INCOME TAX OFFICER-2 (1) vs. K. RAVINDRANATHAN NAIR
What did the High Court hold?
The High Court held that the appeal filed by the Revenue is not maintainable due to the tax effect being below the monetary limit prescribed by the CBDT circular dated 11-7-2018. The circular, which sets a threshold of Rs. 50,00,000/- for appeals before the High Court, was made effective retrospectively. Consequently, the appeal was dismissed on this procedural ground. However, the Court explicitly stated that the question of law raised in the appeal shall remain open for decision in an appropriate case. No specific relief was granted or denied on the merits of the case.
What were the facts?
This Income Tax Appeal was filed by the Income Tax Officer, 2(1), Raipur (the Revenue) against K. Ravindranathan Nair, Prop. Shivam Publicity (the assessee). The tax effect assessed by the Department was approximately Rs. 26,36,737/-. 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 was Rs. 50,00,000/-. The circular was made effective retrospectively. The present appeal's tax effect was 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, considering the tax effect is below the prescribed monetary limit of Rs. 50,00,000/- for High Court appeals. The Revenue contended that the CBDT circular dated 11-7-2018, which sets monetary limits for filing departmental appeals, should be applied. As the tax effect in this appeal (Rs. 26,36,737/-) is below the specified limit of Rs. 50,00,000/- for High Court appeals, the appeal is not maintainable. The assessee's contentions are not recorded in the judgment.
AI-generated summary — verify with the full judgment below
NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 99 of 2018 • Income Tax Officer, 2(1), Aaykar Bhawan, Raipur, Chhattisgarh. ---- Petitioner Versus • K. Ravindranathan Nair, Prop. Shivam Publicity, Nathani Building, Bhudapara, 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.26,36,737/-. 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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