THE COMMISSIONER OF INCOME T vs. SHRI RAMSINGH KUMAR

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TCA/696/2019HC Madras03 March 2020Bench: Hon`ble Mr Justice M. SATHYANARAYANAN5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, in its common judgment, recorded the submission made by the learned standing counsel for the Appellant/Revenue. The Revenue fairly submitted that since the tax effect under the impugned orders is less than Rs. 1,00,00,000/-, CBDT Circular No. 17/2019 dated 08.08.2019 shall apply. This circular enhances the monetary limits for filing appeals by the Department before various appellate authorities, including High Courts, to reduce litigation. The circular stipulates that no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. Based on this submission and the circular, the Court dismissed the appeals. The substantial questions of law raised in these appeals were left open for consideration in the near future. No costs were awarded, and the connected miscellaneous petitions were closed.

What were the facts?

These are three Tax Case Appeals (TCAs) filed by the Commissioner of Income Tax, Chennai (Revenue) against the orders of the Income Tax Appellate Tribunal (ITAT) for Assessment Years 2010-11, 2011-12, and 2012-13. The appeals challenge the ITAT's decisions concerning Shri Ramsingh Kumar (assessee). The Revenue's appeals are filed under Section 260-A of the Income Tax Act, 1961. The procedural history indicates that the appeals were filed against the ITAT's orders in ITA Nos. 2194/Mds/2016, 2195/Mds/2016, and 2196/Mds/2016.

What were the issues?

1. Whether the appeals filed by the Revenue are maintainable before the High Court given the tax effect. The Revenue contended that the tax effect under the impugned orders is less than Rs. 1,00,00,000/-. Consequently, Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT) should apply, and the appeals may be dismissed, leaving the substantial questions of law open for future consideration. The Revenue relied on CBDT Circular No. 17/2019. The Assessee did not record any specific arguments, but the Revenue's submission implies the assessee would likely agree with the application of the circular.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.Nos.696 to 698 of 2019 and CMP.Nos.20926 & 20935 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 03.03.2020 CORAM THE HONOURABLE MR.JUSTICE M.SATHYANARAYANAN and THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE T.C.A.Nos.696 to 698 of 2019 and CMP.Nos.20926 & 20935 of 2019 The Commissioner of Income Tax, Chennai

.. Appellant in all TCAs. Versus Shri Ramsingh Kumar .. Respondent in all TCAs. Prayer in TCA.No.696 of 2019 :- Tax Case Appeal filed under Section 260- A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal made in I.T.A.No.2194/Mds/2016 relating to the Asst. Year: 2010-11. Prayer in TCA.No.697 of 2019:- Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal made in I.T.A.No.2195/Mds/2016 relating to the Asst. Year: 2011-12. 1/5 http://www.judis.nic.in T.C.A.Nos.696 to 698 of 2019 and CMP.Nos.20926 & 20935 of 2019 Prayer in TCA.No.698 of 2019:- Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal made in I.T.A.No.2196/Mds/2016 relating to the Asst. Year: 2012-13. For Appellant in all TCAs : Mr.T.Ravikumar For Respondent in all TCAs. : Mr.R.Sivaraman COMMON JUDGMENT [Order of the Court was made by ABDUL QUDDHOSE, J.] Heard Mr.T.Ravikumar, learned standing counsel for the Appellant/Revenue and Mr.R.Sivaraman, learned counsel for the respondent/assessee. 2.The learned standing counsel for the revenue fairly submitted that since the tax effect under the impugned orders is less than Rs.1,00,00,000/-, the circular No.17 of 2019 dated 08.08.2019 issued by the Central Board of Direct Taxes shall apply and the appeals may be dismissed leaving the substantial questions of law raised in these appeals open for consideration in the near future. The circular No.17 of 2019 dated 08.08.2019 reads as follows: 2/5 http://www.judis.nic.in T.C.A.Nos.696 to 698 of 2019 and CMP.Nos.20926 & 20935 of 2019 “Circular No.3/2018 dated 11th July 2018 has been replaced by Circular No.17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal High Courts and SLPs/appeals before Supreme Court for reducing litigation. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) (Previous Limits) Monetary Limit (Rs.) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000 • The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. 3/5 http://www.judis.nic.in T.C.A.Nos.696 to 698 of 2019 and CMP.Nos.20926 & 20935 of 2019 • Further, even in the case of composite order of High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit. • In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately. 3. Recording the aforesaid circular as well as the submission made by the learned standing counsel for the Appellant/Revenue, the Appeals are dismissed leaving the substantial questions of law raised by the Appellant open for consideration in the near future. No costs. Consequently, connected miscellaneous petitions are closed.

(M.S.N.,J) (A.Q.,J) 03.03.2020 nl Index: Yes / No Internet: Yes / No Speaking Order/Non-Speaking Order 4/5 http://www.judis.nic.in T.C.A.Nos.696 to 698 of 2019 and CMP.Nos.20926 & 20935 of 2019 M.SATHYANARAYANAN, J. AND ABDUL QUDDHOSE, J. nl T.C.A.Nos.696 to 698 of 2019 and CMP.Nos.20926 & 20935 of 2019 03.03.2020 5/5 http://www.judis.nic.in

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