Commissioner Of Income-Tax-I, Chennai v. M/S.five Star Business Credits Ltd., Chennai

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 in all appeals/RespondentVs. M/s.Five Star Business Credits Ltd.,Chennai. .. Respondent in all appeals/Appellant T.C.A.No.1361 of 2010 is filed under Section 260-A of theIncome Tax Act against the order dated 23.05.2003 made inI.T.A.No.33/Mds/2003 on the file of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai, against the order of theCommissioner of Income Tax (Appeals) III, Chennai 34, dated01.10.2002 made in Int.TA No.24/2002-03/A111 and against theorder of the Deputy Commissioner of Income Tax, Company CircleII(4), Chennai, made in PAN/GIR Fx1-010 for the Assessment Year2000-2007 dated 18.03.2002. T.C.A.No.1362 of 2010 is filed under Section 260-A of theIncome Tax Act against the order dated 23.05.2003 made inI.T.A.No.82/Mds/1999 on the file of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai and preferred against theorder of the Commissioner of Income tax (Appeals) X, Chennai 34,dated 24.05.2000, made in 17/WT/GT Appeal No.INT.A.298/99-2000and against the order by the Deputy Commissioner of Income Tax,Special Range IV made in PAN/GIR No.47 066 CV 3053 for theAssessment Year 1995-1996, dated 24.03.1998 T.C.A.No.1363 of 2010 is filed under Section 260-A of theIncome Tax Act against the order dated 23.05.2003 made inI.T.A.No.10/Mds/2001 on the file of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai and against the order bythe Commissioner of Income Tax (Appeals), Chennai 34, dated04.10.2000 made in IT/WT/G7/Appeal No.INTA 5/2000-2001 andagainst the order made in PAN/GIR 25FAAACF0419M by the Joint https://hcservices.ecourts.gov.in/hcservices/ Commissioner of Income Tax Special Range IV, Chennai for theAssessment Year 1997-98, dated 24.02.2000. T.C.A.No.1364 of 2010 is filed under Section 260-A of theIncome Tax Act against the order dated 23.05.2003 made inI.T.A.No.36/Mds/2002 on the file of the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai and preferred against theorder by the Commissioner of Income Tax (Appeals) IX, Chennai34, dated 18.03.2002, made in ITA 84/2001-02 and against theorder of the Joint Commissioner of Income Tax, Special Range IV,Chennai 34, made in PAN/GIR No.AAA CF 04194 for the Assessmentyear 1996-97, dated 26.02.1999. These Tax Case Appeals, being old matters, have been takenup for final disposal by us today. These appeals are preferredby the Commissioner of Income Tax-I, Chennai, aggrieved by theorder, dated 23.05.2003, passed by the Income Tax AppellateTribunal, Madras 'B' Bench, Chennai, in I.T.A.No.33/Mds/2003,I.T.A.No.82/Mds/1999, I.T.A.No.10/Mds/2001 and I.T.A.No.36/Mds/2002 respectively. 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: "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." 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.3,33,820/-, 5,37,428/-, 7,46,183/-,99,977/- respectively, and hence, it being less than the limitof tax effect specified in paragraph 3 of the said Circular atRs.20 lakhs, these appeals deserve to be dismissed either aswithdrawn 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 these appeals. 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, https://hcservices.ecourts.gov.in/hcservices/ we treat these appeals as dismissed as withdrawn, in view of theinstructions received by the learned Standing Counsel to thateffect, and dismiss them as such. However, it goes withoutsaying that the questions of law raised in these appeals forconsideration of this Court are kept open to be decided onmerits in an appropriate case. No costs. Sd/-Assistant Registrar(CS-II) //True Copy// Sub Assistant Registrar dixit1. The Income Tax Tribunal,Madras B Bench, Chennai. 2. The Commissioner of Income Tax,(Appeals) III, Chennai 34.3. The Commissioner of Income Tax (Appeals) XChennai 34.4. The Commissioner of Income Tax Appeals,Chennai 34.5.The Commissioner of Income Tax (Appeals) XI,Chennai 34. 6.The Deputy Commissioner of Income Tax,Company Circle II(4), Chennai 34. 7.The Deputy Commissioner of Income Tax,Special Range IV, Madras 34. 8.The Joint Commissioner of Income Tax,Special Range IV, Chennai 34. 1 cc to Mr.V.S.Jayakumar, Advocate, sr.275331 cc to Mr.T.R.Senthilkumar, Advocate, sr.27729 scd cokra 29.06.2016 T.C.A.No.1361 TO 1364 OF 2010 https://hcservices.ecourts.gov.in/hcservices/