Principal Commissioner Of Income Tax v. M/S. District E-Governance Society

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR D.B. Income Tax Appeal No.138/2015 Principal Commissioner of Income Tax Vs. M/s. District E-Governance Society Date of order : 12.2.2016 Hon'ble Mr. Justice Ajay RastogiHon'ble Mr. Justice J.K. Ranka Mr. O.P. Pareek Adv. on behalf of Mr. Anuroop Singhi Adv., for appellant. By the Court 1.Instant appeal is directed against order of the Income TaxAppellate Tribunal and indisputably the tax effect as brought to ournotice, is less than Rs.20 lac. 2.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 Boards instruction No.5/2014 dt.10.7.2014 regularizing the monetarylimits for filing the appeals by the Revenue before the Tribunal,High Courts 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 caseswhere the tax effect does not exceed the monetary limits givenhereunder :-where the tax effect does not exceed the monetary limits givenhereunder :- It is clarified that an appeal should not be filed merely becausethe tax effect in a case exceeds the monetary limits prescribedabove. Filing of appeal in such cases is to be decided on meritsof the case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx 8.Adverse judgments relating to the following issuesshould be contested on merits notwithstanding that the taxeffect entailed is less than the monetary limits specified in para3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions ofan Act or Rule are under challenge, or (b)Where Board's order, Notification, Instruction orCircular has been held to be illegal or ultra vires, or (c)Where Revenue Audit objection in the case hasbeen accepted by the Department, or (d)Where the addition relates to undisclosed foreignassets/bank accounts. 9.The monetary limits specified in para 3 above shall notapply to writ matters and direct tax matters other than Incometax. Filing of appeals in other Direct tax matters shall continueto be governed by relevant provisions of statute & rules.Further, filing of appeal in cases of Income Tax, where the taxeffect is not quantifiable or not involved, such as the case ofregistration of trusts or institutions under section 12 A of the ITAct, 1961, shall not be governed by the limits specified in para3 above and decision to file appeal in such cases may be takenon merits of a particular case. 10.This instruction will apply retrospectively to pendingappeals and appeals to be filed henceforth in HighCourts/Tribunals. Pending appeals below the specified taxlimits in para 3 above may be withdrawn/not pressed. Appealsbefore the Supreme Court will be governed by the instructionson this subject, operative at the time when such appeal wasfiled.” 3.The extract of the paragraphs referred to supra, clearly indicates 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. 3.The extract of the paragraphs referred to supra, clearly indicates 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. 4.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 appeal, if any, is left open to be examined in anappropriate proceeding, if arises in future. At the same time weconsider 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 ofthe order if so advised. 5.Accordingly, in the light of the CBDT Circular dated10.12.2015 the appeal stands dismissed as not pressed. (Ajay Rastogi) J. Certificate- All corrections made in the judgment/order have been incorporated in thejudgment/order being e-mailed. S.Kumawat Jr. P.A