Ma/198/2018 Of Assistant Commissioner Of Income Tax, Circle 2, Muzaffarpur v. M/S Shyam Bihari, Bhagwanpur Chatti, Muzaffarpur

3 13-12-2018 IN THE HIGH COURT OF JUDICATURE AT PATNAMiscellaneous Appeal No.198 of 2018 ====================================================== Deputy Commissioner Of Income Tax, Circle 2, Patna ====================================================== CORAM: HONOURABLE MR. JUSTICE JYOTI SARAN and HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASADORAL ORDER (Per: HONOURABLE MR. JUSTICE JYOTI SARAN) This appeal is directed against the order dated12.10.2017 passed in I.T.A.No. 138/ Pat/ 2014 by the IncomeTax Appellate Tribunal, Patna Bench, Patna whereby the orderpassed by the Commissioner of Income Tax (Appeals) has beenupheld dismissing the appeal of the department. It is while the appeal is pending consideration beforethis Court that a policy decision has been taken by the Govt. ofIndia, Ministry of Finance in its Department of Revenue,Central Board Direct Taxes bearing Circular No. 3/2018 dated11.7.2018, whereby a decision has been taken not to pursueappeals and Special Leave Petitions where the tax effect doesnot exceed the monetary limits given under paragraph-3 of thecircular. An exception is carved out at paragraph-10 wherein ithas been advised that such of the appeals which though come under the purview of the circular but are covered by judicialpronouncement should be contested on their merits. Paragraph-13 of the circular further clarifies that it would apply not only tothe Special Leave Petitions/ appeals/ cross objections/references yet to be filed but also apply retrospectively topending litigation. For the sake of convenience we reproduceparagraphs 3, 10 and 13 of the Circular No. 3/2018 for readyreference: “3. Henceforth, appeals/ SLPs shall not be filed incases where the tax effect does not exceed themonetary limits given hereunder: 10. Adverse judgments relating to the followingissues should be contested on meritsnotwithstanding that the tax effect entailed is lessthan the monetary limits specified in para 3 aboveor there is no tax effect: (a) Where the Constitutional validity of theprovisions of an Act or Rule is 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 has Surendra/- U been accepted by the Department, or (d) Where the addition relates to undisclosedforeign assets/ bank accounts. 13. This Circular will apply to SLPs/ appeals/ crossobjections/ references to be filed henceforth in SC/Hcs/ Tribunal and it shall also apply retrospectivelyto pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified taxlimits in para 3 above may be withdrawn/ notpressed.” It is in view of the policy decision so taken by the Govt. of India that the matter has been listed at the instance of Mr. Rishi Raj Sinha, learned Senior Standing Counsel for theIncome Tax Department, on receiving instructions from theDepartment, for withdrawal of the appeal. In view of the stipulations so present in Circular No. 3/2018 and taking note of the prayer made by Mr. Sinha, learnedSenior Standing Counsel for the Income Tax Department,M.A.No. 198/2018 is dismissed as withdrawn. (Jyoti Saran, J) ( Rajeev Ranjan Prasad, J)