Appeals filed by the Revenue were found not to press the matter before the Court as the tax effect was below the statutory monetary limit prescribed in Circular No.21 of 2015.
Both Income Tax Appeals are dismissed as not pressed. Court Fee refunded.
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.
I289.14
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO.289 OF 2014 WITH INCOME TAX APPEAL NO.441 OF 2014
Commissioner of Income
Tax-2, Mumbai .. Appellant v/s. M/s. Priya Limited .. Respondent
Mr. P.C. Chhotaray for the appellant. Mr. Atul Jasani for the respondent.
CORAM : M.S. SANKLECHA & A.K. MENON, JJ.
DATED : 9TH AUGUST, 2016. P.C.
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No.21 of 2015 dated 10th December, 2015 issued by the Central Board for Direct Taxes. In particular, our attention was invited to paragraphs 3, 5 and 10 therein which read as under:-
“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. ….....….. 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/ 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.”
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Rs.10.78 lakhs as mentioned in paragraph 11 of the Memo of Appeal for Assessment Year 2009-10.
(A.K. MENON, J.) (M.S. SANKLECHA, J.)
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Commissioner of Income Tax-2, Mumbai
M/s. Priya Limited
M.S. Sanklecha
A.K. Menon
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
