DEPUTY COMMISSIONER OF INCOME TAX 1(2) AAYKAR BHAWAN, vs. HIRA INDUSTRIES LTD. 557A,

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TAXC/94/2018HC ChhattisgarhCGHC01018507201830 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 is dismissed in view of the CBDT circular dated 11-07-2018. The Court noted that the tax effect in the present appeal was Rs. 34,37,807/-, which is below the monetary limit of Rs. 50,00,000/- prescribed for appeals before the High Court by the said circular. The circular was also made effective retrospectively. Consequently, the appeal was dismissed on this procedural ground. However, the Court explicitly stated that the question of law raised in the appeal shall remain open for decision in an appropriate case. No specific operative directions for remand or deletion were issued, as the appeal was dismissed on the basis of the circular.

What were the facts?

The Deputy Commissioner of Income Tax, Raipur (the Revenue) filed an Income Tax Appeal before the High Court of Chhattisgarh against Hira Industries Ltd. (the Assessee). The tax effect assessed by the Department in this appeal was approximately Rs. 34,37,807/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, establishing monetary limits for filing departmental appeals. For appeals before the High Court, the monetary limit was set at 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, considering the tax effect involved. The Revenue contended that the CBDT circular dated 11-07-2018, which sets monetary limits for filing appeals, should be applied. The circular specifies a limit of Rs. 50,00,000/- for appeals before the High Court and was made effective retrospectively. The Revenue argued that since the tax effect in this appeal (Rs. 34,37,807/-) falls below this limit, the appeal should be dismissed. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 94 of 2018 • Deputy Commissioner of Income Tax 1(2), Aaykar Bhawan, Central Revenue Building, Civil Lines Raipur, District – Raipur, Chhattisgarh. ---- Petitioner Versus • Hira Industries Ltd., 557A, Urla Industries Area, 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

In the present Income Tax Appeal the tax effect assessed by the Department is at about Rs.34,37,807/-. 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.

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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