The Commission invited a request for withdrawal of an Income Tax appeal on merit due to low tax effect. Per Circular No.3/2018, the appeal was dismissed as withdrawn, with liberty to revive if outside the circular's ambit.
Appeal dismissed as withdrawn. Appellant at liberty to revive if not covered by Circular.
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.
T.A. No. 50 of 2002
Heard learned Sr. Standing Counsel for the appellant-Income Tax Department.
Letter No.F.No.Pr.CCIT/BBSR/Tech./Judl./201819/13804, dated 26.9.2018, has been received by the Registry of this Court from the Commissioner of Income Tax (Admn. & TPS.), Bhubaneswar, wherein a request has been made for withdrawal of this appeal which involves less tax effect than the prescribed limit, as per the Circular No.3/2018 issued by the Central Board of Direct Taxes dated 11.07.2018.
Perused the said letter along with the Circular of CBDT.
The said Circular No.3/2018 issued by the Central Board of Direct Taxes dated 11.07.2018 in exercise of its power u/sec. 268A of the Income-tax Act, 1961 reads as under:-
Circular No.3/2018
“F No 279/Misc. 142/2007-ITJ (Pt) Government of India Ministry of Finance Department of Revenue Central Board Direct Taxes
New Delhi the 11th July, 2018
Subject: Revision of monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court-measures for reducing litigationReg.
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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:
| S. No. | Appeals/ SLPs in Income- tax matters |
Monetary Limit (Rs.) |
|---|---|---|
| 1. | BeforeAppellate Tribunal | 20,00,000 |
| 2. | Before High Court | 50,00,000 |
| 3. | Before Supreme Court | 1,00,00,000 |
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.
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mean quantum of penalty deleted or reduced in the order to be appealed against.
A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of the disputed issues under general provisions; C = the total income assessed as per the provisions contained in section 115JB or section 115JC;
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D = the total income that would have been chargeable had the total Income assessed as per the provisions contained in section 115JB or section 1I5JCwas reduced by the amount of disputed issues under the said provisions:
However, where the amount of disputed issues is considered both under the provisions contained in section 115JB or section 115JC and under general provisions, such amount shall not be reduced from total income assessed while determining the amount under item D.
not filing an appeal on the same disputed issues. The Departmental representatives/ counsels must make every effort to bring to the notice of the Tribunal or the Court that the appeal in such cases was not filed or not admitted only for the reason of the tax effect being less than the specified monetary limit and,
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therefore, no inference should be drawn that the decisions rendered therein were acceptable to the Department. Accordingly, they should impress upon the Tribunal or the Court that such cases do not have any precedent value and also bring to the notice of the Tribunal/ Court the provisions of sub section (4) of section 268A of the Income-tax Act, 1961 which read as under :
"(4) The Appellate Tribunal or Court, hearing such appeal or reference, shall have regard to the orders, instructions or directions issued under sub-section (1) and the circumstances under which such appeal or application for reference was filed or not filed in respect of any case."
(a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or
(c) Where Revenue Audit objection the case has been accepted by the Department, or
(d) Where the addition relates to undisclosed foreign assets/ bank accounts.
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appeals in such cases may be taken on merits of a particular case.
In view of the above letter of request dated 26.9.2018 issued by the Commissioner of Income Tax (Admn. & TPS.), Bhubaneswar, the appeal is dismissed as withdrawn.
However, appellant is at liberty to revive this appeal if it is not coming within the ambit of the above Circular.
.…….......……………… ( K.S. Jhaveri ) Chief Justice
…………………..……… ( K. R. Mohapatra) Judge
MP
1 issue framed by the court
Whether the Income Tax appeal could be withdrawn based on CBDT Circular No.3/2018 regarding monetary limits.
1 provisions across 1 enactments
Income Tax Department
K.S. Jhaveri
K. R. Mohapatra
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
