Commissioner Of Income-Tax Iii, Chennai v. M/S.matrix Intel Private Ltd.,Flat

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) Nos.766 TO 769 of 2010 Commissioner of Income-Tax III, Chennai...Appellant in All Appeals Vs. M/s.Matrix Intel Private Ltd.,Flat No.1, F-105, Anna Nagar,Chennai-600 102...Respondent in All AppealsT.C.A.No.766 of 2010 filed under Section 260-A of the IncomeTax Act against the order dated 04.09.2009 made inI.T.A.No.1068/Mds/2006, on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench, Chennai. 1.against the Order of the Commissioner of Income Tax AppealinITA.NO.63/2005-2006Dated27.01.2006inPAN/G.I.NO.AACCM6572G/MA-248 for the Assessment Year 2000-2001against the Order of the Deputy Commissioner of Income-TaxCompany Circle IV (1) Chennai-34, Dated 21.03.2005. T.C.A.No.767 of 2010 filed under Section 260-A of the IncomeTax Act against the order dated 04.09.2009 made inI.T.A.No.1069/Mds/2006, on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench, Chennai. 2.against the Order of the Commissioner of Income Tax AppealinITA.NO.64/2005-2006Dated27.01.2006inPAN/G.I.NO.AACCM6572G/MA-248 for the Assessment Year 2001-2002against the Order of the Deputy Commissioner of Income-TaxCompany Circle IV (1) Chennai-34, Dated 21.03.2005. T.C.A.No.768 of 2010 filed under Section 260-A of the IncomeTax Act against the order dated 04.09.2009 made inI.T.A.No.1070/Mds/2006, on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench, Chennai. https://hcservices.ecourts.gov.in/hcservices/ 3.against the Order of the Commissioner of Income Tax AppealinITA.NO.65/2005-2006Dated27.01.2006inPAN/G.I.NO.AACCM6572G/MA-248 for the Assessment Year 2002-2003against the Order of the Deputy Commissioner of Income-TaxCompany Circle IV (1) Chennai-34, Dated 21.03.2005. T.C.A.No.769 of 2010 filed under Section 260-A of the IncomeTax Act against the order dated 04.09.2009 made inI.T.A.No.1451/Mds/2006, on the file of the Income Tax AppellateTribunal, Chennai 'B' Bench, Chennai. 4.against the Order of the Commissioner of Income Tax Appealin ITA.NO.466/2005-2006 Dated 30.03.2006 in PAN.NO. ,for the Assessment Year 1999-2000 against the Order of the Asst.Commissioner of Income-Tax, Company Circle IV (1) Chennai-34,Dated 23.03.2004. These Tax Case Appeals being old matters have been taken upfor final disposal by us today. These appeals are preferred bythe Commissioner of Income Tax-III, Chennai, aggrieved by theorder, dated 04.09.2009, passed by the Income Tax AppellateTribunal, Chennai 'B' Bench, Chennai, in I.T.A.No.1068/Mds/2006,I.T.A.No.1069/Mds/2006,I.T.A.No.1070/Mds/2006andI.T.A.No.1451/Mds/2006, 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: https://hcservices.ecourts.gov.in/hcservices/ "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." https://hcservices.ecourts.gov.in/hcservices/ "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.11,40,993/- and hence, it being lessthan the limit of tax effect specified in paragraph 3 of thesaid Circular at Rs.20 lakhs, these appeals deserve 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 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 Section https://hcservices.ecourts.gov.in/hcservices/ 268-A(i) of the Income Tax Act,1961 and hence, the Circular hasstatutorily enforceable character. In that view of the matter,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. dixit Sd/- Asst.Registrar /true copy/Sub Asst. RegistrarTO1. THE COMMISSIONER OF INCOME-TAX III, CHENNAI. 2. THE COMMISSIONER OF INCOME-TAX(APPEALS)-V, 121, MAHATMAGANDHI ROAD, CHENNAI-34.3. THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE (IV)(1), CHENNAI-34.4. THE ASST. COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE (IV)(1), CHENNAI-34.+ 1 CC TO T.R.SENTHIL KUMAR, ADVOCATE SR 27737+ 1 CC TO V.S.JAYAKUMAR, ADVOCATE SR 27534KR/6/6/16 T.C.A.Nos.766 to 769 OF 2010