PR. COMMISSIONER OF INCOME TAX vs. M/S RAMBHAJOS

Facts

These are two connected Income Tax Appeals filed by the Principal Commissioner of Income Tax, Central, Jaipur, against M/s Rambhajos and Dinesh Kumar Agarwal. The appeals were filed before the High Court of Judicature for Rajasthan, Jaipur Bench. The appellant's counsel placed before the Court instructions dated August 8, 2019, issued in furtherance of CBDT Circular No. 3 of 2018. These instructions specified enhanced monetary limits for filing income tax appeals. The monetary limit for appeals before the High Court was set at Rs. 1,00,00,000. The appellant's counsel submitted that the monetary limit in the present appeals was less than the prescribed amount.

Held

The High Court dismissed the present appeals. The decision was based on the instructions dated August 8, 2019, issued by the Central Board of Direct Taxes (CBDT), which enhanced the monetary limits for filing income tax appeals. The instructions stipulated that appeals before the High Court should have a monetary limit of Rs. 1,00,00,000. Since the learned counsel for the appellant submitted that the monetary limit in these appeals was less than the prescribed amount, the Court found the appeals to be not maintainable under the revised guidelines. The ratio decidendi is that appeals filed by the Department that do not meet the enhanced monetary thresholds specified by the CBDT are liable to be dismissed. The operative direction was the dismissal of the appeals.

Key Issues

1. Whether the present appeals are maintainable before the High Court given the enhanced monetary limits for filing appeals by the Department? The appellant contended that the monetary limit in the present appeals is less than the prescribed amount as per the instructions dated August 8, 2019, issued in furtherance of CBDT Circular No. 3 of 2018. The revenue did not present any arguments as the matter was decided based on the appellant's submission regarding the monetary limits.