PRINCIPAL COMMISSIONER OF INCOME TAX - I vs. M/S A. DAGA ROYAL ARTS JAIPUR

ITA/314/2018HC RajasthanRJHC02099891201817 November 2021Bench: AKIL KURESHI,REKHA BORANA1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was not maintainable. The reasoning was based on the concession made by the learned counsel for the department, who was unable to dispute the assessee's averments. The assessee had pointed out that the tax effect involved in the appeal was below the minimum threshold prescribed by the CBDT in its circular dated 08/08/2019 for maintaining appeals in the High Court. Consequently, the Court dismissed the appeal as not maintainable. IA No.1/2021 was also disposed of along with the appeal. The ratio decidendi is that appeals filed before the High Court, where the tax effect falls below the stipulated monetary limit set by the CBDT, are liable to be dismissed as not maintainable, especially when the Revenue concedes this point.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - I, Jaipur (Revenue) against M/s A. Daga Royal Arts, Jaipur (Assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The procedural history indicates that the Revenue filed the appeal before the High Court. During the proceedings, the Revenue's counsel acknowledged that the tax effect involved in the appeal was below the minimum threshold prescribed by the CBDT circular dated 08/08/2019 for maintaining appeals in the High Court. An application, IA No.1/2021, was also disposed of.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, given that the tax effect is below the threshold prescribed by the CBDT circular dated 08/08/2019? Assessee's Contention: The assessee pointed out that the tax effect involved in the appeal is below the minimum threshold prescribed by the CBDT in its latest circular dated 08/08/2019, making the appeal not maintainable. Revenue's Contention: The learned counsel for the department could not dispute the averments made by the assessee regarding the tax effect being below the prescribed threshold.

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 314/2018 Principal Commissioner Of Income Tax - I, New Central Revenue Building, Statue Circle Jaipur (Raj.) ----Appellant Versus M/s A. Daga Royal Arts Jaipur, 157, Jangid Bhawan M.i. Road Jaipur. ----Respondent For Appellant(s) : Mr. Anuroop Singhi For Respondent(s) : Mr. Abhishek Wadhwa on behalf of Mr. Rajendra Kumar Salecha through VC HON'BLE THE CHIEF JUSTICE MR. AKIL KURESHI HON'BLE MS. JUSTICE REKHA BORANA Order 17/11/2021 Learned counsel for the department is not in a position to dispute the averments made by the assessee in the application pointing out that the tax effect involved in this appeal is below the minimum thresh-hold prescribed by the CBDT in its latest circular dated 08/08/2019 to maintain the appeal in the High Court. In that view of the matter, the appeal is dismissed as not maintainable. IA No.1/2021 is also disposed of. (REKHA BORANA),J (AKIL KURESHI),CJ ANIL KUMAR GOYAL /BM GANDHI/32

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