ASSISTANT COMMISSIONER OF INCOME TAX-1 (1) vs. SHRI JAVED ALI PRADHAN

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TAXC/59/2018HC ChhattisgarhCGHC01018539201830 April 2019Author: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE SHRI JUSTICE PARTH PRATEEM SAHU1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Income Tax Appeal filed by the Revenue was not maintainable. The Court relied on the CBDT circular dated 11-07-2018, which stipulated that appeals should not be filed where the tax effect does not exceed the monetary limits provided therein. For appeals before the High Court, this limit was Rs. 50,00,000/-. As the tax effect in the present appeal was Rs. 48,32,611/-, which is below the prescribed limit, the appeal was dismissed. The Court further clarified that the question of law raised in the appeal would remain open for decision in an appropriate case. No specific operative directions were issued beyond the dismissal of the appeal.

What were the facts?

The Assistant Commissioner of Income Tax-1(1), Raipur (the Revenue) filed an Income Tax Appeal before the High Court of Chhattisgarh, Bilaspur, challenging an order related to assessment year(s) not specified. The tax effect assessed by the Department was approximately Rs. 48,32,611/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, stipulating monetary limits for filing appeals. For appeals before the High Court, the monetary limit was Rs. 50,00,000/-. This circular was made effective retrospectively. The present appeal's tax effect was below this stipulated monetary limit.

What were the issues?

1. Whether the Income Tax Appeal filed by the Revenue is maintainable before the High Court in light of the CBDT circular dated 11-07-2018, which sets monetary limits for filing appeals, considering the tax effect in the present case is below the prescribed limit. The Revenue contended that the CBDT circular dated 11-07-2018, which sets a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court, should be applied. Since the tax effect in the present appeal (Rs. 48,32,611/-) is below this limit, the appeal is not maintainable. The judgment does not record any specific arguments from the respondent (assessee).

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 59 of 2018 • Assistant Commissioner Of Income Tax-1(1), Central Revenue Building, Civil Lines, Raipur, District- Raipur, Chhattisgarh. ---- Petitioner Versus • Shri Javed Ali Pradhan, Pradhan House, Civil Lines, Raipur, Chhattisgarh ---- Respondent For Petitioner Shri Amit Choudhari, Ms Naushina Ali & Shri Ajay Kumrani, Advocates Hon'ble Shri Prashant Kumar Mishra, Ag.CJ Hon'ble Shri Parth Prateem Sahu, J. Order on Board By Prashant Kumar Mishra, Ag. CJ 01/05/2019

1.

In the present Income Tax Appeal the tax effect assessed by the Department is at about Rs.48,32,611/-. The Central Board Direct Taxes (CBDT) has issued a circular on 11-7-2018 deciding that the Department Appeals may be filed on merits before the Income Tax Appellate Tribunal, High Courts and SLPs/Appeals before the Supreme Court keeping in view the monetary limits stating further that henceforth appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits provided in para 3 of the circular. For appeals before the High Court the monetary limit is Rs.50,00,000/-. The circular dated 11-7-2018 has been made effective retrospective vide para 13 thereof.

2.

In view of the CBDT circular, since in the present appeal the tax effect is below the monetary limit, the same is dismissed. However, the question of law raised in the appeal shall remain open for decision in an appropriate case. (Prashant Kumar Mishra)

(Parth Prateem Sahu) Acting Chief Justice Judge Chandra

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