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

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TAXC/72/2018HC ChhattisgarhCGHC01018546201830 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 in view of the CBDT circular dated 11-07-2018, which sets a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court and was made effective retrospectively, the present appeal with a tax effect of Rs. 42,02,281/- was below the prescribed limit. Consequently, 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. The operative direction was the dismissal of the appeal.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) was considering an appeal filed by the Assistant Commissioner of Income Tax-1(1), Raipur (the Revenue) against Shri Javed Ali Pradhan (the Assessee). The tax effect in dispute was approximately Rs. 42,02,281/-. The Central Board of Direct Taxes (CBDT) had issued a circular on July 11, 2018, stipulating 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 was filed after the issuance of this circular.

What were the issues?

1. Whether the present appeal, with a tax effect of Rs. 42,02,281/-, is maintainable before the High Court in light of the CBDT circular dated 11-07-2018, which sets a monetary limit of Rs. 50,00,000/- for High Court appeals, and which was made effective retrospectively. Contentions: Assessee: No specific contentions are recorded for the assessee in the judgment. Revenue: The Revenue filed the appeal. The judgment does not record specific arguments made by the Revenue, but implicitly relies on the CBDT circular to argue for dismissal.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 72 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.42,02,281/-. 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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