Income Tax Appellate Tribunal - DelhiIto Ward - 13(4), New Delhi vs Jwala Associates (P) Ltd, New Delhi on 17 July, 2020IN THE INCOME TAX APPELLATE TRIBUNAL\n                   DELHI BENCH FRIDAY NEW DELHI\n\n           BEFORE SHRI G.S. PANNU, VICE PRESIDENT\n                           AND\n           SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER\n\n                         ITA No. 182/Del/2020\n                       Assessment Year : 2011-12\n\n ITO,                                Jwala Associates (P) Ltd.,\n Ward 13(4),                         C/o Sandeep Sapra,\n New Delhi.                          C-763, New Friends Colony,\n                                     New Delhi-110025\n                                     (PAN: AABCJ8284F)\n     (Appellant)                       (Respondent)\n\n\n                            Appellant by: Shri Saras Kumar, Sr. DR\n                          Respondent by: Shri Sandeep Sapra, Adv.\n\n                                    ORDERPER G.S. PANNU, VICE PRESIDENT\n\n     The appeal filed by the Revenue is directed against the order of\nLd. Commissioner of Income Tax (Appeals)-5, New Delhi dated\n21.10.2019 pertaining to the assessment year 2011-12.2.   At the outset, the ld. AR brought to our attention that CBDT vide\nCircular No. 17/2019 dated 08th August 2019 has decided that the\nrevenue would not prefer any appeal before the Tribunal if the tax\neffect is less than Rs. 50 lakhs. Therefore, he pleaded that the appeal\nof the revenue be decided as per the Instruction of the CBDT. The ld.\nAR submitted that the tax effect is only Rs. 6,31,596/- which is below\nthe revised limit of Rs. 50 lakh.ITA No. 182/D/2020ASSESSMENT YEAR 2011-123.     Now there is a latest CBDT Circular No. 17/2019 dated\n08.08.2019, wherein the CBDT has further enhanced the monetary\nlimit for filing of appeal by the Department before the Income Tax\nAppellate Tribunal from Rs. 20 lacs to Rs. 50 lacs. The said circular\nalso make reference to the earlier Circular No. 3/2018                    dated\n11.7.2018 and specially states that as a step towards further\nmanagement of litigation, the Board has decided to enhance                   the\nmonetary limit for filing of the appeals. This circular is not in\nsupersession of the earlier circular but only amends the monetary\nlimits as well as gives clarification with regard to paragraph 5 of the\nearlier circular. This inter alia means that all the other conditions\nmentioned in the earlier Circular No. 3 of 2018 dated 11.7.2018 will\napply mutatis mutandis including that is, it will apply to all the\npending appeals. For the sake of ready reference, the latest circular is\nreproduced hereunder :"F. No.279/Misc. 142/2007-ITJ(Pt.)\n                           Government of India\n                            Ministry of Finance\n                           Department of Revenue\n                           Central Board Direct Taxes\n                                 Judicial Section\n                                        New Delhi. 8th August 2019\n\n                     Subject: - Further Enhancement of Monetary limits for filing\n                     of appeals by the Department before Income Tax Appellate\n                     Tribunal, High Courts and SLPs/appeals before Supreme\n                     Court - Amendment to Circular 3 of 2018 - Measures for\n                     reducing litigation.-Reference is invited to the Circular No.3 of2018\n                     dated 11.07.2018 (the Circular) of Central Board of Direct\n                     Taxes (the Board) and its amendment dated 20th August.\n                     2018 vide which monetary limits for filing of income tax\n                     appeals by the Department before Income Tax Appellate\n                     Tribunal. High Courts and SLPs/appeals before Supreme\n                     Court have been specified. Representation has also been2ITA No. 182/D/2020ASSESSMENT YEAR 2011-12\n\n\n                     received that an anomaly in the said circular at para 5 may\n                     be removed."2. As a step towards further management of litigation. it\n                     has been decided by the Board that monetary limits for\n                     filing of appeals in income-tax cases be enhanced further\n                     through amendment in Para 3 of the Circular mentioned\n                     above and accordingly, the table for monetary limits\n                     specified in Para 3 of the Circular shall read as follows:S.No   Appeals/SLPs in income    Monetary Limit (Rs.)\n                            tax matters1.     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\n              scenarios where separate order is passed by higher appellate\n              authorities for each assessment year vis-a-vis where composite\n              order for more than one assessment years is passed. para 5 of\n              the circular is substituted by the following para:"5. The Assessing Officer shall calculate the tax effect\n                     separately for every assessment year in respect of the\n                     disputed issues in the case of every assessee. If, in the\n                     case of an assessee, the disputed issues arise in more than\n                     one assessment year, appeal can be filed in respect of such\n                     assessment year or years in which the tax effect in respect\n                     of the disputed issues exceeds the monetary limit specified\n                     in para 3. No appeal shall be filed in respect of an\n                     assessment year or years in which the tax effect is less\n                     than the monetary limit specified in para 3. Further, even in\n                     the case of composite order of any High Court or appellate\n                     authority which involves more than one assessment year\n                     and common issues in more than one assessment year, no\n                     appeal shall be filed in respect of an assessment year or\n                     years in which the tax effect is less than the monetary limit\n                     specified in para 3. In case where a composite order/\n                     judgement involves more than one assessee. each\n                     assessee shall be dealt with separately.4. The said modifications shall come into effect from the\n                     date of issue of this Circular.5. The same may be brought to the notice of all concerned.3ITA No. 182/D/2020ASSESSMENT YEAR 2011-126. This issues undersection 268Aof the Income-tax Act,\n                     1961."4.     Further, CBDT vide circular dated 20th August, 2019 F.No.279/19-\n93/2018-ITJ has clarified that it will apply to all pending appeals.\nThus, in view of the aforesaid circular, the appeal of the Revenue is\ndismissed as non-maintainable because tax effect is below Rs. 50\nlakhs.5.     In the result, appeal filed by the Revenue is dismissed.Order pronounced in the Open Court in the presence of the parties\n\nthrough video conferencing.Sd/-                                                   Sd/-\n\n\n(Sudhanshu Srivastava)                                      ( G.S. Pannu)\n Judicial Member                                             Vice President\n\n Dated: 17th July, 2020\n'GS'\n\nCopy forwarded to: -\n\n1.     Appellant\n2.     Respondent\n3.     CIT\n4.     CIT(A)\n5.     DR, ITAT\n\n\n                                                           By Order\n\n\n\n                                                        Assistant Registrar4