D.b. Income Tax Appeal v. Vikram Dawra

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR D.B. Income Tax Appeal No.10/2009Commissioner of Income Tax v. Vikram Dawra Date of order6.1.2016 Hon'ble Mr. Justice Ajay RastogiHon'ble Mr. Justice J.K. Ranka Mr. R.B. Mathur withMr. Nikhil Simlote, counsel for appellant By the Court 1.This appeal has been preferred against order dated 27.6.2008 ofthe Income Tax Appellate Tribunal. 2.As per the questions framed the total income in dispute is below15 lac on which tax @ 30% may be less than 5 lac. The matter ispending since 2009 and still service on the respondent assessee has notbeen effected so far. 3.It is brought to our notice that a Circular has been issued by theCentral Board of Direct Taxes dated 10.12.2015 in exercise of itspower u/sec. 268A (1) of the Income-tax Act 1961 laying downrevision of monetary limits for filing of appeals by the Departmentbefore the Tribunal and High Courts and SLP before Supreme Courtkeeping in view the measures for reducing litigation. Para 3 of the Circular reads as under :- “3.Henceforth, appeals/SLPs shall not be filed in caseswhere the tax effect does not exceed the monetary limitsgiven hereunder :- S. No.Appeals in Income-tax mattersMonetary Limit (in Rs.)1Before Appellate Tribunal10,00,000/-2Before High Court20,00,000/-3Before Supreme Court25,00,000/-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 monetary limitsprescribed above. Filing of appeal in such cases is to bedecided on merits of the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.xxxxxxxxx 9.The monetary limits specified in para 3 above shallnot apply 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 notinvolved, such as the case of registration of trusts orinstitutions 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 meritsof 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.” And laying down other conditions as well which has to be considered by the Assessing Officer or Appellate Authority as well the CBDT in paras 9 and 10 of the Circular it has been observed that the monetarylimits specified in para 3 above shall not apply to writ matters anddirect tax matters, and at the same time these instructions will applyretrospectively to the pending appeals and appeals to be filedhenceforth in High Courts/Tribunals, and also before the SupremeCourt. 4.Taking note of the aforesaid Circular and the tax effect in theinstant appeal which is much less than what has been prescribed forfiling appeal before the High Courts, no purpose would be served tocontinue the present appeal any further. 5.Accordingly, in the light of the CBDT Circular dated 10.12.2015the appeal is dismissed. (J.K. Ranka) J. (Ajay Rastogi) J. db40 [All corrections made in the judgment/order have been incorporated in the judgment/order being emailed.]Deepankar Bhattacharya PS