The Commissioner Of Income Tax, Chennai v. Sri Ashok Kumar Sethi

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE NOOTY.RAMAMOHANA RAOANDTHE HONOURABLE MR.JUSTICE M.V.MURALIDARAN Tax Case (Appeal) Nos.696 & 697 of 2010 The Commissioner of Income Tax, Chennai...Appellant in both Appeals/RespondentVs. Sri Ashok Kumar Sethi ..Respondent in both Appeals/Appellant Tax Case Appeals filed under Section 260-A of the Income TaxAct against the order dated 29.05.2006 made in I.T.A.(SS)No.68/Mds/2003 and I.T.A.(SS) No.95/Mds/2003, against the Orderof the Commissioner of Income-Tax (Appeals-II) Coimbatore Dated26.02.2003 in ITA.NO.189-C/2002-2003. and against the Order of the Deputy Commissioner of Income-Tax Central Circle III (4), Chennai-34, Dated 16/07/2002 and inP.A.NO./G.I.No.AA11PSO731M on the file of the Income TaxAppellate Tribunal, 'A' Bench, Chennai. For Appellant : Mr.T.R.Senthilkumar, Standing Counsel for Income Tax Department. For Respondent : Mr.S.Sridhar (Judgment of the Court was delivered by Nooty.Ramamohana Rao,J) These Tax Case Appeals being old matters, have been taken upfor final disposal by us today. These appeals are preferred bythe Commissioner of Income Tax, Chennai, aggrieved by the order,dated 29.05.2006, passed by the Income Tax Appellate Tribunal,'A' Bench, Chennai, in I.T.A.(SS) No.68/Mds/2003 and I.T.A.(SS)No.95/Mds/2003. 2. Learned counsel for the respondent-assessee, in the formof a memorandum, has raised a preliminary objection with regardto the sustainability of the Department's Tax Case Appeal, based https://hcservices.ecourts.gov.in/hcservices/ upon the instructions contained in Circular No.21 of 2015, dated10.12.2015 issued by the Central Board of Direct Taxes, NewDelhi. 3. The said Circular No.21 of 2015 deals with the subjectmatter of revision of mandatory limits for filing of the appealsby the Department before the Income Tax Appellate Tribunal, HighCourts and Special Leave Petitions before the Supreme Court.Various measures are devised from time to time for reducing theunproductive litigations. In paragraphs 3 and 10 of the saidCircular, the following instructions have been issued: It is clarified that an appeal should not be filedmerely because the tax effect in a case exceeds themonetary limits prescribed above. Filing of appeal insuch cases is to be decided on merits of the case." "10. The instruction will apply retrospectivelyto pending appeals and appeals to be filed henceforthin High Courts/Tribunals. Pending appeals below thespecified tax limits in para 3 above may bewithdrawn/not pressed. Appeals before the SupremeCourt will be governed by the instructions on thissubject, operative at the time when such appeal wasfiled." 4. From the above instructions contained in the Circular,learned counsel for the respondent/assessee submitted thatpending appeals before the High Court, below the specified taxlimits as stated in paragraph 3 of the Circular, are liable tobe withdrawn/not pressed. The limits prescribed in paragraph 3insofar as the appeals before the High Court are concerned, theyare set out for Rs.20 lakhs. According to the learned counselfor the respondent/assessee, the total tax effect in the instantcase is to the value of Rs.12,51,950/- and hence, it being lessthan the limit of tax effect specified in paragraph 3 of thesaid Circular at Rs.20 lakhs, these appeals deserve to bedismissed either as withdrawn or not pressed. https://hcservices.ecourts.gov.in/hcservices/ 5. At this stage, learned Standing Counsel appearing for theappellant/Revenue (Department) urged that having noticed theinstructions contained in the said Circular, he has alreadytaken up the matter with the Department, but however, he has notreceived any instructions in writing from the Department andhence, he cannot withdraw these appeals. https://hcservices.ecourts.gov.in/hcservices/ 5. At this stage, learned Standing Counsel appearing for theappellant/Revenue (Department) urged that having noticed theinstructions contained in the said Circular, he has alreadytaken up the matter with the Department, but however, he has notreceived any instructions in writing from the Department andhence, he cannot withdraw these appeals. 6. It is appropriate to notice that the Central Board ofDirect Taxes has issued the instructions contained in the saidCircular in exercise of its power available to it under Section268-A(i) of the Income Tax Act,1961 and hence, the Circular hasstatutorily enforceable character. In that view of the matter,we treat these appeals as dismissed as withdrawn, in view of theinstructions received by the learned Standing Counsel to thateffect, and dismiss them as such. However, it goes withoutsaying that the questions of law raised in these appeals forconsideration of this Court are kept open to be decided onmerits in an appropriate case. No costs. TO 1. THE COMMISSIONER OF INCOME-TAX APPEALS-II, COIMBATORE. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-III, (4), CHENNAI-34. 3.THE ASST. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, 'Á' BENCH,CHENNAI, IIIrd FLOOR, RAJAJI BHAVAN, BESANT NAGR, CHENNI-90. + 1 CC TO Mr.T.R.SENTHIL KUMAR, ADVOCATE SR 27732.