COMMISSIONER OF INCOME TAX vs. M/S.SRI AMBIKA SAW MILL
What did the High Court hold?
The High Court dismissed the Tax Case Appeals filed by the Revenue on the ground of tax effect. The Court referred to Circular No. 17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, which specifies that the monetary limit for filing appeals before the High Court is Rs. 1,00,00,000 (Rupees One Crore). Since the tax effect in these appeals was stated to be less than Rs. 1 crore, the appeals were dismissed. However, the Court explicitly stated that the substantial questions of law framed were left open. Liberty was granted to the Revenue to make a mention to the Court to restore the appeals for hearing and decision on merits if the tax effect is found to be above the limit fixed in the circular. No costs were imposed. The connected miscellaneous petitions were also closed.
What were the facts?
The Revenue (Commissioner of Income Tax, TDS Ward, Tirunelveli) filed three Tax Case Appeals (T.C.A.Nos.1045, 1048 & 1050 of 2019) against the order dated 12.07.2017 passed by the Income Tax Appellate Tribunal (ITAT), Chennai 'B' Bench. The ITAT had dismissed the Revenue's appeals against the order of the Commissioner of Income Tax (Appeals), which had allowed the appeals filed by the assessee, M/s. Sri Ambika Saw Mill. The assessment years involved are 2013-14, 2014-15, and 2015-16. The appeals were admitted on substantial questions of law concerning the belated filing of Form No. 27C and the ITAT's consideration of a Supreme Court SLP.
What were the issues?
1. Whether, on the facts and circumstances of the case and in law, the Hon'ble ITAT was right in holding that the belated filing of Form No. 27C by the assessee after the due date specified in sub-rule (3) of Rule 37C of the Income-tax Rules, 1962, was in accordance with law and hence the object sought to be achieved by filing Form 27C was substantially achieved? 2. Whether, on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in not considering the Special Leave Petition (SLP) filed by the Revenue, which was admitted by the Apex Court in the case of Siyaram Metal Udyog Pvt Ltd., on the issue of submission of Form 27C? Contentions of the Revenue: The learned Senior Standing Counsel for the appellant (Revenue) submitted that the tax effect in these cases is less than Rs. 1 crore. He relied on Circular No. 17/2019 dated 08.08.2019 issued by the CBDT, which prescribes a monetary limit of Rs. 1 crore for filing appeals before the High Court. Therefore, the appeals should be dismissed on this ground. Contentions of the Assessee: No arguments were recorded for the assessee.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
T.C.A.Nos.1045, 1048 & 1050 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.Nos.1045, 1048 & 1050 of 2019 and C.M.P.Nos.27083, 27086 & 27090 of 2019 Commissioner of Income Tax, TDS Ward, Tirunelveli.
... Appellant in all appeals Vs M/s.Sri Ambika Saw Mill, 1/515, Piranoor Border, Thenkasi Road, Shenkottah, Tirunelveli Dist - 627 809. PAN: AAOFS3889 D
...Respondent in all appeals COMMON PRAYER: Tax Case Appeals filed under Section 260A of Income Tax Act, 1961 against the order dated 12.07.2017 in I.T.A.Nos.985, 986 & 987/Mds/2017 on the file of the Income Tax Appellate Tribunal Chennai 'B' Bench for the assessment years 2013- 14, 2014-15 & 2015-16. For Appellant : Mr.Karthik Ranganathan, Senior Standing Counsel. 1/6 http://www.judis.nic.in T.C.A.Nos.1045, 1048 & 1050 of 2019 C O M M O N J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) These tax case appeals have been filed against the order of the Income Tax Appellate Tribunal dated 12.07.2017 in I.T.A.Nos.985, 986 & 987/Mds/2017 in dismissing the appeal filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) by which the appeal filed by the assessee was allowed. 2.Heard Mr.Karthik Ranganathan, learned Senior Standing Counsel for the appellant. 3.These tax case appeals are admitted on the following substantial questions of law: "(i)Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was right in holding that the belated filing of Form No.27C by the assessee after the due date as specified in sub rule (3) of Rule 37C of Income- tax Rules, 1962 was in accordance with law and hence the object sought to be achieved by filing Form 27C substantially achieved? 2/6 http://www.judis.nic.in T.C.A.Nos.1045, 1048 & 1050 of 2019 (ii)Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in not considering the SLP filed by the revenue was admitted by the Apex Court in the case of Siyaram Metal Udyog Pvt Ltd., on the issue of submission of Form 27C [2017] 78 taxmann.com 157 (SC)?"
Mr.Karthik Ranganathan, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the tax effect in this case is less than Rs.1 crore and is covered by Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, Delhi. As per the said circular, the monetary limit to file an appeal before the High Court is fixed at Rs.1 crore. In this case, tax effect is less than Rs.1 crore and therefore, the appeals have to be dismissed. 5.This Court perused the circular dated 08.08.2019 and Paragraph No.2 of the Circular, which prescribes monetary limit for filing appeal. Paragraph No.2 is usefully extracted as follows: 3/6 http://www.judis.nic.in T.C.A.Nos.1045, 1048 & 1050 of 2019 "2.As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals / SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appeallate Tribunal 50,00,000 2. Before High Court 1,00,00,000 3. Before Supreme Court 2,00,00,000" 6.In view of the submissions made by the learned counsel appearing on behalf of the appellant and also in view of the Circular No.17/2019 dated 08.08.2019 issued by the Director, Central Board of Direct Taxes, Delhi, these Tax Case Appeals are dismissed on account of tax effect. However, the substantial questions of law framed are left open. In the event the tax effect is above the limit fixed in the said 4/6 http://www.judis.nic.in T.C.A.Nos.1045, 1048 & 1050 of 2019 circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeals to be heard and decided on merits. No costs. Consequently, connected miscellaneous petitions are closed.
(N.K.K.,J.) (P.V.,J.) 20.12.2019 ay To Commissioner of Income Tax, TDS Ward, Tirunelveli. 5/6 http://www.judis.nic.in T.C.A.Nos.1045, 1048 & 1050 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN, J. ay T.C.A.Nos.1045, 1048 & 1050 of 2019 and C.M.P.Nos.27083, 27086 & 27090 of 2019 Dated:20.12.2019 6/6 http://www.judis.nic.in
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