Commissioner Of Income Tax, Kota v. Shri Kanhaiya Lal Choudhary, Todarai Singh, District Tonk

1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR. 1.DB INCOME TAX APPEAL NO.3/2010 Commissioner of Income Tax, Kota. Versus Shri Kanhaiya Lal Choudhary, Todarai Singh, District Tonk. 2.DB INCOME TAX APPEAL NO.7/2010 Commissioner of Income Tax, Kota. Versus Shri Kanhaiya Lal Choudhary, Todarai Singh, District Tonk. DATE OF ORDER ::: 07.12.2016. HON'BLE MR. JUSTICE K.S. JHAVERIHON'BLE MR. JUSTICE DINESH MEHTA Mr. Daksh Pareek, for the appellant.Mr. Mahendra Gargiya, for the respondent. BY THE COURT: 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 Boardsinstruction No.5/2014 dt.10.7.2014 regularising the monetary limitsfor filing the appeals by the Revenue before the Tribunal, HighCourts and Apex Court with an object for reducing litigation.Relevant para nos.3, 8, 9 and 10 reads ad infra :- “3.Henceforth, appeals/SLPs shall not be filed incases where the tax effect does not exceed themonetary limits given hereunder :- S.Appeals in Income-tax mattersMonetary Limit (inNo.Rs.)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 merelybecause the tax effect in a case exceeds the monetarylimits prescribed above. Filing of appeal in such cases isto be decided on merits of the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to the following issuesshould be contested on merits notwithstanding that thetax effect entailed is less than the monetary limitsspecified in para 3 above 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 be illegal or ultravires, or (c)Where Revenue Audit objection in the casehas been accepted by the Department, or(d)Where the addition relates to undisclosedforeign assets/bank accounts. 9.The monetary limits specified in para 3 above shallnot apply to writ matters and direct tax matters otherthan Income tax. Filing of appeals in other Direct taxmatters shall continue to be governed by relevantprovisions of statute & 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 under section 12 A ofthe IT Act, 1961, shall not be governed by the limitsspecified 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 topending 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 the timewhen such appeal was filed.”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 the timewhen such appeal was filed.” 10.This instruction will apply retrospectively topending 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 the timewhen such appeal was filed.”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 the timewhen such appeal was filed.” 3.The extract of the paragraphs referred to supra, clearlyindicates that the limits specified in para 3 may not apply to certainexceptions specified in para 8, at the same time para nos.9 and 10 ofthe Circular if read conjointly, clearly envisages that the presentinstructions will apply retrospectively to all the pending appeals andappeals to be filed henceforth in High Courts/Tribunals, subject toexceptions where the tax effect even if is less than Rs.20 lac, can bepreferred in High Courts. 4.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 appeal before theHigh Courts, deserves to be dismissed as not pressed. However, itis made clear that the substantial questions of law raised in theinstant appeals, if any, are left open to be examined in an appropriateproceeding, if arises in future. At the same time we consider itappropriate to observe that if the appeal falls in any of the exceptionsas referred to in the Circular dt. 10/12/2015, the Revenue will be atliberty to move an application for recalling of the order if so advised. 5.Accordingly, in the light of the CBDT Circular dated 10.12.2015the appeal stands dismissed as not pressed. 6.Copy of this order be placed in each file. (DINESH MEHTA), J. (K.S. JHAVERI), J. Asheesh Kr. Yadav2-3