Income Tax Appeal (Ita) v. M/S Zenith Commercial Agencies

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JAIPUR BENCH, JAIPUR ------------------------------------------------------ 1. INCOME TAX APPEAL (ITA) No.38/2004COMMISSIONER OF INCOME TAX, KotaV/SM/s. Zenith Commercial Agencies2. INCOME TAX APPEAL (ITA) No.44/2004COMMISSIONER OF INCOME TAX, KotaV/SM/s. Zenith Commercial Agencies3. INCOME TAX APPEAL (ITA) No.84/2005Income Tax Officer Ward-I, AjmerV/SM/S. Triveni Pharma, Ajmer 4. INCOME TAX APPEAL (ITA) No.13/2008COMMISSIONER OF INCOME TAX, Jaipur-IIV/SM/S. S.P.C. Infrastructure Pvt. Ltd.5. INCOME TAX APPEAL (ITA) No.116/2008COMMISSIONER OF INCOME TAX, Jaipur-II, Jaipur V/SRajasthan State Mines & Minerals6. INCOME TAX APPEAL (ITA) No.356/2008COMMISSIONER OF INCOME TAXV/SRajasthan Patrika 7. INCOME TAX APPEAL (ITA) No.530/2008COMMISSIONER OF INCOME TAXV/SArvind Gupta8. INCOME TAX APPEAL (ITA) No.537/2008COMMISSIONER OF INCOME TAXV/SM/s S.S. Jain9. INCOME TAX APPEAL (ITA) No.913/2008Commissioner of Income Tax,AlwarV/SM/s Mount Shivalik Ltd.10. INCOME TAX APPEAL (ITA) No.14/2009COMMISSIONER OF INCOME TAXV/SMaharaja Shree Ummaid Mills 11. INCOME TAX APPEAL (ITA) No.213/2009COMMISSIONER OF INCOME TAX, Jaipur V/SM/S. Gem Exports12. INCOME TAX APPEAL (ITA) No.219/2009COMMISSIONER OF INCOME TAXV/SAbdul Sahid13. INCOME TAX APPEAL (ITA) No.223/2009COMMISSIONER OF INCOME TAX, JAIPURV/SM/s. Bhuramal Rajmal Surana14. INCOME TAX APPEAL (ITA) No.238/2009Commissioner of Income Tax V/SMahesh Chand Gupta15. INCOME TAX APPEAL (ITA) No.265/2009Commissioner of Income Tax V/SM/S. S.L. Exports16. INCOME TAX APPEAL (ITA) No.274/2009COMMISSIONER OF INCOME TAXV/SM/s. Aditya Gems17. INCOME TAX APPEAL (ITA) No.282/2009COMMISSIONER OF INCOME TAX, Jaipur V/SM/s. Ahimsa Holdings Pvt. Ltd.18. INCOME TAX APPEAL (ITA) No.283/2009COMMISSIONER OF INCOME TAX, Jaipur V/SM/s. Ahimsa Holdings Pvt. Ltd.19. INCOME TAX APPEAL (ITA) No.302/2009COMMISSIONER OF INCOME TAXV/SM/S. Arvind Gupta20. INCOME TAX APPEAL (ITA) No.2/2010THE COMMISSIONER OF INCOME TAX, Jaipur V/SM/S. Prabhu Dayal Kanojia21. INCOME TAX APPEAL (ITA) No.73/2010THE COMMISSIONER OF INCOME TAX, Jaipur V/S M/S. Shekhawati Art & Craft 22. INCOME TAX APPEAL (ITA) No.77/2010THE COMMISSIONER OF INCOME TAX, Jaipur V/SSikar Kendriya Saha Bank Ltd.23. INCOME TAX APPEAL (ITA) No.29/2011COMMISSIONER OF INCOME TAX, JAIPURV/SM/s. Tab India Granies Pvt. Ltd.24. INCOME TAX APPEAL (ITA) No.79/2011COMMISSIONER OF INCOME TAX, JAIPURV/SM/S. Wood Crafts25. INCOME TAX APPEAL (ITA) No.82/2011COMMISSIONER OF INCOME TAX, JAIPURV/SM/S. Kapish Colonizers Pvt. Ltd.26. INCOME TAX APPEAL (ITA) No.155/2011COMMISSIONER OF INCOME TAX, JAIPURV/SM/S. Mahesh Chand Gupta27. INCOME TAX APPEAL (ITA) No.290/2011COMMISSIONER OF INCOME TAX, JAIPURV/SM/S. Gems Exports28. INCOME TAX APPEAL (ITA) No.319/2011COMMISSIONER