Ajay Rastogi),J v. Shekhawat Sr.p.a

(1) In The High Court of Judicature for RajasthanJaipur Bench, Jaipur 1. D.B.Income Tax Appeal No.328/2008. 2. D.B.Income Tax Appeal No.196/2008. 08.07.2016. HON'BLE MR.JUSTICE AJAY RASTOGIHON'BLE MR.JUSTICE J.K. RANKA Mr. Tej Prakash Sharma Adv., for appellant-revenue.Mr. P.K. Kasliwal Adv., for respondent-assessee. ***** Instant appeals are directed against order of the Income TaxAppellate Tribunal and indisputably the tax effect as brought to ournotice, is less than Rs.20 lac. A Circular No.21/2015 has been issued by the Central Board ofDirect Taxes dated 10.12.2015 in exercise of its power u/sec. 268A (1)of the Income-tax Act 1961 in supersession of the Boards instructionNo.5/2014 dt.10.7.2014 regularising the monetary limits for filing theappeals by the Revenue before the Tribunal, High Courts and ApexCourt with an object for reducing litigation. Relevant para nos.3, 8, 9and 10 reads ad infra :- “3.Henceforth, appeals/SLPs shall not be filed in caseswhere the tax effect does not exceed the monetary limitsgiven hereunder :- (2) It is clarified that an appeal should not be filed merelybecause the tax effect in a case exceeds the monetarylimits prescribed above. Filing of appeal in such cases is tobe decided on merits of the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to the following issuesshould be contested on merits notwithstanding that the taxeffect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisionsof an Act or Rule are under challenge, or (b)Where Board's order, Notification, Instruction orCircular has been held to be illegal or ultra vires, or (c)Where Revenue Audit objection in the case hasbeen accepted by the Department, or (d)Where the addition relates to undisclosedforeign assets/bank accounts. 9.The monetary limits specified in para 3 above shallnot apply to writ matters and direct tax matters other thanIncome tax. Filing of appeals in other Direct tax mattersshall continue to be governed by relevant provisions ofstatute & rules. Further, filing of appeal in cases of IncomeTax, where the tax effect is not quantifiable or notinvolved, such as the case of registration of trusts orinstitutions under section 12 A of the IT Act, 1961, shall notbe governed by the limits specified in para 3 above anddecision to file appeal in such cases may be taken on meritsof a particular case. 10.This instruction will apply retrospectively to pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals. Pending appeals below the specified taxlimits in para 3 above may be withdrawn/not pressed.Appeals before the Supreme Court will be governed by theinstructions on this subject, operative at the time whensuch appeal was filed.” The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply to certain exceptions (3) specified in para 8, at the same time para nos.9 and 10 of the Circularif read conjointly, clearly envisages that the present instructions willapply retrospectively to all the pending appeals and appeals to befiled henceforth in High Courts/Tribunals, subject to exceptionswhere the tax effect even if is less than Rs.20 lac, can be preferred inHigh Courts. The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply to certain exceptions (3) specified in para 8, at the same time para nos.9 and 10 of the Circularif read conjointly, clearly envisages that the present instructions willapply retrospectively to all the pending appeals and appeals to befiled henceforth in High Courts/Tribunals, subject to exceptionswhere the tax effect even if is less than Rs.20 lac, can be preferred inHigh Courts. Taking note of the CBDT Circular dt. 10/12/2015 and the taxeffect which indisputably in the instant case is less than Rs.20 lac,much less than what has been prescribed for filing appeal before theHigh Courts, deserves to be dismissed as not pressed. However, it ismade clear that the substantial questions of law raised in the instantappeals, if any, are left open to be examined in an appropriateproceeding, if arises in future. At the same time we consider itappropriate to observe that if the appeal falls in any of the exceptionsas referred to in the Circular dt. 10/12/2015, the Revenue will be atliberty to move an application for recalling of the order if so advised. Accordingly, in the light of the CBDT Circular dated 10.12.2015the appeals stand dismissed as not pressed. Let a copy of this order be placed in each file separately. (J.K. RANKA),J. (AJAY RASTOGI),J. VS Shekhawat Sr.P.A.