL HAS PASSED A COMPOSITE ORDER, DISMISSING, SIMILARLY, 628 APPEALS BY THE REVENUE AND RELATED COS BY THE ASSESSEES. THE ORDER IS INSTRUCTIVE, AND IS ACCORDINGLY REPRODUCED AS UNDER: THESE 628 APPEALS AND COS PERTAIN TO THE APPEALS ARE FILED BY VARIOUS ASSESSING OFFICERS, ALL THESE APPEALS CALL INTO QUESTION CORRECTNESS OF THE RELIEF GRANTED TO THE TAXPAYERS BY THE COMMISSIONERS OF INCOME TAX (APPEALS) AND, MOST IMPORTANTLY, THE TAX EFFECT INVOLVED IN ALL THESE APPEALS DOES NOT EXCEED RS.50,00,000 IN EACH OF THESE APPEALS. THE CROSS OBJECTIONS TAKEN IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 5 OF 10 UP FOR HEARING ARE ONLY SUCH CROSS OBJECTIONS AS EMANATE FROM THESE APPEALS AND ARE BROADLY IN SUPPORT OF THE ORDERS PASSED BY THE COMMISSIONER (APPEALS). IN THESE CASES, IN THE LIGHT OF THE DISCUSSIONS WITH THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (GUJARAT) AND REPRESENTATIVES OF THE AHMEDABAD ITAT BAR ASSOCIATION, INDIVIDUAL NOTICES ARE DISPENSED WITH; NOTICES OF HEARING ARE GIVEN ONLY THROUGH THE NOTICE BOARD. 2. IT IS IN THIS BACKDROP THAT WE ARE PLEASED TO TAKE NOTE OF A VERY PRAGMATIC AND TAXPAYER FRIENDLY POLICY DECISION BY THE GOVERNMENT OF INDIA FOR REDUCING THE INCOME TAX LITIGATION. VIDE CBDT CIRCULAR DATED 8TH AUGUST, 2019, THE INCOME TAX DEPARTMENT HAS FURTHER LIBERALIZED ITS POLICY FOR NOT FILING APPEALS AGAINST THE DECISIONS OF THE APPELLATE AUTHORITIES IN FAVOUR OF THE TAXPAYERS, WHEREIN TAX INVOLVED IS BELOW CERTAIN THRESHOLD LIMITS, AND ANNOUNCED ITS POLICY DECISION NOT TO FILE, OR PRESS, THE APPEALS, BEFORE THIS TRIBUNAL, AGAINST 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 LESS. 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 THERE AND THE RELIEF SO GRANTED BY THE COMMISSIONER (APPEALS) CANNOT BE CHALLENGED BEFORE THIS TRIBUNAL, THAT WHEN THIS TRIBUNAL GIVES THE TAXPAYER RELIEF OF UPTO RS 1 CRORE IN AN APPEAL IN AN ASSESSMENT YEAR, THE MATTER ENDS THERE AND THE RELIEF SO GRANTED BY THE TRIBUNAL CANNOT BE CHALLENGED BEFORE THE HONBLE HIGH COURT, AND THAT WHEN HONBLE HIGH COURT GIVES RELIEF OF UPTO RS 2 CRORE TO THE TAXPAYER IN AN APPEAL IN AN ASSESSMENT YEAR, THAT RELIEF CANNOT BE CHALLENGED BEFORE HONBLE SUPREME COURT. THESE MONETARY THRESHOLD LIMITS FOR FILING OF APPEALS BY THE INCOME TAX AUTHORITIES DO NOT TAKE INTO ACCOUNT INTEREST AND OTHER COROLLARIES OF THE TAX DEMANDS BEING CONFIRMED SUCH AS PENALTIES, EXCEPT WHEN A PENALTY ITSELF IS SUBJECT MATTER OF LITIGATION, AND PROSECUTIONS. THE ENHANCEMENT OF THESE MONETARY LIMITS IS AT AN UNPRECEDENTED SCALE. THE MONETARY LIMIT FOR APPEALS BEFORE THIS TRIBUNAL, WHICH WAS RS 3,00,000 TILL 10TH JULY 2014, HAS BEEN IN EFFECT ENHANCED TO ALMOST 1,700% IN THE LAST FIVE YEARS. THIS SUBSTANTIAL RELAXATION IS CERTAINLY A HUGE STEP WHICH SIGNIFIES TRUST REPOSED BY THE GOVERNMENT OF INDIA IN THE DECISIONS OF THE APPELLATE FORUMS, AND SUBSTANTIALLY CUTS DOWN TIME TAKEN IN THE FINALITY OF THE APPELLATE PROCESS. IT IS INDEED HEARTENING TO NOTE THAT IN ONE STROKE, THE GOVERNMENT HAS NOT ONLY PREVENTED, BUT HAS, IN EFFECT, SET THE STAGE FOR WITHDRAWAL OF THOUSANDS OF APPEALS BEFORE THIS TRIBUNAL AND BEFORE HONBLE IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 6 OF 10 COURTS ABOVE. IN AN ENVIRONMENT IN WHICH RETROSPECTIVITY WAS ATTACHED ONLY TO THE TAXATION AND NOT TO TAX RELIEFS OR CONCESSIONS, SUCH AN APPROACH IS A PLEASANT DEPARTURE FROM LEGACY PRACTICES. 