INCOME TAX OFFICER, WARD- 1 (1), RAIPUR (C.G.) vs. CMDC ICPL COAL LTD
What did the High Court hold?
The High Court held that in view of the CBDT circular dated 11-7-2018, which sets a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court, and considering that the tax effect in the present appeal is Rs. 39,21,446/-, which is below the prescribed limit, the appeal is dismissed. The Court further clarified that the question of law raised in the appeal shall remain open for decision in an appropriate case. No specific finding was given on the merits of the legal question itself, as the dismissal was based on the procedural aspect of the CBDT circular.
What were the facts?
This is an Income Tax Appeal filed by the Income Tax Officer, Ward – 1(1), Raipur (Petitioner/Revenue) against CMDC ICPL Coal Ltd. (Respondent/Assessee). The tax effect assessed by the Department in this appeal is approximately Rs. 39,21,446/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, setting monetary limits for filing departmental 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 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, given that the tax effect does not exceed the prescribed monetary limit for High Court appeals. The Revenue contended that the CBDT circular dated 11-7-2018, which sets monetary limits for filing departmental appeals, is applicable. The circular states that appeals shall not be filed where the tax effect does not exceed the monetary limits, with Rs. 50,00,000/- being the limit for High Court appeals. The circular was made effective retrospectively. The Revenue implicitly acknowledged that the tax effect in this case is below the stipulated limit.
AI-generated summary — verify with the full judgment below
NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 18 of 2019 • Income Tax Officer, Ward – 1(1), Raipur (C.G.) ---- Petitioner Versus • CMDC ICPL Coal Ltd., Rajbandh Maidan, G.E. Road, 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
In the present Income Tax Appeal the tax effect assessed by the Department is at about Rs.39,21,446/-. 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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