THE DEPUTY COMMISSIONER OF INCOME TAX 1 (1) vs. SMT. BABITA SARAOGI
What did the High Court hold?
The High Court held that the Income Tax Appeal filed by the Revenue is dismissed in view of the CBDT circular dated 11-07-2018. The reasoning is that the tax effect in the present appeal (Rs. 40,74,120/-) is below the monetary limit of Rs. 50,00,000/- prescribed for appeals before the High Court. The circular was made effective retrospectively. The ratio decidendi is that appeals falling below the prescribed monetary limits, as per CBDT circulars, are to be dismissed. The operative direction is the dismissal of the appeal. The question of law raised in the appeal is expressly left open for decision in an appropriate case.
What were the facts?
The Income Tax Appellate Tribunal (ITAT) is considering an appeal filed by the Deputy Commissioner of Income Tax (Revenue) against Smt. Babita Saraogi (Assessee). The tax effect in dispute is approximately Rs. 40,74,120/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, establishing monetary limits for filing departmental appeals. For appeals before the High Court, this limit is Rs. 50,00,000/-. This circular was made effective retrospectively. The present appeal falls 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 given the tax effect and the CBDT circular dated 11-07-2018. The Revenue's contention is not recorded in the judgment. The Assessee's contention is not recorded in the judgment. The judgment relies on the CBDT circular which states that appeals shall not be filed where the tax effect does not exceed the monetary limits provided therein, with the limit for High Court appeals being Rs. 50,00,000/-.
AI-generated summary — verify with the full judgment below
NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 142 of 2018 • The Deputy Commissioner of Income Tax 1(1), Raipur, Chhattisgarh. ---- Petitioner Versus • Smt. Babita 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.40,74,120/-. 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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