3. IN VIEW OF THE ABOVE FACTUAL BACKGROUND AND THE GENEROUS CONCESSION BY THIS BENEVOLENT CBDT CIRCULAR, ALL THESE APPEALS MUST BE DISMISSED AS WITHDRAWN AND THE RELATED CROSS OBJECTIONS MUST BE DISMISSED AS INFRUCTUOUS. 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 POINTS OUT THAT THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT CLEARLY RETROSPECTIVE INASMUCH AS IT SPECIFICALLY STATES IN PARA 4 THAT (T)HE SAID MODIFICATIONS SHALL COME INTO EFFECT FROM 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 NOT BE FILED IN THE CASES WITHIN THE SPECIFIED TAX EFFECT LIMITS. WE ARE URGED TO BEAR IN MIND THE IMPACT OF THIS OBSERVATION WHILE GIVING EFFECT TO THE CIRCULAR DATED 8 TH 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 IN HER SUBMISSIONS. ALL OF THEM ARE UNANIMOUS IN THEIR ARGUMENT THAT THE CIRCULAR MUST BE HELD TO HAVE RETROSPECTIVE APPLICATION AND MUST EQUALLY APPLY TO THE PENDING APPEALS AS WELL. SHRI J P SHAH, SENIOR ADVOCATE, POINTS OUT THAT THE CIRCULAR DATED 8 TH 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 CIRCULAR, ACCORDING TO THE LEARNED COUNSEL, ONLY ENHANCES THE MONETARY LIMITS AND GIVES FURTHER RELAXATION. HE URGES US NOT TO READ THE CIRCULAR IN A MANNER SO AS TO NULLIFY THE UNDERLYING APPROACH AND OBJECT OF REDUCING LITIGATION. SHRI SOPARKAR, 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 FOLLOW ANY OTHER APPROACH OTHER THAN THE APPROACH FOLLOWED IN THE OLD CIRCULAR. THE OLD CIRCULAR, BEYOND ANY DISPUTE OR CONTROVERSY, CATEGORICALLY APPLIED TO THE PENDING APPEALS AS ON THE DATE OF ISSUANCE OF CIRCULAR. SHRI TUSHAR HEMANI, LEARNED SENIOR ADVOCATE, POINTS OUT THAT THE CIRCULAR DATED 8 TH AUGUST 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 IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 7 OF 10 ONE YEAR IS TO MADE. SHRI S N DIVETIA, LEARNED COUNSEL FOR THE ASSESSEE, SUBMITS THAT UNLIKE IN THE CASES OF EARLIER CBDT CIRCULARS, WHICH USED TO BE IN SUPERSESSION OF EARLIER CIRCULARS ON THE ISSUES, THE CIRCULAR DATED 8 TH AUGUST 2019 ONLY MODIFIES THE EARLIER CIRCULAR WHICH, INTER ALIA, PROVIDED FOR ITS RETROSPECTIVE APPLICATION. OUR ATTENTION IS INVITED TO SOME JUDICIAL PRECEDENTS IN SUPPORT OF THE CONTENTION THAT THE BENEVOLENT CIRCULAR, SUCH AS THE ONE IN QUESTION, IS TO BE GIVEN EFFECT IN RESPECT OF THE PENDING APPEALS AS WELL. 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 CIRCULAR ONLY PROSPECTIVE EFFECT. SHRI S K SADHWANI, LEARNED COUNSEL FOR THE ASSESSEE, INVITES OUR ATTENTION TO THE LETTER DATED 16 TH JULY 2018 ISSUED BY MEMBER CBDT TO THE ALL THE PRINCIPAL CHIEF COMMISSIONERS OF INCOME TAX, IN THE CONTEXT OF CIRCULAR DATED 11 TH JULY 2018 THAT THE PRESENT CIRCULAR SEEKS TO MODIFY, SEEKING REPORT ON WITHDRAWAL OF THE APPEALS COVERED BY THE CIRCULAR. HE THEN POINTS OUT THAT IT IS THE OLD CIRCULAR IS STILL ALIVE TODAY AND THE ONLY CHANGE IS WITH RESPECT TO THE MONETARY LIMITS. IN ALL FAIRNESS, THEREFORE, THE SAME APPROACH REGARDING WITHDRAWAL OF PENDING APPEALS MUST BE FOLLOWED 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 REFERRING 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 HAVE SLIGHTEST OF HESITATION IN HOLDING THAT THE CONCESSION EXTENDED BY THE CBDT NOT ONLY APPLIES TO THE APPEALS TO BE FILED IN FUTURE BUT IT IS ALSO EQUALLY APPLICABLE TO THE APPEALS PENDING FOR DISPOSAL AS ON NOW. OUR LINE OF REASONING IS THIS. THE CIRCULAR DATED 8 TH AUGUST 2019 IS