INCOME TAX OFFICER WARD-1 (3) vs. SHRI KEDAR AGARWAL

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TAXC/71/2018HC ChhattisgarhCGHC01018565201830 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, with a tax effect of Rs. 17,81,134/-, falls below the monetary limit of Rs. 50,00,000/- prescribed by the CBDT circular dated 11-07-2018 for filing appeals before the High Court. The Court noted that the circular was made effective retrospectively. Consequently, the appeal was dismissed on the grounds of not meeting the monetary threshold. However, the Court explicitly stated that the question of law raised in the appeal would remain open for decision in an appropriate future case. No specific relief was granted or deleted, and no part of the appeal was remanded.

What were the facts?

The Income Tax Officer, Ward 1(3), Raipur (the Revenue) filed an appeal before the High Court of Chhattisgarh, Bilaspur, challenging an order related to Shri Kedar Agarwal (the assessee). The tax effect assessed by the Department in this appeal was approximately Rs. 17,81,134/-. 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, this limit was Rs. 50,00,000/-. The circular was made effective retrospectively. The present appeal had a tax effect 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 11-07-2018, which sets monetary limits for filing departmental appeals, specifically Rs. 50,00,000/- for High Court appeals, and whether this circular applies retrospectively. Contentions: Assessee: The assessee did not present any arguments as recorded in the judgment. Revenue: The Revenue filed the appeal, implicitly arguing for its maintainability, but did not present specific arguments against the application of the CBDT circular or for an exception.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 71 of 2018 • Income Tax Officer, Ward 1(3), Raipur (C.G.) ---- Petitioner Versus • Shri Kedar Agarwal, Paraswani, Hirmi, Raipur (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

1.

In the present Income Tax Appeal the tax effect assessed by the Department is at about Rs.17,81,134/-. 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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