JCIT vs Sanjana Realcon Pvt. Ltd

(A) This Miscellaneous Application ("M.A.", for short) Under Section 254(2) of the Income Tax Act, 1961 ("I.T. Act", for short) read with Rule 24 of Income-Tax (Appellate Tribunal) Rules, 1963 has been filed, requesting for recalling of order dated 28.08.2019 in the main appeal i.e. ITA No. 759/Del/2019 pertaining to Assessment Year 2013-14, which was listed for hearing on 23.08.2019. Vide consolidated order dated 28.08.2019, appeal of Revenue vide ITA No. 759/Del/ 2019 in the case of JCIT vs. Sanjana Realcon Pvt. Ltd. was dismissed on account of low tax effect. In the aforesaid order dated 28.08.2019 Income Tax Appellate Tribunal ("ITAT", for short) took note of CBDT Circular No. 17/2019 dated 08/08/2019 whereby the earlier CBDT Circular No. 3/2018 dated 11.07.2018 was amended, and the minimum monetary limit of tax effect for filing of Departmental Appeals by Revenue before Income Tax Appellate Tribunal was enhanced to Rs. 50 lakhs. Note also taken of clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20th August, 2019 wherein it was directed as under:

"Therefore, it is clear that the revised monetary limits so mentioned in circular 17/2019 is applicable, to all pending SLPs/appeals/cross objections/references. All such pending appeals within the revised limits shall be withdrawn on or before 31.10.2019 and a fortnightly report as to progress on withdrawals should be submitted to Board, by 15th & 31st of every month."

(A.1) Revenue's appeal vide ITA No. 759/Del/2019 was dismissed by aforesaid order dated 28.08.2019 of ITAT on the ground that the tax effect in Revenue's appeal was below Rs. 50 lakhs. It was held in the aforesaid order dated 28.08.2019 that Revenue's appeal was to be treated as withdrawn/ not pressed by Revenue, and also not maintainable, having regard to aforesaid CBDT Circular No. 17/2019 dated 08/08/2019 . However, it was clarified in paragraph (B.3) of the aforesaid order dated 28.08.2019 that Revenue would be at liberty to approach ITAT for recall of the order and for restoration of the appeal, if it was found that Revenue's appeal was not covered by aforesaid CBDT Circular No. - 17/2019 dated 08/08/2019.

(B) Now this present miscellaneous application has been filed by Revenue seeking recall of aforesaid order dated 28.08.2019 of ITAT having regard to Revenue's appeal vide ITA No. 759/Del/2019, on the ground that tax effect in revenue's appeal was Rs. 82,32,918/- which is more than Rs. 50 lakhs prescribed in CBDT Circular No. 17/2019 dated 08/08/2019. The relevant portion of the miscellaneous application of Revenue is reproduced as under:

(C) At the time of hearing before us, the Ld. Senior Departmental Representative ("Ld. Sr. DR", for short) submitted that the tax effect in Revenue's appeal, being Rs. 82,32,918/- was more than Rs. 50 lakhs prescribed in CBDT Circular No. 17/2019 dated 08/08/2019. The Ld. Sr. DR requested for restoration of Revenue's appeal and for decision on merits. The Ld. AR for Assessee agreed with the submission of the Ld. Sr. DR and expressed no objection to restoration of Revenue's appeal.

(C.1) It is not in dispute that the tax effect in Revenue's appeal vide aforesaid ITA No. 759/Del/2019 being Rs.82,32,918/- was more than Rs. 50 lakhs prescribed in CBDT Circular No. 17/2019 dated 08/08/2019. Both sides are in agreement that the aforesaid CBDT circular dated 17/2019 dated 08/08/2019 was not applicable to the Revenue's appeal in ITA No. 759/Del/2019 because the tax effect was more than Rs. 50 lakhs. Both sides are in agreement that the aforesaid order dated 28.08.2019 of ITAT should be recalled in respect of Revenue's appeal in ITA No. 759/Del/2019; and, further that Revenue's appeal should be restored. In view of the foregoing, we recall ITAT's order dated 28.08.2019 in respect of Revenue's appeal in ITA No. 759/Del/2019 and restore Revenue's appeal in the case of JCIT vs. Sanjana Realcon Pvt. Ltd. in ITA No. 759/Del/2019 for Assessment Year 2013-14.

(C.2) Registry is directed to fix hearing of Revenue's appeal vide ITA No. 759/Del/2019 for Denovo hearing before regular Bench of ITAT, Delhi; in normal course.