PR COMMISSIONER OF INCOME TAX JAIPUR-III vs. M/S CLARITY GOLD PVT LTD

ITA/229/2018HC RajasthanRJHC02065971201827 November 2018Bench: MOHAMMAD RAFIQ,GOVERDHAN BARDHAR1 pages

AI SummaryDismissed

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 tax effect of the appeal was Rs. 31,50,205, which is below the threshold of Rs. 50,00,000 stipulated in Circular No. 3/2018 issued by the Central Board of Direct Taxes. Therefore, the appeal was considered not maintainable in light of the aforesaid instruction. The appellant was granted liberty to apply for revival of the appeal if its case falls within the conditions stipulated in Clause 10 of the circular. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit in CBDT circulars are not maintainable. No specific issue was left undecided.

What were the facts?

The appellant, Pr Commissioner of Income Tax Jaipur-III, filed an appeal before the High Court of Judicature for Rajasthan, Bench at Jaipur, against an order concerning M/s Clarity Gold Pvt Ltd. The appeal was filed for the assessment year(s) not specified in the judgment. The amount in dispute was Rs. 31,50,205. The procedural history leading to this appeal is not detailed, other than the filing of the present appeal by the revenue.

What were the issues?

1. Whether the appeal is maintainable in light of the tax effect being less than Rs. 50,00,000, as per CBDT Circular No. 3/2018? (Question of law) Assessee's Contention: The learned counsel for the appellant (revenue) submitted that in view of Circular No. 3/2018 issued by the Central Board of Direct Taxes, the present appeal, having a tax effect of only Rs. 31,50,205, which is less than Rs. 50,00,000, may not be maintainable. Revenue's Contention: Not recorded.

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No.229/2018 Pr Commissioner Of Income Tax Jaipur-Iii, Jaipur, Ncr Building, Statue Circle, C-Scheme, Jaipur ----Appellant Versus M/s Clarity Gold Pvt Ltd, 4, Ganga Vihar, Sardar Patel Marg, C- Scheme, Jaipur ----Respondent For Appellant(s) : Mr. Daksh Pareek HON'BLE MR. JUSTICE MOHAMMAD RAFIQ HON'BLE MR. JUSTICE GOVERDHAN BARDHAR Order 27/11/2018 Learned counsel for the appellant submits that in view of the Circular No.3/2018 issued by the Central Board of Direct Taxes, present appeal having tax effect of only Rs.31,50,205/-, 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. 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 conditions stipulated in Clause 10 of the aforesaid circular. (GOVERDHAN BARDHAR),J (MOHAMMAD RAFIQ),J //Jaiman//57

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