The High Court dismissed three income tax appeals filed by the Revenue as withdrawn. The appellant counsel relied on Circular No.21 of 2015, which restricts High Court appeals to cases with a tax effect of Rs.20 lakhs or more. Since the tax effects fell below this limit, the appeals were dismissed.
All three appeals dismissed as withdrawn.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO.239 OF 2014 WITH INCOME TAX APPEAL NO.240 OF 2014 WITH INCOME TAX APPEAL NO.242 OF 2014
The Commissioner of Income-Tax-II Pune
.. Appellant
v/s.
Mrs. Alpana S. Sancheti
..Respondent
Mr. Vipul Bajpayee for the appellant
CORAM : M.S. SANKLECHA & A.K. MENON, J.J.
DATED : 16th AUGUST, 2016.
P.C.
2006-07 respectively. All the appeals have been filed by the Revenue from a common impugned order 22nd March, 2013 relating to Assessment Years 2005-06 to 2007-08.
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“3:- Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:-
| Sr. | Appeals in Income Tax matters | Monetary Limit |
|---|---|---|
| No. | (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.”
5. 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 specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In other words, henceforth, appeals can be filed only with reference to the tax effect in the relevant assessment year. However, in case of a composite order of any High Court or appellate authority, which involves more than one assessment year and common issues in more than one assessment year, appeal shall be filed in respect of all such assessment years even if the 'tax effect' is less than the prescribed monetary limits in any of the year(s), if it is decided to file appeal in respect of the year(s) in which 'tax effect' exceeds the monetary limit prescribed. In case where a composite order / judgment involves more than one assessee, each assessee shall be dealt with separately.”
“10:- This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/
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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 filed.”
| Appeal No. | Assessment Year | Amount (Tax effect) |
|---|---|---|
| 239 of 2014 | 2005-06 | Rs.12.54 lakhs |
| 240 of 2014 | 2007-08 | Rs.12.21 lakhs |
| 242 of 2014 | 2006-07 | Rs.12.21 lakhs |
(A.K. MENON, J.)
(M.S. SANKLECHA, J.)
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2 issues framed by the court
Whether appeals filed under monetary limits prescribed by Central Board of Direct Tax Circular No.21 of 2015 should be dismissed as withdrawn.
Whether the tax effect of the appeals exceeds the monetary limit specified in the relevant High Court.
Commissioner of Income-Tax-II Pune
Mrs. Alpana S. Sancheti
M.S. Sanklecha
A.K. Menon
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
