THE DEPUTY COMMISSIONER OF INCOME TAX 1 vs. SMT. SUNITA SARAOGI

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TAXC/137/2018HC ChhattisgarhCGHC01026553201830 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 dismissed the Income Tax Appeal filed by the Revenue. The dismissal was based on the Central Board of Direct Taxes (CBDT) circular dated July 11, 2018, which established a monetary limit of Rs. 50,00,000/- for filing appeals before the High Court. Since the tax effect in the present appeal was Rs. 26,96,463/-, which is below the prescribed limit, the appeal was not maintainable. The Court noted that the circular was made effective retrospectively. However, the Court explicitly stated that the question of law raised in the appeal would remain open for decision in an appropriate case. No specific relief was granted to either party on the merits of the case.

What were the facts?

This Income Tax Appeal was filed by the Deputy Commissioner of Income Tax 1(1), Raipur, against Smt. Sunita Saraogi. The tax effect assessed by the Department was approximately Rs. 26,96,463/-. The Central Board of Direct Taxes (CBDT) issued a circular on July 11, 2018, stipulating monetary limits for filing appeals before various authorities. For appeals before the High Court, the monetary limit was set at Rs. 50,00,000/-. This 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 11-7-2018, which sets a monetary limit of Rs. 50,00,000/- for appeals before the High Court, and whether the retrospective effect of the circular applies to the present case? Assessee's Contention: The judgment does not record any specific contentions from the assessee. The appeal was dismissed based on the CBDT circular. Revenue's Contention: The Revenue filed the appeal. The judgment does not explicitly detail the Revenue's arguments, but it implies they pursued the appeal despite the tax effect being below the monetary limit, likely relying on the merits of the case or the retrospective application of the circular.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 137 of 2018 • The Deputy Commissioner of Income Tax 1(1), Raipur, Chhattisgarh. ---- Petitioner Versus • Smt. Sunita Saraogi, 513/2, Saraogi House, Shankar Nagar 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.26,96,463/-. 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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