DEPUTY COMMISSIONER OF INCOME TAX1 (1) vs. SHILESH A SHAH 68/8

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TAXC/64/2018HC ChhattisgarhCGHC01018506201830 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 CBDT circular dated July 11, 2018, which stipulated 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. 44,83,661/-, which is below the prescribed limit, the appeal was considered not maintainable under the circular. 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 or denied on merits.

What were the facts?

The Income Tax Department, through the Deputy Commissioner of Income Tax 1(1), Bilaspur, filed an appeal before the High Court of Chhattisgarh, Bilaspur. The appeal concerned assessment years not specified in the judgment. The tax effect assessed by the Department was approximately Rs. 44,83,661/-. 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/-. 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 Petitioner (Revenue) is maintainable before the High Court in light of the CBDT circular dated 11-7-2018, considering the tax effect involved. Contentions: Assessee: No specific contentions are recorded for the assessee in the judgment. Revenue: The Revenue filed the appeal, and the issue revolves around the applicability of the CBDT circular which sets monetary limits for filing appeals. The Revenue's appeal was filed when the tax effect was below the prescribed limit.

AI-generated summary — verify with the full judgment below

NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 64 of 2018 • Deputy Commissioner of Income Tax 1(1), Bilaspur (C.G.) ---- Petitioner Versus • Shilesh A Shah, 68/8, Nehru Nagar (West) Bhilai, District – Durg (C.G.) ---- 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.44,83,661/-. 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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