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

PDF · subscribers

TAXC/58/2018HC ChhattisgarhCGHC01018511201830 April 2019Author: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE SHRI JUSTICE PARTH PRATEEM SAHU2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the Income Tax Appeal filed by the Revenue was not maintainable before it due to the tax effect being below the monetary limit prescribed by the CBDT circular dated 11-07-2018. The circular, which sets a monetary limit of Rs. 50,00,000/- for appeals before the High Court and was made effective retrospectively, was the basis for the decision. Consequently, the appeal was dismissed. However, the Court explicitly stated that the question of law raised in the appeal would remain open for decision in an appropriate case, indicating that the dismissal was on procedural grounds related to the monetary limit and not on the merits of the legal question.

What were the facts?

The petitioner, Assistant Commissioner of Income Tax-1(1), Raipur, filed an Income Tax Appeal before the High Court of Chhattisgarh, Bilaspur. The tax effect assessed by the Department in this appeal was approximately Rs. 42,66,811/-. 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'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 in light of the CBDT circular dated 11-07-2018, which sets monetary limits for filing departmental appeals. Contentions of the Petitioner (Revenue): The Revenue relied on the CBDT circular dated 11-07-2018, which mandates that appeals shall not be filed where the tax effect does not exceed the specified monetary limits. The circular was made effective retrospectively. Contentions of the Respondent (Assessee): The judgment does not record any specific contentions made by the assessee.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 58 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.42,66,811/-. 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

Recent GST High Court judgments

Search GST case law →