Commissioner Of Income Tax Kot v. Shri Shrinath Soni

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH ATJAIPUR D.B. Income Tax Appeal No. 420 / 2008 Commissioner Of Income Tax Kot ----Appellant Versus Shri Shrinath Soni ----Respondent _____________________________________________________ For Appellant(s) : Mr. R.B. Mathur _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE VINIT KUMAR MATHURJudgment / Order 25/01/2017 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 cases where the tax effectdoes not exceed the monetary limits given 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 on merits ofthe case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to the following issues shouldbe contested on merits notwithstanding that the tax effectentailed is less than the monetary limits specified in para 3 aboveor there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act orRule 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 than Incometax. Filing of appeals in other Direct tax matters shall continue tobe governed by relevant provisions of statute & rules. Further,filing of appeal in cases of Income Tax, where the tax effect is notquantifiable or not involved, such as the case of registration oftrusts or institutions under section 12 A of the IT Act, 1961, shallnot be governed by the limits specified in para 3 above anddecision to file appeal in such cases may be taken on merits of aparticular case. 10.This instruction will apply retrospectively to pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals. Pending appeals below the specified tax limitsin para 3 above may be withdrawn/not pressed. Appeals beforethe Supreme Court will be governed by the instructions on thissubject, operative at the time when such appeal was filed.” The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time para nos.9 and 10 of the Circular if read conjointly, clearly envisages that thepresent instructions will apply retrospectively to all the pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect evenif is less than Rs.20 lac, can be preferred in High Courts. The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time para nos.9 and 10 of the Circular if read conjointly, clearly envisages that thepresent instructions will apply retrospectively to all the pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect evenif is less than Rs.20 lac, can be preferred in High Courts. Taking note of the CBDT Circular dt. 10/12/2015 and the taxeffect which indisputably in the instant case is less than Rs.20 lac,much less than what has been prescribed for filing appeals beforethe High Courts, deserves to be dismissed as not pressed.However, it is made clear that the substantial questions of lawraised in the instant appeal, if any, are left open to be examined inan appropriate proceeding, if arises in future. At the same time weconsider it appropriate to observe that if the appeal falls in any ofthe exceptions as referred to in the Circular dt. 10/12/2015, theRevenue will be at liberty to move an application for recalling ofthe 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/70