THE DEPUTY COMMISSIONER OF INCOME TAX 1 vs. SHRI RAJESH KUMAR SARAOGI

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TAXC/136/2018HC ChhattisgarhCGHC01026556201830 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 Income Tax Appeal, with a tax effect of Rs. 19,00,468/-, falls below the monetary limit of Rs. 50,00,000/- prescribed by the CBDT circular dated 11-7-2018 for filing appeals before the High Court. The circular, which was made effective retrospectively, mandates that appeals shall not be filed where the tax effect does not exceed these limits. Therefore, in view of the CBDT circular, the appeal was dismissed. However, the court clarified that the question of law raised in the appeal would remain open for decision in an appropriate case. No specific operative directions like remand or deletion were issued, other than the dismissal of the appeal.

What were the facts?

This Income Tax Appeal was filed by the Deputy Commissioner of Income Tax 1(1), Raipur (the Revenue) against Shri Rajesh Kumar Saraogi (the assessee). The tax effect assessed by the Department in this appeal was approximately Rs. 19,00,468/-. 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 set at Rs. 50,00,000/-. The circular was made effective retrospectively. Consequently, the present appeal, with a tax effect below the stipulated monetary limit, was considered for dismissal.

What were the issues?

1. Whether the present appeal, with a tax effect of Rs. 19,00,468/-, is maintainable before the High Court in light of the CBDT circular dated 11-7-2018 setting a monetary limit of Rs. 50,00,000/- for High Court appeals, which was made effective retrospectively. Assessee's contentions: The judgment does not record any specific contentions made by the assessee. The appeal was dismissed based on the CBDT circular. Revenue's contentions: The Revenue filed the appeal. The judgment does not explicitly detail the Revenue's arguments for proceeding with the appeal, but it implicitly relies on the CBDT circular for dismissal.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 136 of 2018 • The Deputy Commissioner of Income Tax 1(1), Raipur, Chhattisgarh. ---- Petitioner Versus • Shri Rajesh Kumar Saraogi, C/o M/s. R.K. (Steels) Sales Subhash Road, 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.19,00,468/-. 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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