Commissioner Of Income Tax v. M/S Badru Khan And Party

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH, JAIPUR ------------------------------------------------------ INCOME TAX APPEAL(ITA) No. 107 of 2006 COMMISSIONER OF INCOME TAXV/SM/S BADRU KHAN AND PARTY Date of Judgement : 8.8.2016 HON'BLE MR.AJAY RASTOGI,J.HON'BLE MR.JAINENDRA KUMAR RANKA,J. Mr. ANURUP SINGHI, for the Appellant. JUDGEMENT--------- Instant appeal is directed against order of theIncome Tax Appellate Tribunal and indisputably the taxeffect as brought to our notice, is less than Rs.20lac. 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 the Income-tax Act 1961 in supersession of the Boards instructionNo.5/2014 dt.10.7.2014 regularising the monetarylimits for filing the appeals by the Revenue beforethe Tribunal, High Courts and Apex Court with anobject for reducing litigation. Relevant para nos.3, 8, 9 and 10 reads ad infra :- “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 onmerits notwithstanding that the tax effectentailed is less than the monetary limitsspecified in para 3 above or there is no taxeffect: (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,where the tax effect is not quantifiable ornot involved, such as the case ofregistration of trusts or institutions undersection 12 A of the IT Act, 1961, shall notbe governed by the limits specified in para 3above and decision to file appeal in suchcases may be taken on merits of a particularcase. 10.Thisinstructionwillapplyretrospectively to pending appeals andappeals to be filed henceforth in HighCourts/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 atthe time when such appeal was filed.” The extract of the paragraphs referred to supra,clearly indicates that the limits specified in para 3may not apply to certain exceptions specified in para8, at the same time para nos.9 and 10 of the Circularif read conjointly, clearly envisages that the presentinstructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth inHigh Courts/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 to supra,clearly indicates that the limits specified in para 3may not apply to certain exceptions specified in para8, at the same time para nos.9 and 10 of the Circularif read conjointly, clearly envisages that the presentinstructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth inHigh Courts/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. 10/12/2015and the tax effect which indisputably in the instantcase is less than Rs.20 lac, much less than what hasbeen prescribed for filing appeal before the HighCourts, deserves to be dismissed as not pressed.However, it is made clear that the substantialquestions of law raised in the instant appeal, if any,are left open to be examined in an appropriateproceeding, if arises in future. At the same time weconsider it appropriate to observe that if the appealfalls in any of the exceptions as referred to in theCircular dt. 10/12/2015, the Revenue will be atliberty to move an application for recalling of theorder if so advised. Accordingly, in the light of the CBDT Circulardated 10.12.2015 the appeal stands dismissed as notpressed. (JAINENDRA KUMAR RANKA),J. (AJAY RASTOGI),J.S.KumawatJr. P.A.