THE DEPUTY COMMISSIONER OF INCOME TAX 1(1), vs. SHRI MANOJ SARAOGI

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TAXC/144/2018HC ChhattisgarhCGHC01026549201830 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, having a tax effect of Rs. 17,06,120/-, falls below the monetary limit of Rs. 50,00,000/- stipulated by the CBDT circular dated July 11, 2018, for filing appeals before the High Court. Consequently, the appeal is dismissed on this ground. The court explicitly stated that the question of law raised in the appeal shall remain open for decision in an appropriate case, indicating that the dismissal is based on procedural/monetary grounds rather than the merits of the substantive legal issue. No operative directions for remand or deletion were issued.

What were the facts?

This is an Income Tax Appeal filed by the Deputy Commissioner of Income Tax, Raipur, against Shri Manoj Saraogi. The tax effect assessed by the Department in this appeal is approximately Rs. 17,06,120/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, establishing monetary limits for filing departmental appeals before various judicial forums, including the High Courts. For appeals before the High Court, the monetary limit is Rs. 50,00,000/-. This circular was made effective retrospectively.

What were the issues?

1. Whether the present Income Tax Appeal, with a tax effect of Rs. 17,06,120/-, 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. (Question of law) Contentions: Assessee: No specific contentions are recorded for the assessee in the judgment. Revenue: The revenue, through its advocates, presented the appeal. The judgment implicitly acknowledges the revenue's intent to pursue the appeal on merits, but the primary argument considered by the court relates to the applicability of the CBDT circular.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 144 of 2018 • The Deputy Commissioner of Income Tax 1(1), Raipur, Chhattisgarh. ---- Petitioner Versus • Shri Manoj Saraogi, C/o M/s. R.K. (Steels) Sales, Subhash Road, 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.17,06,120/-. 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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