Ita/72/2000 Of Commissioner Of Income Tax Jai v. Surjeet Singh Mahendra Singh And

1. D.B. Income Tax Appeal No.72/20002. D.B. Income Tax Appeal No.73/2000 05.07.2016. HON'BLE MR.JUSTICE AJAY RASTOGIHON'BLE MR. JUSTICE J.K. RANKA Mr. R.B.Mathur Adv., for appellants. Mr. Mukesh Meena Adv. on behalf ofMrs. Parinitoo Jain Adv., for respondents. Instant appeals are directed against order of the IncomeTax Appellate Tribunal and indisputably the tax effect as broughtto 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 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 forreducing litigation. Relevant para nos.3, 8, 9 and 10 reads adinfra :- “3.Henceforth, appeals/SLPs shall not be filed in cases where the tax effectdoes not exceed the monetary limits given hereunder :- (a) Where the Constitutional validity of the provisions of an Act or Ruleare under challenge, or(b)Where Board's order, Notification, Instruction or Circular hasbeen held to be illegal or ultra vires, or (c)Where Revenue Audit objection in the case has been accepted bythe Department, or(d)Where the addition relates to undisclosed foreign assets/bankaccounts. 9.The monetary limits specified in para 3 above shall not apply to writmatters and direct tax matters other than Income tax. Filing of appeals in otherDirect tax matters shall continue to be governed by relevant provisions of statute& rules. Further, filing of appeal in cases of Income Tax, where the tax effect isnot 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 thelimits specified in para 3 above and decision to file appeal in such cases may betaken on merits of a particular case. 10.This instruction will apply retrospectively to pending appeals andappeals to be filed henceforth in High Courts/Tribunals. Pending appeals belowthe specified tax limits in para 3 above may be withdrawn/not pressed. Appealsbefore the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.” The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply tocertain exceptions specified in para 8, at the same time paranos.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 thanRs.20 lac, much less than what has been prescribed for filingappeal before the High Courts, deserves to be dismissed as notpressed. However, it is made clear that the substantial questionsof law raised in the instant appeals, if any, are left open to beexamined in an appropriate proceeding, if arises in future. Atthe same 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 an application for recalling 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 file separately. (J.K. RANKA),J. (AJAY RASTOGI),J. S. Kumawat.Jr. P.A.All corrections made in the judgment/order have been incorporated in the judgment/order being e-mailed.S.KumawatJr.P.A.