Income Tax Officer, Jaipur v. Itat, Jaipur

1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR. (1) D.B. Civil Writ Petition No.9994/2007 Income Tax Officer, JaipurVs.ITAT, Jaipur (2) D.B. Civil Writ Petition No.9995/2007 Income Tax Officer, JaipurVs. ITAT, Jaipur DATE OF JUDGMENT ::: 7.12.2016 HON'BLE MR. JUSTICE K.S. JHAVERIHON'BLE MR. JUSTICE DINESH MEHTA Mr. R.B. Mathur, for the appellant. Mr. N.L. Agarwal, for the respondent. Instant writ petitions are directed against order of theIncome Tax Appellate Tribunal and indisputably the tax effect asbrought 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 its poweru/sec. 268A (1) of the Income-tax Act 1961 in supersession ofthe Boards 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-taxMonetary Limit (inNo.mattersRs.)1Before Appellate Tribunal10,00,000/-2Before High Court20,00,000/- S.Appeals in Income-taxMonetary Limit (inNo.mattersRs.)3Before Supreme Court25,00,000/- It is clarified that an appeal should not be filedmerely because the tax effect in a case exceeds themonetary limits prescribed above. Filing of appeal insuch cases is to be decided on merits of the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to the followingissues should be contested on merits notwithstandingthat the tax effect entailed is less than the monetarylimits specified in para 3 above or there is no taxeffect: (a) Where the Constitutional validity of theprovisions of an Act or Rule are under challenge, or (b)Where Board's order, Notification,Instruction or Circular has been held to be illegal orultra vires, or (c)Where Revenue Audit objection in thecase has 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 otherDirect tax matters shall continue to be governed byrelevant provisions of statute & rules. Further, filingof appeal in cases of Income Tax, where the taxeffect is not quantifiable or not involved, such as thecase of registration of trusts or institutions undersection 12 A of the IT Act, 1961, shall not begoverned by the limits specified in para 3 above anddecision to file appeal in such cases may be taken onmerits 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.9 and 10 of the Circular if read conjointly, clearly envisagesthat the present instructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effecteven if 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.9 and 10 of the Circular if read conjointly, clearly envisagesthat the present instructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effecteven if is less than Rs.20 lac, can be preferred in High Courts. Taking note of the CBDT Circular dt. 10/12/2015 and thetax effect which indisputably in the instant case is less than Rs.20lac, much less than what has been prescribed for filing appealbefore the High Courts, deserves to be dismissed as not pressed.However, it is made clear that the substantial questions of lawraised in the instant writ petitions, if any, are left open to beexamined in an appropriate proceeding, if arises in future. At thesame time we consider it appropriate to observe that if theappeal falls in any of the exceptions as referred to in the Circulardt. 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 Circular dated10.12.2015 the writ petitions stand dismissed as not pressed. Let a copy of this order be placed in each file separately. (Dinesh Mehta), J. (K.S. Jhaveri), J. Brijesh