ASSISTANT COMMISSIONER OF INCOME TAX-1 (1), vs. SHRI JAVED ALI PRADHAN

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TAXC/103/2018HC ChhattisgarhCGHC01018536201830 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 is dismissed in view of the CBDT circular dated 11-7-2018, as the tax effect of Rs. 6,65,333/- was below the prescribed monetary limit of Rs. 50,00,000/- for appeals before the High Court. The Court noted that the circular was made effective retrospectively. While dismissing the appeal on the grounds of the monetary limit, the 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 deleted, and the appeal was disposed of based on the procedural aspect of the CBDT circular.

What were the facts?

The Income Tax Appeal was filed by the Assistant Commissioner of Income Tax-1(1), Raipur (the Revenue) against Shri Javed Ali Pradhan (the Assessee). The tax effect assessed by the Department in this appeal was approximately Rs. 6,65,333/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, establishing monetary limits for filing appeals. For appeals before the High Court, this limit was set at Rs. 50,00,000/-. The circular was made effective retrospectively. The present appeal's tax effect was below this stipulated monetary limit.

What were the issues?

1. Whether the Income Tax Appeal filed by the Revenue is maintainable before the High Court, considering the tax effect and the CBDT circular dated 11-7-2018? (Question of law) The Revenue contended that the appeal was filed prior to the issuance of the CBDT circular, and therefore, the circular should not be applied retrospectively to dismiss the appeal. The Revenue also argued that the circular itself states that appeals may be filed on merits keeping in view the monetary limits, implying discretion. The Respondent (Assessee) did not record any specific arguments in the judgment.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 103 of 2018 • Assistant Commissioner of Income Tax-1(1), Central Revenue Building, Civil Lines, Raipur, District- Raipur, Chhattisgarh. ---- Petitioner Versus • Shri Javed Ali Pradhan, Pradhan House, Civil Lines, 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.6,65,333/-. 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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