Commissioner of Income Tax-III vs. Y. Shivalinga Prasad

1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No.535/2011 Commissioner of Income Tax v. Smt. Chandra Kala Pandit Date of order 13.1.2016 Hon'ble Mr. Justice Ajay Rastogi Hon'ble Mr. Justice J.K. Ranka Ms. Parinitoo Jain, counsel for appellant By the Court 1. This appeal has been preferred against order dated 30.10.2009 of the Income Tax Appellate Tribunal. 2. As per the order additional affidavit of Commissioner of Income-tax the tax effect is Rs.17,79,741/- i.e. below Rs.20 lac. The matter is pending since 2011 and still service on the respondent assessee has not been effected so far. 3. It is brought to our notice that a Circular has been issued by the Central Board of Direct Taxes dated 10.12.2015 in exercise of its power u/sec. 268A (1) of the Income-tax Act 1961 laying down revision of monetary limits for filing of appeals by the Department before the Tribunal and High Courts and SLP before Supreme Court keeping in view the measures for reducing litigation. Para 3

2 of the Circular reads as under :- “3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder :- S. No. Appeals in Income-tax matters Monetary Limit (in Rs.) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. 4. xxx xxx xxx 5. xxx xxx xxx 6. xxx xxx xxx 7. xxx xxx xxx 8. xxx xxx xxx 9. The monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute & rules. Further, filing of appeal in cases of Income Tax, where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under section 12 A of the IT Act, 1961, shall not be governed by the limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of a particular case. 10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was

3 filed.” And laying down other conditions as well which has to be considered by the Assessing Officer or Appellate Authority as well the CBDT in paras 9 and 10 of the Circular it has been observed that the monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters, and at the same time these instructions will apply retrospectively to the pending appeals and appeals to be filed henceforth in High Courts/Tribunals, and also before the Supreme Court. 4. Taking note of the aforesaid Circular and the tax effect in the instant appeal which is much less than what has been prescribed for filing appeal before the High Courts, no purpose would be served to continue the present appeal any further. However, we make it clear that the substantial questions of law admitted/sought to be raised are left open to be considered in an appropriate case. 5. Accordingly, in the light of the CBDT Circular dated 10.12.2015 the appeal is dismissed. (J.K. Ranka) J. (Ajay Rastogi) J. db 149

4 [All corrections made in the judgment/order have been incorporated in the judgment/order being emailed.] Deepankar Bhattacharya PS