Commissioner Of Income Tax -I, Chennai v. M/S.effa Healthy Life Pvt.ltd., No.q

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE NOOTY.RAMAMOHANA RAOANDTHE HONOURABLE MR.JUSTICE M.V.MURALIDARAN Commissioner of Income Tax -I, Chennai. .. Appellant/AppellantVs. M/s.Effa Healthy Life Pvt.Ltd.,No.Q-67, 16[th] Street, Anna Nagar,Chennai-600 040. .. Respondent/Respondent Tax Case (Appeal) filed under Section 260-A of the IncomeTax Act against the order dated 07.05.2010 made inI.T.A.No.1004/Mds/2009 Assessment year 2005-2006 on the file ofthe Income Tax Appellate Tribunal, Chennai 'B' Bench againstthe order of the Commissioner of Income tax (Appeals) III,Chennai - 600 034, dated 31.03.2009, made in ITA No. 406/07-08/A.VII against the order of The Income Tax Officer, CompanyWard III (1), Chennai 34, dated 24.12.2007 made in GIR No./PANAAACE7900Q for the Assessment year 2005-06. For appellant : Mr.T.R.Senthilkumar, Standing Counsel for Income Tax Department. For respondent : Mr.S.Sridhar JUDGMENT (Judgment of the Court was delivered by Nooty.Ramamohana Rao,J) 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 07.05.2010, passed by the Income Tax Appellate Tribunal,Chennai 'B' Bench, in I.T.A.No.1004/Mds/2009. 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, based https://hcservices.ecourts.gov.in/hcservices/ upon 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:- Sl.Appeals in Income-taxMonetary Limit (inNo.mattersRs.)1BeforeAppellate10,00,000/-Tribunal2Before High Court20,00,000/-3Before Supreme Court25,00,000/- 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.18,76,810/- and hence, it being lessthan the limit of tax effect specified in paragraph 3 of the said Circular at Rs.20 lakhs, this appeal deserves to bedismissed either as withdrawn or not pressed. 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.18,76,810/- and hence, it being lessthan the limit of tax effect specified in paragraph 3 of the said 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. Sd/-Assistant Registrar(CS-VI) //True Copy// Sub Assistant RegistrardixitTo1. The Commissioner of Income Tax I,Appellate Tribunal, B Bench,Chennai. 2. The Commisioner of Income Tax,(Appellate III), 121, Mahatma Gandhi Road,Chennai 34. 3. The Income Tax OfficerCompany Ward III(1)Room No.415, New Block 121,MG Road, Chennai 34. 1 cc to Mr.T.R.Senthilkumar, Advocate, sr.277361 cc to Mr.S.Sridhar, Advocate, sr.27571 nm cokra 06.06.2016 T.C.A.No.1036 OF 2010