Commissioner Of Income Tax Jaipur-I v. M/S Indo Continental Hotels & Resorts Ltd

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCHAT JAIPUR. D.B. Income Tax Appeal No. 108/2003 Commissioner of Income Tax Jaipur-Ivs. M/s Indo Continental Hotels & Resorts Ltd. DATE OF ORDER ::: 07.09.2016 HON'BLE MR. JUSTICE K.S. JHAVERIHON'BLE MR. JUSTICE Banwari Lal Sharma Mr. Anuroop Singhi, for the appellant. JUDGMENT Instant appeal is directed against order ofthe Income Tax Appellate Tribunal and indisputablythe tax effect as brought to our notice, is lessthan Rs.20 lac. A Circular No.21/2015 has been issued by theCentral Board of Direct Taxes dated 10.12.2015 inexercise of its power u/sec. 268A (1) of theIncome-tax Act 1961 in supersession of the Boardsinstruction No.5/2014 dt.10.7.2014 regularising themonetary limits for filing the appeal by theRevenue before the Tribunal, High Courts and ApexCourt with an object for reducing litigation.Relevant para nos.3, 8, 9 and 10 reads ad infra :- “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 befiled merely because the tax effect in a caseexceeds the monetary limits prescribed above.Filing of appeal in such cases is to be decidedon merits of the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to the followingissuesshouldbecontestedonmeritsnotwithstanding that the tax effect entailed isless than the monetary limits specified in para 3above or there is no tax effect:(a) Where the Constitutional validity of theprovisions of an Act or Rule are under challenge,or (b)Where Board's order, Notification,Instruction or Circular has been held to beillegal or ultra vires, or(c)Where Revenue Audit objection in thecase has been accepted by the Department, or(d)Where the addition relates toundisclosed foreign assets/bank accounts. 9.The monetary limits specified in para 3above shall not apply to writ matters and directtax matters other than Income tax. Filing ofappeals in other Direct tax matters shallcontinue to be governed by relevant provisions ofstatute & rules. Further, filing of appeal incases of Income Tax, where the tax effect is notquantifiable or not involved, such as the case ofregistration of trusts or institutions undersection 12 A of the IT Act, 1961, shall not begoverned by the limits specified in para 3 aboveand decision to file appeal in such cases may betaken on merits of a particular case. 10.This instruction will apply retrospectivelyto pending appeals and appeals to be filedhenceforth in High Courts/Tribunals. Pendingappeals below the specified tax limits in para 3above may be withdrawn/not pressed. Appealsbefore the Supreme Court will be governed by theinstructions on this subject, operative at thetime when such appeal was filed.” The extract of the paragraphs referred tosupra, clearly indicates that the limits specifiedin para 3 may not apply to certain exceptionsspecified in para 8, at the same time para nos.9and 10 of the Circular if read conjointly, clearlyenvisages that the present instructions will applyretrospectively to all the pending appeals andappeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect even if is less than Rs.20 lac, can bepreferred in High Courts. The extract of the paragraphs referred tosupra, clearly indicates that the limits specifiedin para 3 may not apply to certain exceptionsspecified in para 8, at the same time para nos.9and 10 of the Circular if read conjointly, clearlyenvisages that the present instructions will applyretrospectively to all the pending appeals andappeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect even if is less than Rs.20 lac, can bepreferred in High Courts. Taking note of the CBDT Circular dt.10/12/2015 and the tax effect which indisputably inthe instant case is less than Rs.20 lac, much lessthan what has been prescribed for filing appealsbefore the High Courts, deserves to be dismissed asnot pressed. However, it is made clear that thesubstantial questions of law raised in the instantappeal, if any, are left open to be examined in anappropriate proceeding, if arises in future. At thesame time we consider it appropriate to observethat if the appeal falls in any of the exceptionsas referred to in the Circular dt. 10/12/2015, theRevenue will be at liberty to move an applicationfor recalling of the order if so advised. Accordingly, in the light of the CBDT Circulardated 10.12.2015 the appeal stand dismissed as notpressed. (Banwari Lal Sharma), J. (K.S. Jhaveri), J. A.Sharma/97