OF INCOME TAXV/SSunil Health Care29. INCOME TAX APPEAL (ITA) No.344/2011COMMISSIONER OF INCOME TAX, Jaipur V/sMahesh Chand Gupta30. INCOME TAX APPEAL (ITA) No.370/2011COMMISSIONER OF INCOME TAX, JAIPURV/SM/s Shri Saddik Hussain Shaik31. INCOME TAX APPEAL (ITA) No.364/2011COMMISSIONER OF INCOME TAX, JAIPURV/SM/s Shri Saddik Hussain Shaik 32. INCOME TAX APPEAL (ITA) No.484/2011 32. INCOME TAX APPEAL (ITA) No.484/2011 The COMMISSIONER OF INCOME TAXV/SM/S. Komal Verma and party33. INCOME TAX APPEAL (ITA) No.532/2011COMMISSIONER OF INCOME TAX, AlwarV/SM/S. Mount Shivalik Industries Ltd.34. INCOME TAX APPEAL (ITA) No.596/2008COMMISSIONER OF INCOME TAX, AlwarV/SM/S. Mount Shivalik India Ltd.35. INCOME TAX APPEAL (ITA) No.648/2008COMMISSIONER OF INCOME TAX, AlwarV/SM/S. Mount Shivalik India Ltd.36. INCOME TAX APPEAL (ITA) No.650/2008THE COMMISSIONER OF INCOME TAX, ALWARV/SM/S. Mount Shivalik India Ltd.37. INCOME TAX APPEAL (ITA) No.553/2011THE COMMISSIONER OF INCOME TAXV/sShri Nanak Ram38. INCOME TAX APPEAL (ITA) No.145/2008THE COMMISSIONER OF INCOME TAXV/sShri Kripal Das Batwani39. INCOME TAX APPEAL (ITA) No.602/2011THE COMMISSIONER OF INCOME TAXV/SMahesh Chand Gupta40. INCOME TAX APPEAL (ITA) No.656/2011COMMISSIONER OF INCOME TAX, Jaipur V/SShri Mahesh Chand Gupta41. INCOME TAX APPEAL (ITA) No.661/2011COMMISSIONER OF INCOME TAX-I, Jaipur V/SShri Dhamendra Tak42. INCOME TAX APPEAL (ITA) No.670/2011COMMISSIONER OF INCOME TAX-I, Jaipur V/SM/S. Gem Paradise 43. INCOME TAX APPEAL (ITA) No.25/2012 COMMISSIONER OF INCOME TAX, Jaipur V/SSmt. Manju Kaushik 44. INCOME TAX APPEAL (ITA) No.158/2012COMMISSIONER OF INCOME TAX Jaipur-II Jaipur V/SM/s. Dangayach Hotels Pvtd. Ltd.45. INCOME TAX APPEAL (ITA) No.160/2012COMMISSIONER OF INCOME TAX Jaipur-II Jaipur V/SSmt. Anita Kaushal46. INCOME TAX APPEAL (ITA) No.241/2012Amit Bhandari V/SCOMMISSIONER OF INCOME TAX Jaipur-II Jaipur 47. INCOME TAX APPEAL (ITA) No.31/2012Commissioner Of Income Tax, Jaipur v/s.Amit Bhandari48. INCOME TAX APPEAL (ITA) No.11/2013Commissioner Of Income Tax, Alwar v/s.Shiv Shankar through L/H Usha Rani 49. INCOME TAX APPEAL (ITA) No.63/2008The Commissioner Of Income Taxv/s.Shri B.P. Khandelwal50. INCOME TAX APPEAL (ITA) No.549/2011Commissioner Of Income Tax-III, Kota v/s.Sheetal Das Chandani51. INCOME TAX APPEAL (ITA) No.6/2014Commissioner Of Income Tax, Jaipur-III v/s.M/S. Mangi Lal & Party52. INCOME TAX APPEAL (ITA) No.130/2014Commissioner Of Income Tax, Jaipur-III v/s.Shri Chouth Mal Jangir Date of order : 26.08.2016 HON'BLE MR.K.S. JHAVERI,J.HON'BLE MR.AJAY RASTOGI,J. Ms. Parintoo Jain,Mr. R.B. Mathur,Mr. Sameer Jain,Mrs. Rakhi VimalMr. Anuroop singhi, -6- Mr. P.K. Kasliwal,Mr. Satish Verma,Mr. Rakesh K. Byadwal, for the appellants. Ms. Anupama Parashar,Mr. J.R. Ranka,Ms. Manisha Sharma,Mr. Anant Kasliwal,Mr. Sanjay