Commissioner Of Income Tax Jai v. M/S Prem Kabra Associates

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 135 / 2006 Commissioner Of Income Tax Jai ----Appellant Versus M/S Prem Kabra Associates ----Respondent _____________________________________________________ Counsel For Appellant(s) : Mr. Anuroop SinghiCounsel For Respondent(s): Mr. Atul Saxena _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE VINIT KUMAR MATHURJudgment 03/01/2017 Application (26663/2016) for early listing of the appeal isallowed. Instant appeal is directed against order of the Income TaxAppellate Tribunal and indisputably the tax effect as brought toour notice, is less than Rs.20 lac. A Circular No.21/2015 has been issued by the Central Boardof Direct Taxes dated 10.12.2015 in exercise of its power u/sec.268A (1) of the Income-tax Act 1961 in supersession of theBoards instruction No.5/2014 dt.10.7.2014 regularising themonetary limits for filing the appeals by the Revenue before theTribunal, High Courts and Apex Court with an object for reducinglitigation. Relevant para nos.3, 8, 9 and 10 reads ad infra :- “3.Henceforth, appeals/SLPs shall not be filed in caseswhere the tax effect does not exceed the monetary limitsgiven hereunder :- S.Appeals in Income-tax mattersMonetary Limit (in Rs.)No.1Before Appellate Tribunal10,00,000/-2Before High Court20,00,000/-3Before Supreme Court25,00,000/- It is clarified that an appeal should not be filed merely becausethe tax effect in a case exceeds the monetary limits prescribedabove. Filing of appeal in such cases is to be decided onmerits of the case. (a) Where the Constitutional validity of the provisions of anAct or Rule are under challenge, or (b)Where Board's order, Notification, Instruction or Circularhas been held to be illegal or ultra vires, or (c)Where Revenue Audit objection in the case has beenaccepted by the Department, or (d)Where the addition relates to undisclosed foreignassets/bank accounts. 9.The monetary limits specified in para 3 above shall notapply to writ matters and direct tax matters other thanIncome tax. Filing of appeals in other Direct tax matters shallcontinue to be governed by relevant provisions of statute &rules. Further, filing of appeal in cases of Income Tax, wherethe tax effect is not quantifiable or not involved, such as thecase of registration of trusts or institutions under section 12 Aof the IT Act, 1961, shall not be governed by the limitsspecified in para 3 above and decision to file appeal in suchcases may be taken on merits of a particular case. 10.This instruction will apply retrospectively to pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals. Pending appeals below the specified taxlimits in para 3 above may be withdrawn/not pressed.Appeals before the Supreme Court will be governed by theinstructions on this subject, operative at the time when suchappeal was filed.” The extract of the paragraphs referred to supra, clearlyindicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time paranos.9 and 10 of the Circular if read conjointly, clearly envisagesthat the present instructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effecteven if is less than Rs.20 lac, can be preferred in High Courts. The extract of the paragraphs referred to supra, clearlyindicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time paranos.9 and 10 of the Circular if read conjointly, clearly envisagesthat the present instructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effecteven if is less than Rs.20 lac, can be preferred in High Courts. Taking note of the CBDT Circular dt. 10/12/2015 and thetax effect which indisputably in the instant case is less thanRs.20 lac, much less than what has been prescribed for filingappeals before the High Courts, deserves to be dismissed asnot pressed. However, it is made clear that the substantialquestions of law raised in the instant appeal, if any, are leftopen to be examined in an appropriate proceeding, if arises infuture. At the same time we consider it appropriate to observethat if the appeal falls in any of the exceptions as referred to inthe Circular dt. 10/12/2015, the Revenue will be at liberty tomove an application for recalling of the order if so advised. Accordingly, in the light of the CBDT Circular dated10.12.2015 the appeal is dismissed as not pressed. (VINIT KUMAR MATHUR)J. (K.S. JHAVERI)J. A.Sharma/49