Commissioner Of Income Tax, Chenai v. Tube Investments Of India Ltd.,'Tiam House', 28, Rajaji Salai,Chennai-600 001

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 27.04.2016 THE HONOURABLE MR.JUSTICE NOOTY.RAMAMOHANA RAOANDTHE HONOURABLE MR.JUSTICE M.V.MURALIDARAN Tax Case (Appeal) No.1122 of 2007 Commissioner of Income Tax, Chenai. .. Appellant/Appellant Vs. Tube Investments of India Ltd.,'Tiam House', 28, Rajaji Salai,Chennai-600 001. .. Respondent/Respondent Tax Case (Appeal) filed under Section 260-A of the IncomeTax Act against the order dated 21.07.2006 made inI.T.A.No.1159/Mds/99 on the file of the Income Tax AppellateTribunal, 'B' Bench, Chennai`against the Order passed by theCommissioner of Income Tax (Appeals-V) Chennai-34 dated20.5.1999 made in ITA No.33/98-99 which was preferred againstthe order passed by the Deputy Commissioner of Income TaxSpecial Range I, Chennai dated 9.3.98 and made in GIR No.47-066.CY-3348. For appellant : Mrs.Hema Muralikrishnan, Standing Counsel for Income Tax For respondent : Mr.M.P.Senthilkumar (The Judgment of the Court was delivered by Nooty.RamamohanaRao,J) This Tax Case Appeal being the old matter, has been taken upfor final disposal by us today. This appeal is preferred by theCommissioner of Income Tax, Chennai, aggrieved by the order,dated 21.07.2006 passed by the Income Tax Appellate Tribunal,'B' Bench, Chenai in I.T.A.No.1159/Mds/1999. 2. Learned counsel for the respondent-assessee, in the formof a memorandum, has raised a preliminary objection with regard https://hcservices.ecourts.gov.in/hcservices/ to the sustainability of the Department's Tax Case Appeal, basedupon the instructions contained in Circular No.21 of 2015, dated10.12.2015 issued by the Central Board of Direct Taxes, NewDelhi. 3. The said Circular No.21 of 2015 deals with the subjectmatter of revision of mandatory limits for filing of the appealsby the Department before the Income Tax Appellate Tribunal, HighCourts and Special Leave Petitions before the Supreme Court.Various measures are devised from time to time for reducing theunproductive litigations. In paragraphs 3 and 10 of the saidCircular, the following instructions have been issued: "3. Henceforth, appeals/SLPs shall not be filedin cases where the tax effect does not exceed themonetary limits given hereunder:- It is clarified that an appeal should not be filedmerely because the tax effect in a case exceeds themonetary limits prescribed above. Filing of appeal insuch cases is to be decided on merits of the case." "10. The instruction will apply retrospectivelyto pending appeals and appeals to be filed henceforthin High Courts/Tribunals. Pending appeals below thespecified tax limits in para 3 above may bewithdrawn/not pressed. Appeals before the SupremeCourt will be governed by the instructions on thissubject, operative at the time when such appeal wasfiled." 4. From the above instructions contained in the Circular,learned counsel for the respondent/assessee submitted thatpending appeals before the High Court, below the specified taxlimits as stated in paragraph 3 of the Circular, are liable tobe withdrawn/not pressed. The limits prescribed in paragraph 3insofar as the appeals before the High Court are concerned, theyare set out for Rs.20 lakhs. According to the learned counselfor the respondent/assessee, the total tax effect in the instantcase is to the value of Rs.16.40 lakhs (approximately) andhence, it being less than the limit of tax effect specified in paragraph 3 of the said Circular at Rs.20 lakhs, this appealdeserves to be dismissed either as withdrawn or not pressed. 5. At this stage, learned Standing Counsel appearing for theappellant/Revenue (Department) urged that having noticed theinstructions contained in the said Circular, she has alreadytaken up the matter with the Department, but however, she hasnot received any instructions in writing from the Department andhence, she cannot withdraw this appeal. paragraph 3 of the said Circular at Rs.20 lakhs, this appealdeserves to be dismissed either as withdrawn or not pressed. 5. At this stage, learned Standing Counsel appearing for theappellant/Revenue (Department) urged that having noticed theinstructions contained in the said Circular, she has alreadytaken up the matter with the Department, but however, she hasnot received any instructions in writing from the Department andhence, she cannot withdraw this appeal. 6. It is appropriate to notice that the Central Board ofDirect Taxes has issued the instructions contained in the saidCircular in exercise of its power available to it under Section268-A(i) of the Income Tax Act,1961 and hence, the Circular hasstatutorily enforceable character. In that view of the matter,we treat this appeal as not pressed and dismiss it as such.However, it goes without saying that the questions of law raisedin this appeal for consideration of this Court in this appeal,are kept open to be decided on merits in an appropriate case. Nocosts. Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar Copy toTo 1. The Assistant Registrar, Income Tax Appellate Tribunal, Rajaji Bhavan, Rajaji Bhavan, III Floor, Besant Nagar, Chennai-600 090. (with records) (5 copies) Chennai-600 090. (with records) (5 copies) 2. The Secretary, Central Board of Revenue, New Delhi. (3 copies) Central Board of Revenue, New Delhi. (3 copies) 3. The Secretary, Central Board of Direct Taxes, New Delhi. (3 copies) 4. The Commissioner of Income Tax, Tamil Nadu Circle, Chennai-600 034. Tamil Nadu Circle, Chennai-600 034. 5. The Commissioner of Income Tax (Appeals)-V, Tamil Nadu Circle, Chennai-600 034. Tamil Nadu Circle, Chennai-600 034. 6. The Deputy Commissioner of Income Tax (Spl- Raange-I), Chennai. Chennai. +1cc to Mr.T.Ravikumar, Advocate sr.26229 +1cc to Mr.Philip George, Advocate sR.26926 T.C.(A).No.1122 of 2007 ctk(CO)srg(12/05/2016)