Income Tax Appellate Tribunal Kolkata Chemical & Metallurgical Design Co. ... vs Jcit (Osd), Cen. CirXx, Kolkata, ... on 15 May, 2018 IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH : KOLKATA [Before Hon'ble Shri A.T.Varkey, JM & Shri M.Balaganesh, AM ] I.T (SS) A.Nos.94 & 95/Kol/2014 Assessment Years : 200809 & 200910 D.C.I.T., Central CircleXX, . vs. M/s Chemical & Metallurgical Kolkata Design Co. Ltd., Kolkata [PAN : AACCP 4492 L] (Appellant) (Respondent) I.T.A Nos.10901092/Kol/2014 Assessment Years : 200809, 200910 & 201011 M/s. Chemical & Metallurgical vs J.C.I.T. (OSD) Central CircleXX, Design Co. Ltd., Kolkata Kolkata [PAN : AACCP 4492 L] (Appellant) (Respondent) For the Assessee : Shri D.S.Damle, AR For the Department : Shri G.Mallikarjuna, CIT(DR) Date of Hearing : 07.05.2018 Date of Pronouncement : 15 .05.2018 ORDER Per Shri M.Balaganesh, AM 1. These appeals of the revenue and assessee arise out of the orders of the Learned Commissioner of Income Tax (Appeals) CentralIII, Kolkata [ in short the ld CITA] in Appeal Nos. 289291/CCXX/CIT(A)CIII/201112/Kolkata dated 30.12.2011 against the orders passed by the J.C.I.T (OSD),Central CircleXX, Kolkata [ in short the ld AO] under section 143(3)/153A of the Act dated 30.12.2011 for the Asst Years 200809, 200910 and 201011 respectively. Let us take Revenue appeals first 2. Recently the CBDT has issued Circular No. 21/2015, dated 10th December, 2015, whereby the monetary limits for filing of appeals by the Department before Income Tax 2 IT(SS)94&95/Kol/2014 & ITA Nos.10901092/Kol/2014 Chemical & Metllurgical Design Co.Ltd. A.Yr.200809 to 201011 Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as measure for reducing Litigation. The revised monetary limits laid down in para3 of this Circular and the manner of computing tax effect as laid down in para4 of this Circular are as follows: "3. Henceforth, Appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Sl. No. Appeals in Incometax matters Monetary Limit (in Rs) 1. Before Appellate Tribunal 10,00,000/ 2. Before High Court 20,00,000/ 3. Before Supreme Court 25,00,000/ It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. 4. For this purpose, "tax effect" means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (hereinafter referred to as "disputed issues"). However the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against." 3. In para10 of the said circular it has further been clarified that the revised monetary limits will apply retrospectively. The relevant para10 of the Circular reads thus: "10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed." 4. In the present case, the tax effect in these appeals by the revenue is less than Rs.10,00,000/. Though this appeal had been filed by the revenue on 30.05.2014 a