Commissioner Of Income Tax, Jaipur-Ii, Jaipur v. Rajasthan Financial Corporation Ltd. Udyog Bhawan Tilak Marg, Jaipur

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH, JAIPUR------------------------------------------------------ D.B. Income Tax Appeal No.315/2009. Commissioner of Income Tax, Jaipur-II, Jaipur.Vs. Rajasthan Financial Corporation Ltd. Udyog Bhawan Tilak Marg, Jaipur. Date of order : 05.10.2016. HON'BLE MR. JUSTICE K.S. JHAVERIHON'BLE MR. JUSTICE BANWARI LAL SHARMA Mr. Anuroop Singhi for the appellant.Mr. Vivek Singhal for the respondent. JUDGMENT --------- 1.Instant appeal is directed against order of the Income TaxAppellate Tribunal and indisputably the tax effect as brought to ournotice, is less than Rs.20 lac. 2.A Circular No.21/2015 has been issued by the Central Board ofDirect Taxes dated 10.12.2015 in exercise of its power u/sec. 268A (1)of the Income-tax Act 1961 in supersession of the Boards instructionNo.5/2014 dt.10.7.2014 regularising the monetary limits for filing theappeals by the Revenue before the Tribunal, High Courts and ApexCourt with an object for reducing litigation. Relevant para nos.3, 8, 9and 10 reads ad infra :- “3.Henceforth, appeals/SLPs shall not be filed in caseswhere the tax effect does not exceed the monetary limitsgiven hereunder :- It is clarified that an appeal should not be filed merelybecause the tax effect in a case exceeds the monetary limitsprescribed above. Filing of appeal in such cases is to bedecided on merits of the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to the following issuesshould be contested on merits notwithstanding that the taxeffect entailed is less than the monetary limits specified inpara 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisionsof an Act or Rule are under challenge, or(b)Where Board's order, Notification, Instruction orCircular has been held to be illegal or ultra vires, or (c)Where Revenue Audit objection in the case hasbeen accepted 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 mattersshall continue to be governed by relevant provisions ofstatute & rules. Further, filing of appeal in cases of IncomeTax, where the tax effect is not quantifiable or not involved,such as the case of registration of trusts or institutions undersection 12 A of the IT Act, 1961, shall not be governed by thelimits specified in para 3 above and decision to file appeal insuch cases 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.” 3.The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply to certain exceptions specified in para 8, at the same time para nos.9 and 10 of the Circular ifread conjointly, clearly envisages that the present instructions will applyretrospectively to all the pending appeals and appeals to be filedhenceforth in High Courts/Tribunals, subject to exceptions where the tax effect even if is less than Rs.20 lac, can be preferred in High Courts. 3.The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply to certain exceptions specified in para 8, at the same time para nos.9 and 10 of the Circular ifread conjointly, clearly envisages that the present instructions will applyretrospectively to all the pending appeals and appeals to be filedhenceforth in High Courts/Tribunals, subject to exceptions where the tax effect even if is less than Rs.20 lac, can be preferred in High Courts. 4.Taking note of the CBDT Circular dt. 10/12/2015 and the tax effectwhich indisputably in the instant case is less than Rs.20 lac, much lessthan what has been prescribed for filing appeal before the High Courts,deserves to be dismissed as not pressed. However, it is made clearthat the substantial questions of law raised in the instant appeals, if any,are left open to be examined in an appropriate proceeding, if arises infuture. At the same time we consider it appropriate to observe that if theappeal falls in any of the exceptions as referred to in the Circular dt.10/12/2015, the Revenue will be at liberty to move an application forrecalling of the order if so advised. 5.Accordingly, in the light of the CBDT Circular dated 10.12.2015 theappeal stands dismissed as not pressed. (BANWARI LAL SHARMA), J. (K.S. JHAVERI), J. bblm