Ita/104/2002 Of Dy Commissioner Of Income Tax v. Shri Gayoor Ahmad

1. D.B.Income Tax Appeal No.41/2002.2. D.B.Income Tax Appeal No.75/2002.3. D.B.Income Tax Appeal No.104/2002.4. D.B.Income Tax Appeal No.120/2002.5. D.B.Income Tax Appeal No.134/2002.6. D.B.Income Tax Appeal No.162/2002.7. D.B.Income Tax Reference No.25/2003.8. D.B.Income Tax Appeal No.138/2004. 31.03.2016. HON'BLE MR.JUSTICE AJAY RASTOGIHON'BLE MR.JUSTICE PRAKASH GUPTA Mr.Anuroop Singhi]Mr.R.B.Mathur]Mr.Ashwini Jaiman] Counsel for appellants.Mr.Anant Kasliwal]Mr.R.K.Yadav] Counsel for respondents.Mr.Sanjay Jhanwar]Mr.S.K.Singhal]***** Instant appeals are directed against order of the Income TaxAppellate Tribunal and indisputably the tax effect as brought to ournotice, 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 the Boardsinstruction No.5/2014 dt.10.7.2014 regularising the monetary limitsfor filing the appeals by the Revenue before the Tribunal, HighCourts and Apex Court with an object for reducing litigation.Relevant para nos.3, 8, 9 and 10 reads ad infra :- “3.Henceforth, appeals/SLPs shall not be filed in cases where the tax effect doesnot exceed the monetary limits given hereunder :- It is clarified that an appeal should not be filed merely because the tax effect in acase exceeds the monetary limits prescribed above. Filing of appeal in such cases isto be decided on merits of the case.4.xxxxxxxxx5.xxxxxxxxx -2-6.xxxxxxxxx7.xxxxxxxxx8.Adverse judgments relating to the following issues should be contested onmerits notwithstanding that the tax effect entailed is less than the monetary limitsspecified in para 3 above or there is no tax effect:(a) Where the Constitutional validity of the provisions of an Act or Rule areunder challenge, or(b)Where Board's order, Notification, Instruction or Circular has beenheld to be illegal or ultra vires, or(c)Where Revenue Audit objection in the case has been accepted by theDepartment, or(d)Where the addition relates to undisclosed foreign assets/bankaccounts. 9.The monetary limits specified in para 3 above shall not apply to writ mattersand direct tax matters other than Income tax. Filing of appeals in other Direct taxmatters shall continue to be governed by relevant provisions of statute & rules.Further, filing of appeal in cases of Income Tax, where the tax effect is notquantifiable or not involved, such as the case of registration of trusts or institutionsunder section 12 A of the IT Act, 1961, shall not be governed by the limits specifiedin para 3 above and decision to file appeal in such cases may be taken on merits of aparticular case. 10.This instruction will apply retrospectively to pending appeals and appeals tobe filed henceforth in High Courts/Tribunals. Pending appeals below the specifiedtax limits in para 3 above may be withdrawn/not pressed. Appeals before theSupreme Court will be governed by the instructions on this subject, operative at thetime when such appeal was filed.” The extract of the paragraphs referred to supra, clearlyindicates that the limits specified in para 3 may not apply to certainexceptions specified in para 8, at the same time para nos.9 and 10of the Circular if read conjointly, clearly envisages that the presentinstructions will apply retrospectively to all the pending appealsand appeals to be filed henceforth in High Courts/Tribunals,subject to exceptions where the tax effect even if is less than Rs.20lac, 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 appeals, if any, are left open to be examined inan appropriate proceeding, if arises in future. At the same time we 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 appeals, if any, are left open to be examined inan appropriate proceeding, if arises in future. At the same time we consider it appropriate to observe that if the appeal falls in any ofthe exceptions as referred to in the Circular dt. 10/12/2015, theRevenue will be at liberty to move an application for recalling of theorder 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 file separately. (PRAKASH GUPTA),J. (AJAY RASTOGI),J. All corrections made in judgment/order have beenincorporated in the judgment/order being emailed.Solanki DS, P.S.