DEPUTY COMMISSIONER OF INCOME TAX 1(1) vs. SHILESH A SHAH
What did the High Court hold?
The High Court dismissed the Income Tax Appeal. The reasoning for dismissal is based on the CBDT circular dated July 11, 2018. This circular mandates that appeals shall not be filed if the tax effect does not exceed the stipulated monetary limits. In this case, the tax effect of Rs. 2,31,220/- is below the High Court appeal limit of Rs. 50,00,000/-. Consequently, the appeal was dismissed on this procedural ground. The High Court explicitly stated that the question of law raised in the appeal shall remain open for decision in an appropriate case. No specific relief was granted or denied on the merits of the case.
What were the facts?
This is an Income Tax Appeal filed by the Deputy Commissioner of Income Tax 1(1), Bilaspur (the Revenue) against Shilesh A Shah (the Assessee). The tax effect assessed by the Department in this appeal is approximately Rs. 2,31,220/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, establishing monetary limits for filing appeals by the Department before various authorities, including High Courts. For appeals before the High Court, the monetary limit was set at Rs. 50,00,000/-. This circular was made effective retrospectively.
What were the issues?
1. Whether the present appeal, with a tax effect of Rs. 2,31,220/-, ought to be dismissed in light of the CBDT circular dated July 11, 2018, which sets a monetary limit of Rs. 50,00,000/- for appeals before the High Court. The Revenue's contention, implied by filing the appeal and the subsequent dismissal based on the circular, is that the appeal should be considered on its merits. However, the judgment does not explicitly record the Revenue's arguments. 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. 65 of 2018 • Deputy Commissioner of Income Tax 1(1), Bilaspur (C.G.) ---- Petitioner Versus • Shilesh A Shah, 68/8, Nehru Nagar (West) Bhilai, District – Durg (C.G.) ---- 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.2,31,220/-. 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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