Commissioner Of Income Tax, Ajmer v. Shri Rajendra Kumar Maloo

HIGH COURT OF JUDICATURE FOR RAJASTHAN ATJODHPUR D.B. Income Tax Appeal No. 47 / 2010 Commissioner of Income Tax, Ajmer. ----Appellant Versus Shri Rajendra Kumar Maloo, Proprietor of M/s. Raj Traders & M/sKamal Tea Co., Indra Market, Bhilwara. ----Respondents Connected With D.B. Income Tax Appeal No. 82 / 2009 Commissioner of Income Tax, Ajmer. ----Appellant Versus Shri Rajendra Kumar Maloo, Proprietor of M/s. Raj Traders & M/sKamal Tea Co., Indra Market, Bhilwara. ----Respondents D.B. Income Tax Appeal No. 79 / 2010 Commissioner of Income Tax, Ajmer. ----Appellant Versus Shri Rajendra Kumar Maloo, Proprietor of M/s. Raj Traders & M/sKamal Tea Co., Indra Market, Bhilwara. ----Respondents _____________________________________________________ For Appellant(s) : Mr. K.K. BissaFor Respondent(s) : Mr. Sanjay Nahar _____________________________________________________ HON'BLE MR. JUSTICE K. S. JHAVERI HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATIJudgment 25/01/2018 1.Instant appeals are directed against order of theIncome Tax Appellate Tribunal and indisputably the tax effect asbrought to our notice, is less than Rs.20 lac. 2.A Circular No.21/2015 has been issued by the CentralBoard of Direct Taxes dated 10.12.2015 in exercise of its poweru/sec. 268A (1) of the Income-tax Act 1961 in supersession of the Boards instruction No.5/2014 dt.10.7.2014 regularising themonetary limits for filing the appeal by the Revenue before theTribunal, High Courts and Apex Court with an object for reducinglitigation. Relevant para nos.3, 8, 9 and 10 reads ad infra :- “3.Henceforth, appeals/SLPs shall not be filed in cases wherethe tax effect does not exceed the monetary limits givenhereunder :- S.Appeals in Income-tax mattersMonetary Limit (in Rs.)No.1Before Appellate Tribunal10,00,000/-2Before High Court20,00,000/-3Before Supreme Court25,00,000/- It is clarified that an appeal should not be filed merely becausethe tax effect in a case exceeds the monetary limits prescribedabove. Filing of appeal in such cases is to be decided on merits ofthe case. (a) Where the Constitutional validity of the provisions of an Act orRule are under challenge, or (b)Where Board's order, Notification, Instruction or Circularhas been held to be illegal or ultra vires, or(c)Where Revenue Audit objection in the case has beenaccepted by the Department, or(d)Where the addition relates to undisclosed foreignassets/bank accounts.9.The monetary limits specified in para 3 above shall notapply to writ matters and direct tax matters other than Incometax. Filing of appeals in other Direct tax matters shall continue tobe governed by relevant provisions of statute & rules. Further,filing of appeal in cases of Income Tax, where the tax effect is notquantifiable or not involved, such as the case of registration oftrusts or institutions under section 12 A of the IT Act, 1961, shallnot be governed by the limits specified in para 3 above anddecision to file appeal in such cases may be taken on merits of aparticular case. 10.This instruction will apply retrospectively to pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals. Pending appeals below the specified tax limitsin para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on thissubject, operative at the time when such appeal was filed.” 3.The extract of the paragraphs referred to supra, clearlyindicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time para nos.9and 10 of the Circular if read conjointly, clearly envisages that thepresent instructions will apply retrospectively to all the pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect evenif is less than Rs.20 lac, can be preferred in High Courts. the Supreme Court will be governed by the instructions on thissubject, operative at the time when such appeal was filed.” 3.The extract of the paragraphs referred to supra, clearlyindicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time para nos.9and 10 of the Circular if read conjointly, clearly envisages that thepresent instructions will apply retrospectively to all the pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect evenif is less than Rs.20 lac, can be preferred in High Courts. 4.Taking note of the CBDT Circular dt. 10/12/2015 andthe tax effect which indisputably in the instant case is less thanRs.20 lac, much less than what has been prescribed for filingappeals before the High Courts, deserves to be dismissed as notpressed. However, it is made clear that the substantial questionsof law raised in the instant appeal, if any, are left open to beexamined in an appropriate proceeding, if arises in future. At thesame time we consider it appropriate to observe that if the appealfalls in any of the exceptions as referred to in the Circular dt.10/12/2015, the Revenue will be at liberty to move an applicationfor recalling of the order if so advised. 5.Accordingly, in the light of the CBDT Circular dated10.12.2015 the appeals stand dismissed as not pressed. 6.A copy of this judgment be placed in each file. (DR. PUSHPENDRA SINGH BHATI)J. (K. S. JHAVERI)J.