The Commissioner Of Income Tax v. Vinod S. Gosalia And Anr

IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 41 OF 2002 THE COMMISSIONER OF INCOME TAX Versus VINOD S. GOSALIA AND ANR ... Appellant... Respondent Mr. S. R. Rivonkar, Advocate for the appellant. Mr. A. N. S. Nadkarni, Senior Advocate with Mr. H. D. Naik, Advocatefor respondent No.1. P.C. -Coram:P. B. MAJMUDAR &N. A. BRITTO, JJ.-Date:6th January, 2009 During the course of hearing of this appeal, the learned Counselfor the respondent submitted that the total tax effect in the present case isRs. 3,43,200/-. The said aspect as such is not in dispute, as the taxdemand is also of the same amount as per page 39of the paper book. Thelearned Counsel for the respondent submitted that in view of the decisionof the Division Bench of this Court in the case of Commissioner ofIncome-tax vs. Pithwa Engg. Works, reported in 2005(5) Bom.C.R. 41,and pursuant to the Circular of the Department dated 27th March, 2000 tothe effect that an appeal should not be preferred where the tax effect isless than a particular amount, the instant appeal is not required to beentertained. As per the Circular, a policy decision has been taken not tofile an appeal where the tax effect is less than Rs.4.00 lacs. 2. The learned Counsel for the respondent has placed on record acopy of the order passed by the Division Bench of this Court dated21.11.2008 in Tax Appeal No.54/2002, wherein the Department has notpressed the appeal in view of the Circular of the Central Board of Direct Taxes (CBDT). The copy of the said order is kept on record. The learnedCounsel for the appellant is not in a position to distinguish this case from the case i.e. Tax Appeal No. 54/2002 which was disposed of by thisCourt as not pressed. 3. Considering this aspect of the case and considering the decisionof the Division Bench of this Court dated 21.11.2008, and in view of theCircular of the CBDT to the effect not to file appeals where the tax effectis less than 4.00 lacs, the appeal is not required to be entertained. 4. We, accordingly, dispose of this appeal in view of the policydecision taken by the Department, not to file appeals where the taxamount is less than Rs.4.00 lacs. The appeal, accordingly, standsdisposed of. No order as to costs. P. B. MAJMUDAR, J. ssm. N. A. BRITTO, J.