Itxa/1511/2012 Of The Commissioner Of Income Tax - 2 v. M/S. Umesh Pencils Processors Pvt. Ltd

itxa-1511-12.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1511 OF 2012 WITHINCOME TAX APPEAL NO.1512 OF 2012WITHINCOME TAX APPEAL NO.1526 OF 2012 … The Commissioner of Income Tax-2 ...Appellant v/s. M/s.Umesh Pencils Processors Pvt.Ltd. ...Respondent … Mr.Sureshkumar for the Appellant.Mr.Atul Jasani for the Respondent. ... CORAM : S.C.DHARMADHIKARI & A.A. SAYED, JJ. DATED : 14 NOVEMBER 2014 P.C. We have heard Mr.Sureshkumar appearing in support of these Appeals and Mr.Jasani for the Assessee to oppose. 2.When these Appeals were placed for admission, Mr.Jasani invited our attention to the Circular issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, being Instruction No.3/2011, dated 9[th] February, 2011. 2/3 itxa-1511-12.doc 3. Mr.Jasani, submits that this Circular is addressed to all Chief Commissioners of Income-tax and all Directors General of Income-tax. In para 3 of this Circular, there is a categorical and clear direction not to file Appeals in the High Court in cases where the tax effect does not exceed the monetary limits set out thereunder. As far as this Court is concerned, no Appeal under Section 260-A would be filed if the tax effect is less than Rs.10 lakhs. Mr.Jasani submits that the three Assessment Years, 1998-99, 2000-01 and 2001-02 in relation to which three Income Tax Appeals Nos.4787, 4788 & 4789 of 2011 have been dealt with by the Tribunal. The tax effect in all these Appeals, in aggregate, does not exceed Rs.10 lakhs. Thus para 3 of the Circular is clearly attracted. 4. As usual apprehension of the Revenue is that in the event the Appeal is dismissed only on this count and relying on the Circular, it would be construed that the discussion and reasoning of the Tribunal has met with this Court's approval. It would also mean that the order of the Tribunal has been upheld by this Court. 3/3 itxa-1511-12.doc 5.We are sorry to say that such understanding defeats the Circular itself. Merely, because the tax effect being negligible, that this Court is reluctant to examine the matter on merits and in details. That is to deter filing of frivolous Appeals. When the tax effect is negligible, the outlook should be to save expenses and valuable time of everybody concerned. If that is what is intended to be achieved, then this Circular achieves the same. Such Appeals are dismissed without any adjudication does not mean that this Court has approved the order, the reasoning or the conclusion therein. If any question of law, which is termed as substantial, does arise from the reasoning and the conclusion of the Tribunal, that can be examined by this Court in an appropriate case. By clarifications, which are also unnecessary, Appeals like the present one can be dismissed relying on the Circular. 6.In the light of the above, by clarifying that the questions of law are open for being raised, examined and scrutinized in an appropriate case, we relying on this Circular proceed to dismiss these Appeals. 7.Appeals are ,accordingly, dismissed. No costs. (A.A. SAYED, J.) (S.C.DHARMADHIKARI,J.)