COMMISSIONER OF INCOME TAX vs. WILSON AND COMPANY

TCA/888/2019HC Madras22 November 2019Bench: Hon`ble Mr Justice N. KIRUBAKARAN4 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Tax Case Appeal filed by the Revenue. The dismissal was based on the submission made by the Revenue's counsel regarding the tax effect being less than Rs. 1 crore, which falls below the monetary limit for filing appeals before the High Court as stipulated in CBDT Circular No. 17/2019 dated 08.08.2019. The Court noted that Paragraph 2 of the circular specifies the monetary limit for appeals before the High Court as Rs. 1,00,00,000. While the appeal was dismissed on this procedural ground, the substantial question of law framed by the Court was expressly left undecided. The Revenue was granted liberty to mention the case for restoration if the tax effect is found to be above the prescribed limit, to be heard and decided on merits. No costs were awarded.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed a Tax Case Appeal before the High Court of Judicature at Madras against an order dated 09.02.2007 passed by the Income Tax Appellate Tribunal (ITAT), Chennai 'C' Bench. The ITAT had dismissed the Revenue's appeal against the order of the Commissioner of Income Tax (Appeals), which had partly allowed the assessee's appeal. The assessee is Wilson & Company, and the assessment year in question is 2000-01. The appeal was admitted on a substantial question of law concerning the Tribunal's reliance on an earlier year's order.

What were the issues?

1. Whether, on the facts and circumstances of the case, the Tribunal was right in dismissing the Revenue's appeal by merely relying on the earlier year order of the assessee herein on the ground that the assessment orders were set aside in appeal? (Question of law) Contentions: Assessee: No arguments recorded for the assessee in this judgment. Revenue: The learned Senior Standing Counsel for the appellant (Revenue) submitted 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 Central Board of Direct Taxes (CBDT). As per this circular, the monetary limit for filing an appeal before the High Court is Rs. 1 crore. Therefore, the appeal should be dismissed.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.888 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.11.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.No.888 of 2019 Commissioner of Income Tax, Chennai. ... Appellant Vs Wilson & Company, TBM Mansion II Floor, 739 Anna Salai, Chennai 600 002.

...Respondent PRAYER: Tax Case Appeal filed under Section 260A of Income Tax Act, 1961 against the order dated 09.02.2007 in I.T.A.No.130/Mds/2005 on the file of the Income Tax Appellate Tribunal Chennai 'C' Bench for the assessment year 2000-01. For Appellant : Mr.M.Swaminathan, Senior Standing Counsel. 1/4 http://www.judis.nic.in T.C.A.No.888 of 2019 J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) This tax case appeal has been filed against the order of the Income Tax Appellate Tribunal dated 09.02.2007 in I.T.A.No.130/Mds/2005 in dismissing the appeal filed by the Department of Revenue against the order of the Commissioner of Income Tax (Appeals) by which the appeal filed by the assessee was partly allowed. 2.Heard Mr.M.Swaminathan, learned Senior Standing Counsel for the appellant. 3.This tax case appeal is admitted on the following substantial question of law: "Whether on the facts and circumstances of the case, the Tribunal was right in dismissing the Revenue's appeal by merely relying on the earlier year order of the assessee herein on the ground that the assessment orders were set aside in appeal?"

4.Mr.M.Swaminathan, 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 2/4 http://www.judis.nic.in T.C.A.No.888 of 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 appeal has 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: "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" 3/4 http://www.judis.nic.in T.C.A.No.888 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN, J. ay 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, this Tax Case Appeal is dismissed on account of tax effect. However, the substantial question of law framed is left open. In the event the tax effect is above the limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits. No costs.

(N.K.K.,J.) (P.V.,J.) 22.11.2019 ay To Commissioner of Income Tax, Chennai.

T.C.A.No.888 of 2019

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