Commissioner Of Income Tax, Chennai v. M/S.jaihind Spinning Mills Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 29.04.2016 CORAM: THE HONOURABLE MR.JUSTICE NOOTY.RAMAMOHANA RAOANDTHE HONOURABLE MR.JUSTICE M.V.MURALIDARANTax Case (Appeal) No.300 of 2010 Commissioner of Income Tax, Chennai. ..Appellant/Respondent Vs. M/s.Jaihind Spinning Mills Ltd.,235, Mint Street, Park Town,Chennai-600 003. ..Respondent/AppellantTax Case (Appeal) filed under Section 260-A of the IncomeTax Act against the order dated 07.08.2009 made inI.T.A.No.1009/Mds/2008 on the file of the Income Tax AppellateTribunal, Madras 'B' Bench. against the Order of the Commissioner of Income-Tax(Appeals)-VIII, Chennai, made in ITA.NO.212/2007-2008 Dated21/02/2008 against the Order of the Asst. Commissioner ofIncome-Tax Company Circle II (3), Chennai-34. made in PAN. Dated 20/07/2006. For Appellant : Mr.T.R.Senthilkumar, Standing Counsel for Income Tax For Respondent : Mr.S.Sridhar This Tax Case Appeal being an 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 07.08.2009, passed by the Income Tax Appellate Tribunal,'B' Bench, Madras, in I.T.A.No.1009/Mds/2008. https://hcservices.ecourts.gov.in/hcservices/ 2. Learned counsel for the respondent-assessee, in the formof a memorandum, has raised a preliminary objection with regardto 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: 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 instant case is to the value of Rs.8,33,306/- and hence, it being lessthan the limit of tax effect specified in paragraph 3 of thesaid Circular at Rs.20 lakhs, this appeal deserves to bedismissed 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, he has alreadytaken up the matter with the Department, but however, he has notreceived any instructions in writing from the Department andhence, he cannot withdraw this appeal. case is to the value of Rs.8,33,306/- and hence, it being lessthan the limit of tax effect specified in paragraph 3 of thesaid Circular at Rs.20 lakhs, this appeal deserves to bedismissed 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, he has alreadytaken up the matter with the Department, but however, he has notreceived any instructions in writing from the Department andhence, he 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 dismissed as withdrawn, in view of theinstructions received by the learned Standing Counsel to thateffect, and dismiss it as such. However, it goes without sayingthat the questions of law raised in this appeal forconsideration of this Court are kept open to be decided onmerits in an appropriate case. No costs. dixit Sd/- Asst.Registrar /true copy/ Sub Asst. Registrar TO 1. THE COMMISSIONER OF INCOME TAX,CHENNAI. 2. THE COMMISSIONER OF INCOME TAX, (APPEALS)-VIII, CHENNAI. 3. THE ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE (3)Vth FLOOR, NEW BLOCK, 121, M.G. ROAD, CHENNAI-34.+ 1 CC TO MR.S.SRIDHAR, ADVOCATE SR 27568 + 1 CC TO MR.T.R.SENTHIL KUMAR, ADVOCATE SR 27735 KR/7/6/16