COMMISSIONER OF INCOME TAX JAI vs. HIRA LAL CHOUDHARY

ITA/401/2009HC RajasthanRJHC02037597200819 December 2018Bench: MOHAMMAD RAFIQ,GOVERDHAN BARDHAR1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal. The decision was based on the submission made by the appellant (Revenue) that the appeal might not be maintainable in light of Circular No. 3/2018 issued by the Central Board of Direct Taxes. This circular likely sets a monetary threshold for the tax effect of an appeal for it to be pursued by the Revenue. Since the counsel for the appellant conceded that the appeal might not be maintainable due to the tax effect being less than the prescribed limit (Rs. 50,00,000/-), the Court accepted this submission. The operative direction was to dismiss the appeal.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Jaipur-III, against an order concerning Shri Hira Lal Choudhary, Proprietor of M/s Choudhary Gum Factory. The appeal was listed consequent to an order allowing a recalling application, which recalled a previous order dated 01.08.2017. The appellant's counsel submitted that the appeal might not be maintainable in light of Circular No. 3/2018 issued by the Central Board of Direct Taxes, which stipulates a minimum tax effect for appeals to be maintainable.

What were the issues?

1. Whether the present appeal is maintainable in view of Circular No. 3/2018 issued by the Central Board of Direct Taxes, which specifies a minimum tax effect for appeals. Assessee's Contentions: The judgment does not record any specific contentions from the assessee's side regarding the maintainability of the appeal or the applicability of the circular. Revenue's Contentions: The appellant (Revenue) submitted that in view of Circular No. 3/2018, the present appeal, having a tax effect less than Rs. 50,00,000/-, may not be maintainable.

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D. B. Income Tax Appeal No. 401/2009 Commissioner of Income Tax, Jaipur-III, Jaipur ----Appellant. Versus Shri Hira Lal Choudhary, Proprietor M/s Choudhary Gum Factory, Riico Industrial Area, Renewal, District Jaipur ----Respondent For Appellant : Mr. Sameer Jain. HON'BLE MR. JUSTICE MOHAMMAD RAFIQ HON'BLE MR. JUSTICE GOVERDHAN BARDHAR Order 19/12/2018 This appeal has been listed before the Court consequent upon order passed by this Court today in D. B. Recalling Application No. 249/2018 whereby the aforesaid application has been allowed and order dated 01.08.2017 passed earlier in this appeal has been recalled. 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 less than Rs. 50,00,000/- may not be maintainable. In view of above, present appeal is dismissed in the light of aforesaid circular. (GOVERDHAN BARDHAR),J (MOHAMMAD RAFIQ),J Manoj/6

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