THE INCOME TAX OFFICER vs. SMT. SARLA GUPTA

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TAXC/148/2018HC ChhattisgarhCGHC01033821201830 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 appeal was not maintainable before it due to the tax effect being below the monetary limit prescribed by the CBDT circular dated July 11, 2018. The Court noted that the circular, which sets a limit of Rs. 50,00,000/- for appeals before the High Court, was made effective retrospectively. Consequently, the appeal was dismissed on this procedural ground. 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 merits of the case were not adjudicated.

What were the facts?

The Income Tax Officer, Jagdalpur (Petitioner) filed an Income Tax Appeal before the High Court of Chhattisgarh, Bilaspur, against Smt. Sarala Gupta (Respondent). The tax effect assessed by the Department in this appeal was approximately Rs. 23,27,726/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, stipulating monetary limits for filing appeals by the Department. For appeals before the High Court, the monetary limit was set at Rs. 50,00,000/-. This circular was made effective retrospectively.

What were the issues?

1. Whether the present appeal, with a tax effect of Rs. 23,27,726/-, is maintainable before the High Court in light of the CBDT circular dated July 11, 2018, which sets a monetary limit of Rs. 50,00,000/- for High Court appeals, and which has been made effective retrospectively. Contentions: Assessee: No specific contentions recorded for the assessee in this excerpt. Revenue: The Revenue relied on the CBDT circular dated July 11, 2018, to argue that the appeal should not have been filed due to the tax effect being below the prescribed monetary limit.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 148 of 2018 • The Income Tax Officer, Aaykar Bhawan, Behind Jhankar Talkies, Civil Lines, Jagdalpur, District – Bastar Chhattisgarh. ---- Petitioner Versus • Smt. Sarala Gupta, W/o Mukesh Gupta, Prop. M/s. Electronic Traders, Vadhera Complex, Jagdalpur, District - Bastar 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.23,27,726/-. 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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