The Assistant Commr. of Income Tax, Junagadh Circle, JUNAGADH V. Shri Pethaljibhai N. Chavda, JUNAGADH

MA 45/RJT/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4538 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-04-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 25-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, राजकोट 瀈यायपीठ 瀈यायपीठ瀈यायपीठ 瀈यायपीठ, , , , राजकोट IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND T.R. SENTHIL KUMAR, JUDICIAL MEMBER M.A. NO.45/RJT/2019 WITH ITA No.195/RJT/2014 Assessment Year :2002-03 The ACIT, Junagadh Circle, Junagadh. Vs Shri Pethaljibhai N. ChavdaPAN : ABEFC 9564 M Dr.Subhash Palace Khamdhrol Road Junagadh. (Applicant) (Responent) Assessee by : Shri Vimal Desai, AR Revenue by : Shri S.S. Rathi, Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 2 9 / 0 4 / 2 0 2 2 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 2 9 / 0 4 / 2 0 2 2 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: Present Misc. Application is filed at the instance of the Revenue pointing out apparent error qua in the order dated 29.11.2018 passed by the Tribunal in the appeal of the Revenue in ITA No.195/RJT/2016 in terms of CBDT Circular No.3 of 2018 dated 11.7.2018. 2. It is pleaded by the Revenue in the application that in the impugned common order, the appeal of the Revenue was dismissed on the ground that tax effect by virtue of relief given by the ld.CIT(A) MA No.45/RJT/2019 with ITA 2 was less than the monetary limit prescribed by the CBDT Instruction no.03/2018 dated 11.7.2018 i.e. Rs.20 lakhs, hence, the appeal of the Revenue is not maintainable. However, in the present case, the ld.CIT(A)-2, Rajkot vide his composite order for A.Y.2002-03 and 2003-04 allowed the appeal of the assessee. The Tax effect involved both for A.Y.2002-03 and 2003-04 are more than Rs.20 lakhs and ITA No.198/RJT/2016 is pending before the Tribunal, and therefore, appeal of the assessee for the Asst.Year 2002-03 cannot disposed in terms of the above CBDT Circulr. It is further submitted that in view of para-5 of the CBDT Circular No.03/2018, composite order of CIT(A) for A.Y.2002-03 and pending appeal of A.Y.2003-04 ought not to have been dismissed on the ground of being tax effect below the prescribed limit. 3. After going through the pleadings of the Revenue in the MA, we find that the ITAT in special drive to dispose of cases where tax effect in the appeals filed by the Revenue is below Rs.20 lakhs as per CBDT circular no.3 of 2018 dated 11.7.2018, the Tribunal had disposed of the above appeal vide order dated 29.11.2018 impugned by the Revenue. It is the contention of the Revenue that the Revenue is challenging a composite order of the ld.CIT(A) passed for the Asstt.Years A.Y.2002-03 and 2003-04, and the tax effect involved for the Asstt.Year 2002-03 is Rs.23,87,419/- for A.Y.2002- 03 and Rs.38,48,633/- for A.Y.2003-04 therefore, in view of para-5 of CBDT Circular No.03/2018 appeal for the Asstt.Year 2002-03 (under consideration) ought not to have been dismissed on the ground of being tax effect below the prescribe limit. A perusal of para-5 of the above CBDT Circular, we find that this Instruction provides an explanation that in case of a composite order of any High Court or appellate authority, which involves more than one assessment year and common issues in more than one assessment MA No.45/RJT/2019 with ITA 3 year, appeals shall be filed in respect of all such assessment years even if the tax effect is less than the prescribed monetary limits in any of the year(s), if it is decided to file appeal in respect of the year(s) in which tax effect exceeds the monetary limit prescribed. 4. Revenue is correct in observing that as per CBDT Circular No.3 of 2018 in the case of composite order of an appellate authority, in any of the year where the tax effect is less than the prescribed monetary limit, the same cannot be withdrawn as per the above circular. Therefore, disposal of the above appeal by the Tribunal on 29.11.2018 in ITA.No.195/RJT/2016 is an oversight mistake which requires rectification. Therefore, we recall the impugned order dated 29.11.2018 in ITA.No.195/RJT/2016 and proceed to decide the same with the consent of both the parties. ITA.195/RJT/2016 (Asstt.Year 2002-03) 5. At the outset, the ld.counsel for the assessee brought to our notice circular no.17 of 2019 dated 8.8.2019 issued by the CBDT superseding circular No.3 of 2018 dated 11.7.2018 thereby enhancing monetary limit for filing of the appeals by the department before various appellate forums. Para-2 and 3 of the circular reads as under: “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. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. 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. MA No.45/RJT/2019 with ITA 4 6. Following the latest circular no.17 of 2019, which superseded Cir.No.3 of 2018 we hold that present appeal filed by the Revenue is not maintainable, since tax effect in this appeal is below statutory limit prescribed by the CBDT i.e. is below Rs.50 lakhs. Thus, Revenue’s appeal is dismissed as per the new low tax effect circular no.17 of 2019. 7. In the result, Revenue’s Misc. Application is allowed; however, appeal is dismissed due to revised low tax effect. Order pronounced in the Court on 29 th April, 2022 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 29/04/2022