2017 (12) TMI 1604 - HC - Income Tax

Maintainability of appeal - Tax effect - monetary limit - Miscellaneous petition was filed by the Revenue before the Tribunal on the ground that Circular No.21/2015 of the Central Board of Direct Taxes is not applicable to the appeal filed by the Revenue - Held that - Tribunal verified the original files and on perusal of the the approval granted by the Principal Commissioner of Income Tax under Rule 15 of the Appellate Tribunal Rules 1963 the Tribunal found that the appeal was filed in the regular course and not on the basis of the audit objections. Tribunal ultimately concluded that paragraph 8 of Circular No.21/2015 issued by the Central Board of Direct Taxes is not applicable and accordingly the said miscellaneous petition filed by the Revenue was rejected. The Tribunal after having considered the factual position and verified the original files has taken a decision in the matter and we find no substantial question of law arises for consideration in this appeal as the entire finding is factual.

Summary

Issues:
Appeal against order of Income Tax Appellate Tribunal regarding applicability of Circular No.21/2015 of the Central Board of Direct Taxes.

Analysis:
The judgment delivered by the High Court of Madras pertains to an appeal directed against the order of the Income Tax Appellate Tribunal, 'D' Bench, Chennai. The Tribunal had rejected a miscellaneous petition filed by the Revenue, contending that Circular No.21/2015 of the Central Board of Direct Taxes was not applicable to the appeal filed by the Revenue. The Tribunal, upon examining the original files and the approval granted by the Principal Commissioner of Income Tax under Rule 15 of the Appellate Tribunal Rules, 1963, found that the appeal was filed in the regular course and not based on audit objections. Consequently, the Tribunal concluded that paragraph 8 of Circular No.21/2015 was not applicable, leading to the rejection of the miscellaneous petition by the Revenue. The High Court noted that the Tribunal's decision was based on factual considerations, and no substantial question of law arose for consideration in the appeal, as the findings were factual in nature.

The High Court, after considering the factual position and the verification of original files, upheld the decision of the Tribunal and dismissed the tax case appeal. The judgment underscores the importance of adherence to procedural rules and the significance of factual determinations in tax matters. It highlights the Tribunal's authority to assess the applicability of circulars issued by the Central Board of Direct Taxes and emphasizes the need for a thorough examination of relevant documents before reaching a decision. The judgment serves as a reminder of the judicial approach in tax disputes, focusing on factual analysis and procedural regularity to ensure fair and just outcomes in appeals related to tax matters.