The Commissioner Of Income Tax- Alwar v. M/S. Shree Hari Industries, (Hom), Bharatpuar, Maal Godown Roadbharatpur

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH ATJAIPUR D.B. Income Tax Appeal No. 867 / 2008 The Commissioner of Income Tax- Alwar. ----Appellant Versus M/s. Shree Hari Industries, (HOM), Bharatpuar, Maal Godown RoadBharatpur. ----Respondent _____________________________________________________ For Appellant(s) :Mrs. Parinitoo Jain. _____________________________________________________HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE VINIT KUMAR MATHUR Judgment Per Hon’ble Jhaveri J.18/01/2017 1.Instant appeal is directed against order of the Income TaxAppellate Tribunal and indisputably the tax effect as brought toour notice, is less than Rs.20 lac. 2.A Circular No.21/2015 has been issued by the Central Board of DirectTaxes dated 10.12.2015 in exercise of its power u/sec. 268A (1) of theIncome-tax Act 1961 in supersession of the Boards instruction No.5/2014dt.10.7.2014 regularising the monetary limits for filing the appeals by theRevenue before the Tribunal, High Courts and Apex Court with an object forreducing 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 :- S.Appeals in Income-tax mattersMonetary Limit (inNo.Rs.)1Before Appellate Tribunal10,00,000/-2Before High Court20,00,000/-3Before Supreme Court25,00,000/- 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 issues shouldbe contested on merits notwithstanding that the tax effectentailed is less than the monetary limits specified in para 3above 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 para 3above 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 instructions 3.The extract of the paragraphs referred to supra, clearly indicates thatthe limits specified in para 3 may not apply to certain exceptions specified inpara 8, at the same time para nos.9 and 10 of the Circular if read conjointly,clearly envisages that the present instructions will apply retrospectively to allthe pending appeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect even if is lessthan Rs.20 lac, can be preferred in High Courts. 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 instructions 3.The extract of the paragraphs referred to supra, clearly indicates thatthe limits specified in para 3 may not apply to certain exceptions specified inpara 8, at the same time para nos.9 and 10 of the Circular if read conjointly,clearly envisages that the present instructions will apply retrospectively to allthe pending appeals and appeals to be filed henceforth in HighCourts/Tribunals, subject to exceptions where the tax effect even if is lessthan Rs.20 lac, can be preferred in High Courts. 4.Taking note of the CBDT Circular dt. 10/12/2015 and the tax effectwhich indisputably in the instant case is less than Rs.20 lac, much less thanwhat has been prescribed for filing appeal before the High Courts, deservesto be dismissed as not pressed. However, it is made clear that thesubstantial questions of law raised in the instant appeals, if any, are leftopen to be examined in an appropriate proceeding, if arises in future. At thesame time we consider it appropriate to observe that if the appeal falls inany of the exceptions as referred to in the Circular dt. 10/12/2015, theRevenue will be at liberty to move an application for recalling of the order ifso advised. 5.Accordingly, in the light of the CBDT Circular dated 10.12.2015 theappeal stands dismissed as not pressed. (VINIT KUMAR MATHUR)J. (K.S. JHAVERI)J. Asheesh Kr. Yadav/122