C I T vs. GIRISH KUMAR PAREEK

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ITA/243/2009HC RajasthanRJHC02009137200908 February 20174 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeals, having a tax effect less than Rs. 20 lac, are to be dismissed as not pressed, in light of CBDT Circular No. 21/2015 dated 10.12.2015. The Court noted that the Circular was issued to reduce litigation and sets monetary limits for filing appeals. The limit for appeals before the High Court is Rs. 20,00,000/-. The Court clarified that while substantial questions of law are left open for future proceedings, if the appeals fall under any exceptions specified in the Circular (e.g., constitutional validity, Board's order being held illegal, undisclosed foreign assets), the Revenue is at liberty to move an application for recalling the order. The ratio decidendi is that pending appeals below the specified tax limits should be withdrawn or not pressed as per the Circular, unless specific exceptions apply.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (CIT) against orders of the Income Tax Appellate Tribunal. The tax effect in these appeals was stated to be less than Rs. 20 lac. The appeals were filed before the High Court. The judgment also notes that the appeals were connected with other appeals involving different respondents and assessment years, though these details are not elaborated upon. The procedural history primarily revolves around the applicability of a CBDT Circular to these pending appeals.

What were the issues?

1. Whether the appeals, with a tax effect less than Rs. 20 lac, are maintainable before the High Court in light of CBDT Circular No. 21/2015 dated 10.12.2015? The Revenue contended that the CBDT Circular No. 21/2015, which sets monetary limits for filing appeals, should be applied. The Circular specifies a monetary limit of Rs. 20,00,000/- for appeals before the High Court. The Revenue argued that since the tax effect in the present appeals is less than this limit, the appeals should be dismissed as not pressed, unless they fall under the exceptions mentioned in the Circular. The Assessee's contentions are not explicitly recorded in the judgment. However, the judgment's outcome suggests that the Assessee would have implicitly agreed with the application of the Circular or that the Revenue's argument prevailed.

Which sections of the Income-tax Act were involved?

Section 268A

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. 243 / 2009 C I T ----Appellant Versus Girish Kumar Pareek ----Respondent Connected With D.B.INCOME TAX APPEAL No. 285 / 2009 C I T ----Appellant Versus Girish Kumar Pareek ----Respondent D.B.INCOME TAX APPEAL No. 306 / 2009 C I T ----Appellant Versus Goverdhan Prasad Singhal ----Respondent D.B.INCOME TAX APPEAL No. 524 / 2009 C I T ----Appellant Versus M/S Emkey Exports ----Respondent D.B.INCOME TAX APPEAL No. 538 / 2009 C I T ----Appellant Versus (2 of 4) [ITA-243/2009] M/S Emkay Exports ----Respondent _____________________________________________________ For Appellant(s) : Mr. K.D. Mathur for Mr. R.B. Mathur For Respondent(s) : Mr. Gunjan Pathak, Mr. Mahendra Garegiya _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE VINIT KUMAR MATHUR

Judgment 08/02/2017

Instant appeals are 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. 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 where the tax effect does not exceed the monetary limits given hereunder :- S. No. Appeals in Income-tax matters Monetary Limit (in Rs.) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/-

(3 of 4) [ITA-243/2009]

It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. 4. xxx xxx xxx 5. xxx xxx xxx 6. xxx xxx xxx 7. xxx xxx xxx

8.

Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect: (a) Where the Constitutional validity of the provisions of an Act or Rule are 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 has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/bank accounts.

9.

The monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute & rules. Further, filing of appeal in cases of Income Tax, where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12 A of the IT Act, 1961, shall not be governed by the limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of a particular case.

10.

This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.” The extract of the paragraphs referred to supra, clearly indicates that the limits specified in para 3 may not apply to certain exceptions specified in para 8, at the same time para nos.9 and 10 of the Circular if read conjointly, clearly envisages that the present instructions will apply retrospectively to all the pending appeals and appeals to be filed henceforth in High

(4 of 4) [ITA-243/2009]

Courts/Tribunals, subject to exceptions where the tax effect even if is less than Rs.20 lac, can be preferred in High Courts. Taking note of the CBDT Circular dt. 10/12/2015 and the tax effect which indisputably in the instant case is less than Rs.20 lac, much less than what has been prescribed for filing appeals before the High Courts, deserves to be dismissed as not pressed. However, it is made clear that the substantial questions of law raised in the instant appeals, if any, are left open to be examined in an appropriate proceeding, if arises in future. At the same time we consider it appropriate to observe that if the appeals fall in any of the exceptions as referred to in the Circular dt. 10/12/2015, the Revenue will be at liberty to move an application for recalling of the order if so advised. Accordingly, in the light of the CBDT Circular dated 10.12.2015 the appeals are dismissed as not pressed. A copy of the order be placed in each file. (VINIT KUMAR MATHUR)J. (K.S. JHAVERI)J. A.Sharma/64-68

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