Ma/338/2017 Of Dy Commissioner Of Income Tax v. M/S K. K. Awass Pvt. Ltd

513-12-2018 IN THE HIGH COURT OF JUDICATURE AT PATNAMiscellaneous Appeal No.338 of 2017 ====================================================== Dy Commissioner of Income Tax, Circle-2, Muzaffarpur. ... ... Appellant VersusM/s K. K. Awass Pvt. Ltd. H.No. 27, New Kali Mati Road, Sakachi,Jamshedpur, PIN No. 831001 (Pan No. AABCK 9788M). ... ... Respondent======================================================Appearance :For the Appellant/s: Mr. Rishi Raj Sinha, Sr.S.C. Ms. Shilpi Keshri, Sr.S.C., Income-taxFor the Respondent/s: Mr. ====================================================== CORAM: HONOURABLE MR. JUSTICE JYOTI SARAN and HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASADORAL ORDERORAL ORDER (Per: HONOURABLE MR. JUSTICE JYOTI SARAN) This appeal is directed against the order dated 30.11.2016 passed in I.T.A.No. 65/ Pat/ 2013 by the Income TaxTribunal, Patna Bench, Patna whereby the order passed by theCommissioner of Income Tax (Appeals) has been uphelddismissing 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 becontested 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,Instruction or Circular has been held to be illegalor ultra vires, or Surendra/- U (c) Where Revenue Audit objection in the casehas been accepted by the Department, or (d) Where the addition relates to undisclosedforeign assets/ bank accounts. 13. This Circular will apply to SLPs/ appeals/cross objections/ references to be filed henceforthin SC/ Hcs/ Tribunal and it shall also applyretrospectively to pending SLPs/ appeals/ crossobjections/ references. Pending appeals below thespecified tax limits in para 3 above may bewithdrawn/ not pressed.” It is in view of the policy decision so taken by the Govt. of India that the matter has been listed at the instance ofMr. 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. 338/2017 is dismissed as withdrawn. (Jyoti Saran, J) ( Rajeev Ranjan Prasad, J)