Jhanwar,Mr. N.L. Agarwal,Mr. T.C. Jain,Mr. N.K. Baid,Mr. Dinesh Kala,Mr. Mahendra Gargeiya,Mr. Siddharth Ranka,Mr. Muzaffar Iqbal,Mr. Ankur Rastogi,Mr. Ram Kumar Sharma,Mr. Gujan Pathak,Mr. Rajendra Prasad,Ms. Alankrita Sharma,Mr. A.K. Sharma,Mr. Vivek Singhal,Mr. R.B. Mathur,Mr. Ajay Gupta, for the respondents. JUDGMENT--------- Instant 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 CentralBoard of Direct Taxes dated 10.12.2015 in exercise of itspower u/sec. 268A (1) of the Income-tax Act 1961 insupersession of the Boards instruction No.5/2014dt.10.7.2014 regularising the monetary limits for filingthe appeals by the Revenue before the Tribunal, HighCourts and Apex Court with an object for reducinglitigation. Relevant para nos.3, 8, 9 and 10 reads adinfra :- “3.Henceforth, appeals/SLPs shall not be filed in caseswhere the tax effect does not exceed the monetary limitsgiven hereunder :- S.Appeals in Income-taxMonetary Limit (inNo.mattersRs.)3Before Supreme Court25,00,000/- A Circular No.21/2015 has been issued by the CentralBoard of Direct Taxes dated 10.12.2015 in exercise of itspower u/sec. 268A (1) of the Income-tax Act 1961 insupersession of the Boards instruction No.5/2014dt.10.7.2014 regularising the monetary limits for filingthe appeals by the Revenue before the Tribunal, HighCourts and Apex Court with an object for reducinglitigation. Relevant para nos.3, 8, 9 and 10 reads adinfra :- “3.Henceforth, appeals/SLPs shall not be filed in caseswhere the tax effect does not exceed the monetary limitsgiven hereunder :- S.Appeals in Income-taxMonetary Limit (inNo.mattersRs.)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.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, Instructionor Circular has been held to be illegal or ultra vires,or(c)Where Revenue Audit objection in the case hasbeen 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 appealin cases 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 be withdrawn/notpressed. Appeals before the Supreme Court will begoverned by the instructions on this subject, operativeat the time when such appeal was filed.” The extract of the paragraphs referred to supra,clearly indicates that the limits specified in para 3 maynot apply to certain exceptions specified in para 8, atthe same time para nos.9 and 10 of the Circular if readconjointly, 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 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 is less 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 the exceptionsas referred to in the Circular dt. 10/12/2015, theRevenue will be at liberty to move an application forrecalling of the order if so advised. Accordingly, in the light of the CBDT Circular dated10.12.2015 the appeals stand dismissed as not pressed. Let a copy of this order be placed in each fileseparately. (Ajay Rastogi),J. (K.S. Jhaveri),J. Brijesh