The High Court dismissed the Revenue's Income Tax appeals as withdrawn. The court accepted that the tax effects in the pending appeals fell below the statutory monetary limits under Central Board Circular No. 21 of 2015, leaving the Revenue with no basis to press the appeals.
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.
438-13-ITXA-c=.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO. 438 OF 2013 WITH
INCOME TAX APPEAL NO. 481 OF 2013
Director of Income Tax (IT)-II
.. Appellant
v/s.
Hari Karan Nath Mishra
.. Respondent
Mr. Tejveer Singh for the appellant None for the respondent
CORAM : M.S. SANKLECHA & A.K. MENON, J.J.
DATED : 14th DECEMBER, 2016.
P.C.
April, 2012 passed by the Income Tax Appellate Tribunal. These appeals relate to Assessment Years 2007-08 and 2008-09.
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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) |
|---|---|---|
| 438 of 2013 | 2008-09 | Rs.15.07 lakhs |
| 481 of 2013 | 2007-08 | Rs.6.31 lakhs |
(A.K. MENON, J.)
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1 issue framed by the court
Whether Income Tax Appeals filed by the Revenue are maintainable given the tax effect below the ₹20,00,000 limit prescribed by CBDT Circular No. 21 of 2015.
1 provisions across 1 enactments
Director of Income Tax (IT)-II
Hari Karan Nath Mishra
M.S. Sanklecha
A.K. Menon
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
