Commissioner Of Income Tax, Jaipur-Ii, Jaipur v. M/S.subhlaxmi Exports

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR D.B. INCOME TAX APPEAL NO.327/2008 COMMISSIONER OF INCOME TAX, JAIPUR-II, JAIPURVS.M/S.SUBHLAXMI EXPORTS DATE OF ORDER :: 15[th] July, 2016 HON'BLE MR.JUSTICE MOHAMMAD RAFIQHON'BLE MR.JUSTICE DINESH CHANDRA SOMANI******* Shri R.B. Mathur for the appellantShri P.K. Kasliwal for the respondent. This appeal is directed against order of the Income Tax Appellate Tribunal dated 27.07.2007 andindisputably, the tax effect in this appeal, as broughtto our notice, is less than Rs.20 lac. The Central Board of Direct Taxes, in exerciseof its power u/sec. 268A (1) of the Income-tax Act 1961in supersession of the Boards instruction No.5/2014dt.10.7.2014, issued Circular No. 21/2015 dated10.12.2015 providing the monetary limits for filingappeals by the Revenue before the Tribunal, High Courtsand Apex Court with an object to reduce litigation.Relevant para nos.3, 8, 9 and 10 reads as under:- “3.Henceforth, appeals/SLPs shall not befiled in cases where the tax effect does notexceed the monetary 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 bedecided on merits of the case.4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to thefollowing issues should be contested on meritsnotwithstanding that the tax effect entailedis less than the monetary limits specified inpara 3 above or there is no tax effect: (a) Where the Constitutional validity ofthe provisions of an Act or Rule are underchallenge, 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 anddirect tax matters other than Income tax.Filing of appeals in other Direct tax mattersshall continue to be governed by relevantprovisions of statute & rules. Further,filing of appeal in cases of Income Tax, wherethe tax effect is not quantifiable or notinvolved, such as the case of registration oftrusts or institutions under section 12 A ofthe IT Act, 1961, shall not be governed by thelimits specified in para 3 above and decisionto file appeal in such cases may be taken onmerits of a particular case. 10.Thisinstructionwillapplyretrospectively to pending appeals and appealstobefiledhenceforthinHighCourts/Tribunals. Pending appeals below thespecified tax limits in para 3 above may bewithdrawn/not pressed. Appeals before theSupreme Court will be governed by theinstructions on this subject, operative at thetime when such appeal was filed.” The extract of the paragraphs referred to supra, clearly indicates that limits specified in para 3may not apply to certain exceptions specified in para 8.Para nos.9 and 10 of the Circular if read conjointly,clearly envisage that the present instructions willapply retrospectively to all the pending appeals andappeals to be filed henceforth in High Courts/Tribunals,subject to certain exceptions, where the tax effect evenif is less than Rs.20 lac, can be preferred in HighCourts. Taking note of the CBDT Circular dt. 10/12/2015 and considering that in this matter tax effect beingless than what has been prescribed for filing appealbefore the High Courts, the Revenue has chosen not topress it. It is, however, 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 deem it appropriate to observe that if RS/294 Taking note of the CBDT Circular dt. 10/12/2015 and considering that in this matter tax effect beingless than what has been prescribed for filing appealbefore the High Courts, the Revenue has chosen not topress it. It is, however, 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 deem it appropriate to observe that if RS/294 this appeal falls in any of the exceptions as referredto in the Circular dt. 10/12/2015, the Revenue will beat liberty to move an application for revival thereof ifso advised. Accordingly, in the light of the CBDT Circulardated 10.12.2015, the appeal stands dismissed as notpressed. (Dinesh Chandra Somani),J. (Mohammad Rafiq),J.