C I T JAIPUR vs. M/S SUPREME TRADELINK PVT LTD

ITA/561/2011HC RajasthanRJHC02063990201104 September 20173 pages
AI SummaryDismissed

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Jaipur-II (the Revenue) against an order of the Income Tax Appellate Tribunal. The respondent is M/S Supreme Tradelink Pvt Ltd. The tax effect in the present case was stated to be less than Rs. 20 lac. The High Court noted that a CBDT Circular No. 21/2015 dated 10.12.2015 had been issued, superseding earlier instructions, to regularize monetary limits for filing appeals by the Revenue before various courts, including the High Court, with the objective of reducing litigation. The circular stipulated a monetary limit of Rs. 20,00,000/- for filing appeals before the High Court.

What did the High Court hold?

The High Court held that the appeal deserved to be dismissed as not pressed, taking into account the CBDT Circular dated 10.12.2015 and the fact that the tax effect in the instant case was less than Rs. 20 lac, which is the prescribed limit for filing appeals before the High Court. The Court clarified that the substantial questions of law raised in the appeal, if any, are left open to be examined in an appropriate proceeding in the future. The Revenue was also granted liberty to move an application for recalling the order if the appeal fell under any of the exceptions mentioned in the Circular dated 10.12.2015. The operative direction was to dismiss the appeal as not pressed.

What were the issues?

1. Whether the appeal filed by the Revenue before the High Court is maintainable given that the tax effect is less than the prescribed monetary limit of Rs. 20,00,000/- as per CBDT Circular No. 21/2015. Assessee's Contentions: The assessee did not explicitly argue any points as the judgment focuses on the applicability of the CBDT circular. However, by implication, the assessee would have relied on the circular to argue for dismissal. Revenue's Contentions: The Revenue's contentions are not explicitly recorded. However, the appeal was filed, implying a belief in its merit or an intention to pursue it despite the tax effect.

Which sections of the Income-tax Act were involved?

Section 268A(1)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 561 / 2011 Commissioner of Income Tax, Jaipur-II, Jaipur ----Appellant Versus M/S Supreme Tradelink Pvt Ltd. 7A & 8A, Gaurav Tower, Malviya Nagar, Jaipur. ----Respondent _____________________________________________________ For Appellant(s) : Mr. R.B. Mathur For Respondent(s) : Mr. Anant Kasliwal _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE INDERJEET SINGH

Order 04/09/2017 BY THE COURT:

1.

Instant appeal is directed against order of the Income Tax Appellate Tribunal and indisputably the tax effect as brought to our notice, is less than Rs.20 lac.

2.

A Circular No.21/2015 has been issued by the Central Board of Direct Taxes dated 10.12.2015 in exercise of its power u/sec. 268A (1) of the Income-tax Act 1961 in supersession of the Boards instruction No.5/2014 dt.10.7.2014 regularising the monetary limits for filing the appeals by the Revenue before the Tribunal, High Courts and Apex Court with an object for reducing litigation. Relevant para nos.3, 8, 9 and 10 reads ad infra :- “3. Henceforth, appeals/SLPs shall not be filed in cases

The order continues below.

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