D.b. Income Tax Appeal v. M/S. Rajasthan State Industrial Development & Investment Corporation Ltd

1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN JAIPUR BENCH, JAIPUR 1.D.B. Income Tax Appeal No.56/2007CIT, Jaipur Vs. M/s. Rajasthan State Industrial Development & Investment Corporation Ltd. 2.D.B. Income Tax Appeal No.99/2004CIT, Jaipur-II Vs. M/s. Rajasthan State Industrial Development & Investment Corporation Ltd. 3.D.B. Income Tax Appeal No.318/2009 CIT, Jaipur-II Vs. M/s. Rajasthan State Industrial Development & Investment Corporation Ltd. Date of Order: 30/05/2016 HON'BLE MR. JUSTICE M.N. Bhandari HON'BLE MR. JUSTICE J.K. RANKA Mr. O.P. Pareek on behalf of Mr. Anuroop Singhi, for appellants. Mr. P.K. Kasliwal, for respondents. These appeals are directed against order of theIncome Tax Appellate Tribunal and indisputably the taxeffect as brought to our notice, is less than Rs.20 lac. A Circular No.21/2015 has been issued by the Central Board of Direct Taxes dated 10.12.2015 inexercise of its power u/sec. 268A (1) of the Income-taxAct 1961 in supersession of the Boards instructionNo.5/2014 dt.10.7.2014 regularising the monetary limitsfor filing the appeals by the Revenue before theTribunal, High Courts and Apex Court with an object forreducing litigation. Relevant para nos.3, 8, 9 and 10reads 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 be decidedon merits of the case.4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to thefollowing issues should be contested on meritsnotwithstanding that the tax effect entailed isless than the monetary limits specified in para3 above or there is no tax effect:(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, filingof appeal in cases of Income Tax, where the taxeffect is not quantifiable or not involved,such as the case of registration of trusts orinstitutions under section 12 A of the IT Act,1961, shall not be governed by the limitsspecified in para 3 above and decision to fileappeal in such cases may be taken on merits ofa particular case. 10.Thisinstructionwillapplyretrospectively to pending appeals and appealstobefiledhenceforthinHighCourts/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 at thetime 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 para 8,at the same time para nos.9 and 10 of the Circular ifread conjointly, clearly envisages that the presentinstructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in High Courts/Tribunals, subject to exceptions where thetax 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 para 8,at the same time para nos.9 and 10 of the Circular ifread conjointly, clearly envisages that the presentinstructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in High Courts/Tribunals, subject to exceptions where thetax effect even if is less than Rs.20 lac, can bepreferred in High Courts. Taking note of the CBDT Circular dt. 10/12/2015 andthe tax effect which indisputably in the instant case isless than Rs.20 lac, much less than what has beenprescribed for filing appeal before the High Courts,deserves to be dismissed as not pressed. However, it ismade clear that the substantial questions of law raisedin the instant appeals, if any, are left open to beexamined in an appropriate proceeding, if arises infuture. At the same time we consider it appropriate toobserve that if the appeal falls in any of theexceptions as referred to in the Circular dt.10/12/2015, the Revenue will be at liberty to move anapplication for recalling of the order if so advised. Accordingly, in the light of the CBDT Circulardated 10.12.2015 the appeals stand dismissed as notpressed. Let a copy of this order be placed in each connected file. (J.K. RANKA), J. (M.N. Bhandari),J. S.Kumawat Certificate- All corrections made in the judgment/order have beenincorporated in the judgment/order being e-mailed. S.Kumawat Jr. P.A