IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA Nos. 1832 to 1838/Bang/2017 (Assessment Years 2009-10 to 2015-16)

The Assistant Commissioner of Income-tax, Central Circle – 2(4), Bangalore.	Vs.	Shri. E. Ramana Reddy, No.10, Sri Ramanjaneya Nilaya, 32nd Main, 5th Cross, Dollars Colony, BTM 1st Stage, Bangalore – 560 068. PAN : ABOPR 2085 B
APPELLANT		RESPONDENT

Revenue by : Shri. R. N. Siddappaji, Addl. CIT Assessee/C.O. by : Shri. V. Srinivasan, Advocate Date of hearing : 10/01/2019 Date of pronouncement : 11/01/2019

O R D E R

Per Bench These are seven appeals filed by the Revenue against the common order dated

29.06.2017 relating to assessment years 2009-10 to 2015-16. When these appeals were taken up for hearing, it was submitted that the tax effect involved in these seven appeals was less than Rs.20 lakhs and, therefore, these appeals by the Revenue have to be dismissed as not maintainable in view of the CBDT Circular No.3/2018 dated 11.07.2018.

2.1 The ld DR however submitted para 5 of the aforesaid Circular No.3/2018 dated

11.07.2018 which reads as follows:-

"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 assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In other words, henceforth, appeals can be filed only with reference to the tax effect in the relevant assessment year. However, 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 year, appeal shall be filed in respect of all such assessment years even if the "tax effect" is less than the prescribed of the year(s) in which the "tax effect" exceeds the monetary limit prescribed. In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately."

2.2 According to the learned DR, if the order of the CIT(A) is a composite order involving more than one assessment year and common issues in more than one assessment year are involved appeal can be filed in respect of all such assessment years even if the tax effect is less than the prescribed limit for some of the Assessment years comprised in the composite order of the appellate authority. The learned DR pointed out that the CIT(A) in the present case has passed a common order for several AYs and the cumulative tax effect being more than Rs.20 lacs, therefore the appeals for all the AYs 2009-10 to 2015-16 should be held to be falling within the exception contained in paragraph 5 of the circular referred to above.

3. The ld counsel for the assessee, however, pointed out that paragraph 5 of the Circular on which the ld DR paced reliance in support of his contention that the appeals of the Revenue are not hit by the Circular No. 3/2018 which is similar to paragraph 5 issued by the CBDT viz., Circular No.3/2012 which was the Circular issued by the CBDT prescribing monetary limits for filing appeals before Tribunal. This circular was in force prior to the issuance of CBDT Circulars No.21/2015 and Circular No. 3/2018 dated 11.07.2018 which is issued in supersession of CBDT Circular No. 21/2015 dated 10.12.2015 . He brought to our notice that paragraph 5 of CBDT Circular No.3/2012 had come up for consideration before the Hon'ble Karnataka High Court in the case of CIT, Central Circular Vs. PSI Hydraulics (2014) 226 Taxman 34 (Kar). In the aforesaid decision, Hon'be Karnataka High Court held that merely becau

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