THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) vs. MAHESH KUMAR JAIN
What did the High Court hold?
The High Court dismissed the appeal. The reasoning was based on the submission made by the learned counsel for the appellant (revenue) that the appeal's tax effect of Rs. 28,08,240 was less than Rs. 50,00,000, and therefore, in light of Circular No. 3/2018 issued by the Central Board of Direct Taxes, the appeal might not be maintainable. The court found this submission persuasive and proceeded to dismiss the appeal on this ground. The ratio decidendi is that appeals with a tax effect below the threshold specified in CBDT Circulars are not maintainable. The operative direction was the dismissal of the appeal. The appellant was granted liberty to apply for revival if the case fell within the conditions stipulated in Clause 10 of the circular.
What were the facts?
The appeal was filed by the Principal Commissioner of Income Tax (Central), Jaipur against an order concerning assessment year(s) not specified. The assessee is Mahesh Kumar Jain. The appeal's tax effect was Rs. 28,08,240. The appeal was filed before the High Court of Judicature for Rajasthan, Bench at Jaipur. The procedural history involves the appellant's submission regarding the maintainability of the appeal based on a CBDT Circular.
What were the issues?
1. Whether the appeal is maintainable before the High Court in view of Circular No. 3/2018 issued by the Central Board of Direct Taxes, given the tax effect of Rs. 28,08,240, which is less than Rs. 50,00,000? Assessee's Contention: The assessee did not present any arguments. Revenue's Contention: The revenue, through its learned counsel, submitted that in view of Circular No. 3/2018, the appeal may not be maintainable as its tax effect is below the prescribed monetary limit.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No.217/2018 The Principal Commissioner Of Income Tax (Central), Jaipur ----Appellant Versus Mahesh Kumar Jain, R.D Mittal Hospital, City Road, Madanganj, Kishangarh, District Ajmer (Rajasthan) ----Assessee/Respondent For Appellant(s) : Mr. Raunak Bapna for Mr. Anil Mehta HON'BLE MR. JUSTICE MOHAMMAD RAFIQ HON'BLE MR. JUSTICE GOVERDHAN BARDHAR Order 26/10/2018 Learned counsel for the appellant submits that in view of Circular No.3/2018 issued by Central Board of Direct Taxes, present appeal having tax effect of only Rs.28,08,240/-, which is less than Rs. 50,00,000/- may not be maintainable. In view of above, present appeal is dismissed in the light of aforesaid instruction. This also disposes of D.B. Civil Miscellaneous Application No.2118/2018 However, the appellant will be at liberty to apply for revival of the appeal in case its case falls within the purview of any of the condition stipulated in Clause 10 of the aforesaid circular. (GOVERDHAN BARDHAR), J. (MOHAMMAD RAFIQ), J. //Jaiman//73
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