The Principal Commissioner Of Income Tax v. Shri Mohanlal Chugh Income Tax Appeal

--- 1 --- HIGH COURT OF MADHYA PRADESH : BENCH AT INDORE D.B.: HON'BLE MR. S. C. SHARMA ANDHON'BLE MR. SHAILENDRA SHUKLA, JJ INCOME TAX APPEAL No. 10 / 2016 THE PRINCIPAL COMMISSIONER OF INCOME TAXVs.SHRI MOHANLAL CHUGHINCOME TAX APPEAL No. 11 / 2016THE PRINCIPAL COMMISSIONER OF INCOME TAX Vs.SHRI NITESH CHUGHINCOME TAX APPEAL No. 13 / 2016THE PRINCIPAL COMMISSIONER OF INCOME TAXVs. SMT. RANIDEVI CHUGH * * * * *O R D E R(31/10/2019) PER : S. C. SHARMA, J:- The present appeal has been filed u/S. 260A of the Income TaxAct 1961 by the Commissioner of Income Tax Indore against theorder passed by the Income Tax Appellate Tribunal. The CentralBoard of Direct Taxes has issued a circular No. 3/2018 fixing themonetary limit for filing of appeals before the High Courts andbefore the Supreme Court. However, certain appeals are to bedecided on merits. Paragraph 10 of the Circular dated 11/07/2018reads as under: Para 10 of the Circular dated 11/7/2018 reads as under : 10.Adverse judgments relating to the followingissues should be contested on merits notwithstandingthat the tax effect entailed is less than the monetarylimits specified in para 3 above or there is no tax effect :(a)Where the Constitutional validity of theprovisions of an Act or Rule is under challenge, or(b)Where Board's order, Notification, Instruction or Circular 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. That the circular no. 3/2018 was further revised by the circular dated 20/08/2018 and paragraph 10 was amended as under : 3.Para 10 of the said Circular provides that adversejudgments relating to the issues enumerated in the saidpara should be contested on merits notwithstanding thatthe tax effect entailed is less than the monetary limitsspecified in para 3 thereof or there is no tax effect. Para10 of the Circular No.3 of 2018 dated 11/7/2018 ishereby amended as under:10.Adverse judgments relating to the followingissues should be contested on merits notwithstandingthat the tax effect entailed is less than the monetarylimits specified in para 3 above or there is no tax effect :(a)Where the Constitutional validity of theprovisions of an Act or Rule is 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 foreignincome / undisclosed foreign assets (including financialassets) / undisclosed foreign bank account.(e)Where addition is based on information receivedfrom external sources in the nature of law enforcementagencies such as CBI / ED / DRI / SFIO / DirectorateGeneral of GST Intelligence (DGGI).(f)Cases where prosecution has been filed by theDepartment and is pending in the Court. Thereafter another circular was issued on 08/08/2019 and themonetary limit was enhanced to Rs. 1.00 crore in respect of HighCourt. A further clarificatory circular was issued on 6[th] September,2019 and the Department has been permitted, irrespective ofvaluation, to file an appeal on merits in cases involved in organizedtax evasion activity (Circular dated 6[th] September, 2019). The present appeal is covered under the circular issued by theDepartment and the learned counsel for the appellant prays forwithdrawal of the present appeal. The prayer is allowed. The appealis dismissed as withdrawn. However, the question of law is left open. (S. C. SHARMA)(SHAILENDRA SHUKLA)J U D G EJ U D G E KR Digitally signed by Kamal Rathor Date: 2019.11.04 14:39:00 +05'30'