D.b.income Tax Appeal v. Order

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH ATJAIPUR D.B.INCOME TAX APPEAL No. 31 / 2011 Commissioner of Income Tax-I, New Central Revenue Building, Statute Circle, Jaipur (Raj.). ----Appellant Versus Smt. Rashmi Malpani, Prop. M/s. Abhijeet Agencies, Film Colony, Chaura Rasta, Jaipur. ----Respondent _____________________________________________________ For Petitioner(s) : Sh. Anuroop Singhi Adv.For Respondent(s) : Ms. Manisha Surana Adv. _____________________________________________________ HON'BLE MR. JUSTICE AJAY RASTOGIHON'BLE MR. JUSTICE VIJAY KUMAR VYAS 23/02/2017 Order 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 incases where the tax effect does not exceed themonetary limits given hereunder :- S. Appeals in Income-tax Monetary Limit (in No.mattersRs.)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 casesis to be decided on merits of the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx 8.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, Instructionor Circular has been held to be illegal or ultra vires, 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 aboveshall not apply to writ matters and direct tax mattersother than Income tax. Filing of appeals in other Directtax matters 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 Aof the 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 filed henceforth inHigh Courts/Tribunals. Pending appeals below thespecified tax limits in para 3 above may bewithdrawn/not pressed. Appeals before the SupremeCourt will be governed by the instructions on thissubject, operative at the time when such appeal wasfiled.” The extract of the paragraphs referred to supra, clearlyindicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time para nos.9and 10 of the Circular if read conjointly, clearly envisages that thepresent instructions will apply retrospectively to all the pending appeals 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, clearlyindicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time para nos.9and 10 of the Circular if read conjointly, clearly envisages that thepresent instructions will apply retrospectively to all the pending appeals 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 appeal 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 timewe consider it appropriate to observe that if the appeal falls in anyof the 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 stands dismissed as not pressed. (VIJAY KUMAR VYAS)J. (AJAY RASTOGI)J. Dheeraj/163