NOT A STANDALONE CIRCULAR. IT IS TO BE READ IN CONJUNCTION WITH THE CBDT CIRCULAR NO 3 OF 2018 (AND SUBSEQUENT AMENDMENT THERETO), AND ALL IT DOES IS TO REPLACE PARAGRAPH NOS. 3 AND 5 OF THE SAID CIRCULAR. THIS IS EVIDENT FROM THE FOLLOWING EXTRACTS FROM THE CIRCULAR DATED 8 TH 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: IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 8 OF 10 S.NO. APPEALS/SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 50,00,000 2 BEFORE HIGH COURT 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/ 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 AFORESAID 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 IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 9 OF 10 PENDING 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 THAT THE RELAXATION IN MONETARY LIMITS FOR DEPARTMENTAL APPEALS, VIDE CBDT CIRCULAR DATED 8 TH AUGUST 2019 (SUPRA) SHALL BE APPLICABLE TO THE PENDING APPEALS IN ADDITION TO THE APPEALS TO BE FILED HENCEFORTH. 8. LEARNED COMMISSIONER (DR) THEN SUBMITS LIBERTY MAY KINDLY BE GIVEN TO POINT OUT, UPON NECESSARY FURTHER VERIFICATIONS, AND TO SEEK RECALL THE DISMISSAL OF APPEALS AND RESTORATION OF THE APPEALS IN THE CASES (I) IN WHICH IT CAN BE DEMONSTRATED THAT THE APPEALS ARE COVERED BY THE EXCEPTIONS, AND (II) WHICH ARE INADVERTENTLY INCLUDED IN THIS BUNCH OF APPEALS, WHEREIN THE TAX EFFECT, IN TERMS OF THE CBDT CIRCULAR (SUPRA), EXCEEDS RS 50,00,000. NONE OPPOSES THIS PRAYER; WE ACCEPT THE SAME. WE MAKE IT CLEAR THAT THE APPELLANTS SHALL BE AT LIBERTY TO POINT OUT THE CASES WHICH ARE WRONGLY INCLUDED IN THE APPEALS SO SUMMARILY DISMISSED, EITHER OWING TO WRONG COMPUTATION OF TAX EFFECT OR OWNING TO SUCH 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 APPEALS 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 THE CIT(A), THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DISMISSED AS INFRUCTUOUS. ORDERED, ACCORDINGLY. 8. IN VIEW OF THE FOREGOING, THE REVENUES APPEALS AND THE ASSESSEES COS ARE BEING DISMISSED IN LIMINE AS WITHDRAWN/NOT PRESSED. 9. IT MAY BE CLARIFIED THAT THOUGH EVERY CARE HAS BEEN TAKEN BY THE REGISTRY OF THE TRIBUNAL IN IDENTIFYING THE LISTED APPEALS, IT MAY YET BE THAT SOME ERROR IN WORKING THE TAX EFFECT MAY HAVE OCCURRED. IT MAY ALSO BE THAT AN APPEAL/S IS OTHERWISE SAVED BY THE EXCEPTIONS LISTED AT PARA 10 (SCOPE OF WHICH STANDS WIDENED VIDE AMENDMENT DATED 20/8/2018) OR PARA 11 OF THE CIRCULAR. SIMILARLY, IT MAY BE THAT A CO/S BEARS AN INDEPENDENT GROUND/S, RAISED FOR ADJUDICATION. ACCORDINGLY, LIBERTY IS HEREBY GRANTED TO THE PARTIES TO, IT(SS)A NO.22 TO 24/JAB/14 & 103 OTHER APPEALSE & COS PAGE 10 OF 10 WHERE SO, MOVE THE TRIBUNAL IN THIS REGARD, IN WHICH CASE IT SHALL, WHERE SATISFIED ON MERITS, RECALL AN APPEAL/S OR, AS THE CASE MAY BE, A CO/S, FOR BEING HEARD ON MERITS. FURTHER, THE RECALL OF AN APPEAL WOULD BE ACCOMPANIED BY THE RECALL OF THE ASSESSEES CORRESPONDING CO, IF ANY, DISMISSED ALONG WITH. NEEDLESS TO ADD, THE TRIBUNAL SHALL, WHILE DOING SO, WHICH SHALL BE PER A SPEAKING ORDER, GRANT AN OPPORTUNITY OF HEARING TO THE OTHER SIDE. 10. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AND CROSS OBJECTIONS BY THE ASSESSEES STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23/08/2019. [ SANJAY ARORA ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED:23/08/2019 JJ:2308 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR
