DEPUTY COMMISSIONER OF INCOME TAX vs. BHOJRAJ LAL CHAND NAWANI
What did the High Court hold?
The High Court held that the appeal is dismissed in view of the CBDT circular dated 11-7-2018. The circular mandates that departmental appeals shall not be filed where the tax effect does not exceed the specified monetary limits, which for High Court appeals is Rs. 50,00,000/-. Since the tax effect in this case is Rs. 28,25,234/-, which is below the prescribed limit, the appeal is not maintainable. The Court explicitly stated that the question of law raised in the appeal shall remain open for decision in an appropriate case. No specific operative directions for remand or deletion were issued, as the appeal was dismissed on a procedural ground.
What were the facts?
The Income Tax Appellate Tribunal (ITAT) is considering an appeal filed by the Deputy Commissioner of Income Tax 1, Bhilai (Petitioner/Revenue) against Bhojraj Lal Chand Nawani (Respondent/Assessee). The tax effect in dispute is approximately Rs. 28,25,234/-. 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/-. The circular was made effective retrospectively. The present appeal falls below this stipulated monetary limit.
What were the issues?
1. Whether the 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 High Court appeals, and considering the tax effect in the present case is Rs. 28,25,234/-. Contentions: Assessee: Not recorded. Revenue: The Revenue has filed the appeal. The judgment does not explicitly record the Revenue's arguments, but their action of filing the appeal implies they seek to pursue it on merits. The CBDT circular is noted as a factor influencing the decision.
AI-generated summary — verify with the full judgment below
NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 11 of 2019 • Deputy Commissioner of Income Tax 1, Bhilai, District – Durg, Chhattisgarh. ---- Petitioner Versus • Bhojraj Lal Chand Nawani, 10-11, Kamla Bhawan, Industrial Estate, Goregaon (E), Mumbai, Maharastra ---- 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.28,25,234/-. 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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