The Commissioner Of Income Tax, Ajmer v. M/S. Suraj Marbles Pvt. Ltd., Madanganj-Kishangarh.with

1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR.JUDGMENT (1) D.B. INCOME TAX APPEAL NO. 293/2008 The Commissioner of Income Tax, Ajmer. Appellant Versus M/s. Suraj Marbles Pvt. Ltd., Madanganj-Kishangarh.WITH Respondent. (2) D.B. INCOME TAX APPEAL NO. 435/2008 The Commissioner of Incoe Tax, Ajmer. Versus Appellant M/s. Suraj Marbles Pvt. Ltd., Madanganj-Kishangarh. Respondent. DATE OF JUDGMENT : 19.11.2016 HON'BLE MR. JUSTICE MOHAMMAD RAFIQHON'BLE MR. JUSTICE MAHENDRA MAHESHWARI Mr. Mukesh Meena on behalf of Ms. Parinitoo Jain, for theappellant. Mr. A.K. Sharma, Senior Counsel assisted by Mr. RachitSharma, for the respondent. BY THE COURT: These two appeals are directed against order of the Income Tax Appellate Tribunal and indisputably, the tax effect in these appeals, as brought to our notice, is less than 2D.B. INCOME TAX APPAEL NO. 293/2008 & 435/2008 Rs.20 lac. The Central Board of Direct Taxes, in exercise of its power u/sec. 268A (1) of the Income-tax Act 1961 insupersession of the Boards instruction No.5/2014dt.10.7.2014, issued Circular No. 21/2015 dated 10.12.2015providing the monetary limits for filing appeals by theRevenue before the Tribunal, High Courts and Apex Court with an object to reduce litigation. Relevant para nos.3, 8, 9 and 10 reads as under:- “3.Henceforth, appeals/SLPs shall not be filedin cases where the tax effect does not exceed themonetary limits given hereunder :- S.Appeals in Income-taxMonetary Limit (inNo.mattersRs.)1Before Appellate Tribunal10,00,000/-2Before High Court20,00,000/-3Before Supreme Court25,00,000/- It is clarified that an appeal should not be filedmerely because the tax effect in a case exceedsthe monetary limits prescribed above. Filing ofappeal in such cases is to be decided on merits ofthe case. 4.xxxxxxxxx5.xxxxxxxxx6.xxxxxxxxx7.xxxxxxxxx 8.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 the provisions of an Act or Rule are under challenge,or (b)Where Board's order, Notification,Instruction or Circular has been held to be illegalor ultra vires, or (c)Where Revenue Audit objection in thecase has been accepted by the Department, or (d)Where the addition relates toundisclosed foreign assets/bank accounts. 9.The monetary limits specified in para 3above shall not apply to writ matters and directtax matters other than Income tax. Filing ofappeals in other Direct tax matters shall continueto be governed by relevant provisions of statute &rules. Further, filing of appeal in cases of IncomeTax, where the tax effect is not quantifiable ornot involved, such as the case of registration oftrusts or institutions under section 12 A of the ITAct, 1961, shall not be governed by the limitsspecified in para 3 above and decision to fileappeal in such cases may be taken on merits of aparticular case. 10.This instruction will apply retrospectively topending appeals and appeals to be filedhenceforth in High Courts/Tribunals. Pendingappeals below the specified tax limits in para 3above may be withdrawn/not pressed. Appealsbefore the Supreme Court will be governed by theinstructions on this subject, operative at the timewhen such appeal was filed.” The extract of the paragraphs referred to supra, clearly indicates that limits specified in para 3 may not applyto certain exceptions specified in para 8. Para nos.9 and 10of the Circular if read conjointly, clearly envisage that thepresent instructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in High Courts/Tribunals, subject to certain exceptions, where thetax effect even if is less than Rs.20 lac, can be preferred inHigh Courts. The extract of the paragraphs referred to supra, clearly indicates that limits specified in para 3 may not applyto certain exceptions specified in para 8. Para nos.9 and 10of the Circular if read conjointly, clearly envisage that thepresent instructions will apply retrospectively to all thepending appeals and appeals to be filed henceforth in High Courts/Tribunals, subject to certain exceptions, where thetax effect even if is less than Rs.20 lac, can be preferred inHigh Courts. Taking note of the CBDT Circular dt. 10/12/2015and considering that in these appeals, tax effect being lessthan what has been prescribed for filing appeal before theHigh Courts, the Revenue has chosen not to press them. It is,however, made clear that the substantial questions of lawraised in the instant appeals, if any, are left open to beexamined in an appropriate proceeding, if arises in future. Atthe same time, we deem it appropriate to observe that if anyof these appeals falls in any of the exceptions as referred toin the Circular dt. 10/12/2015, the Revenue will be at libertyto move an application for revival thereof if so advised. Accordingly, in the light of the CBDT Circulardated 10.12.2015, the appeals stand dismissed as not pressed. Office is directed to place a copy of this judgment on record of connected file. (MAHENDRA MAHESHWARI),J. (MOHAMMAD RAFIQ),J. Manoj.