THE DEPUTY COMMISSIONER OF INCOME TAX 1(1), vs. RAKESH SARAOGI AND SONS (HUF)

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TAXC/138/2018HC ChhattisgarhCGHC01026558201830 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 present appeal is dismissed in view of the CBDT circular dated 11-7-2018. The circular specifies that appeals shall not be filed where the tax effect does not exceed the monetary limits, with the limit for High Court appeals being Rs. 50,00,000/-. As the tax effect in this case (Rs. 12,45,600/-) is below this limit, the appeal is not maintainable. The Court further clarified that the question of law raised in the appeal shall remain open for decision in an appropriate case. The operative direction is the dismissal of the appeal.

What were the facts?

This is an Income Tax Appeal filed by the Deputy Commissioner of Income Tax, Raipur (the Revenue) against Rakesh Saraogi & Sons (HUF) (the Assessee). The tax effect assessed by the Department in this appeal is approximately Rs. 12,45,600/-. 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 is Rs. 50,00,000/-. This circular was made effective retrospectively. The present appeal falls below this stipulated monetary limit.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court in light of the CBDT circular dated 11-7-2018, which sets a monetary limit of Rs. 50,00,000/- for appeals before the High Court, considering the tax effect in the present case is Rs. 12,45,600/-. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal was decided based on the Revenue's submission regarding the CBDT circular. Revenue's Contention: The Revenue relied on the CBDT circular dated 11-7-2018, which mandates that appeals shall not be filed where the tax effect does not exceed the provided monetary limits. They submitted that since the tax effect in this appeal is below the limit for High Court appeals, the appeal should be dismissed.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 138 of 2018 • The Deputy Commissioner of Income Tax 1(1), Raipur, Chhattisgarh. ---- Petitioner Versus • Rakesh Saraogi & Sons (HUF) C/o Subham Kroti, Main Road, Shankar Nagar, 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.12,45,600/-. 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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