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

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TAXC/95/2018HC ChhattisgarhCGHC01018513201830 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 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 11-7-2018. The circular clearly states that appeals shall not be filed where the tax effect does not exceed Rs. 50,00,000/- for High Court appeals. Since the tax effect in this case was Rs. 10,59,667/-, which is less than Rs. 50,00,000/-, the appeal was dismissed on this ground. 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 purely on procedural grounds related to the monetary limit and not on the merits of the substantive legal issue.

What were the facts?

The Income Tax Department, through the Assistant Commissioner of Income Tax-1(1), Raipur, filed an appeal before the High Court of Chhattisgarh, Bilaspur, against an order concerning Shri Javed Ali Pradhan. The tax effect assessed in this appeal was approximately Rs. 10,59,667/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, establishing monetary limits for filing appeals by the Department. For appeals before the High Court, this limit was set at Rs. 50,00,000/-. This circular was made effective retrospectively. Consequently, the present appeal fell below the stipulated monetary threshold.

What were the issues?

1. Whether the Income Tax Appeal filed by the petitioner (Revenue) is maintainable before the High Court in light of the CBDT circular dated 11-7-2018, which sets a monetary limit of Rs. 50,00,000/- for High Court appeals, given that the tax effect in the present case is Rs. 10,59,667/-. Contentions: Assessee: No specific contentions are recorded for the assessee in the judgment. Revenue: The Revenue relied on the CBDT circular dated 11-7-2018, which stipulated monetary limits for filing appeals. The Revenue implicitly argued that the appeal should be considered on its merits, but the judgment focuses on the monetary limit set by the CBDT.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 95 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.10,59,667/-. 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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