New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (7) TMI 697 - ITAT KOLKATA

2015 (7) TMI 697 - ITAT KOLKATA - TMI - Monetary limit to prefer an appeal - Whether, this appeal of revenue, which is below the prescribed limit of tax effect in view of the Board’s Instruction No.5/2014 issued on 10.07.2014 revising the monetary limits for filing of appeals by the Department before ITAT is maintainable or not? - Held that:- On query from the Bench, the Ld. DR could not point out any of the exceptions as provided in the Circular as that this is a loss case having tax effect mor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ction in the case has been accepted by the Department and the same is under challenge.

The learned Standing Counsel for the Revenue is not disputing the fact that the tax effect in the present case is less than ₹ 4 Lakhs and that the assessee's case does not fall within the exceptions specified in Instruction No.1979, dated 27.3.2000. Thus appeals are dismissed as not maintainable. - Decided against revenue. - ITA No. 1227/Kol/2012 - Dated:- 11-6-2015 - Mahavir Singh, JM And B. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssee stated that tax effect in this appeal of Revenue is below the prescribed monetary limits for filing of appeals before ITAT. In this appeal of Revenue, the quantum involved is ₹ 10,25,436/- on which total approximate tax effect is ₹ 3,08,000/-, which is much below ₹ 4 lakhs. The appeal relates to Assessment Year 2008-09 and filed before the Tribunal on 23.08.2012. Ld Counsel for the assessee stated that in view of the recent Instruction No. 5/2014 issued by CBDT on 10.07.20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o para-11 of the Instruction and argued that this will apply to the appeals filed on or after 10.07.2014 and not to the appeal filed prior to 10.07.2014. Hence, he vehemently opposed the argument of Ld. counsel for the assessee and stated that this instruction is prospective and not retrospective. 3. We have heard rival submissions and gone through the facts and circumstances of the case. At the outset, it is seen that Hon ble Delhi High Court in the case of CIT Vs M/s. P. S. Jain & Co. in I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cision not to file references if the tax effect less than ₹ 2 lakhs. The same policy for old matters needs to be adopted by the Department. In our view, the Board s circular dated March 27, 2000 is very much applicable even to the old references which are still undecided. The Department is not justified in proceeding with the old references wherein the tax impact is minimal. Thus, there is no justification to proceeds with decades old references having negligible tax effect." Similarl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ered and decided by the Aurangabad Bench of the Bombay High Court in Tax Appeal No. 78 of 2007, The Commissioner of Income Tax v. Smt. Vijaya V. Kavekar decided on 29.7.2011. The Division Bench, after considering earlier Instructions and various decisions of the Courts on Instructions, relying on the decision in Commissioner of Income Tax vs. Madhukar K. Inamdar (HUF) reported in (2010) 229 CTR (Bom) 77, has held in paragraphs 9, 10, 11, 14 and 17 as under: "9. As stated earlier, the Income .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se of "Commissioner of Income Tax V/s Madhukar K. Inamdar (HUF) reported in "(2010) 229 CTR (Bom) 77, interpreted the aforesaid Circular. The Circular was issued in supersession of all earlier instructions issued by the Board. The monetary limit was increased and appeals were to be filed under Section 260A, thereafter, only in cases where the tax effect exceeded ₹ 4 Lacs. Paragraph 11 of that instruction stipulated that it was applicable to appeals filed on or after 15th May, 200 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, if they involved a substantial question of law of a recurring nature, notwithstanding the fact that the total cumulative tax effect involved in the appeals was less than ₹ 4 Lacs. It was submitted, such appeals which were filed prior to the issuance of Instruction and where substantial questions of law were raised, were required to be decided on merits. The Court, while considering the issue observed that paragraph 5 of the Circular made it clear that no appeals would be filed in the cas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t is less than ₹ 4 Lakhs. In other words, even if the question of law is of recurring nature even then, the revenue is not expected to file appeals in such cases, if the tax impact is less than the monetary limit fixed by the CBDT." 7. One fails to understand how the Revenue, on the face of the above clear instructions of the CBDT, can contend that the circular dt. 15th May, 2008 issued by the CBDT is applicable to the cases filed after 15th May, 2008 and in compliance thereof, they d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ll the appeals having a tax effect of less than ₹ 4 Lacs. 10. The new CBDT instructions have been issued on 9th February, 2011, being Instruction no. 3 of 2011. The monetary limit has been raised again and clause 3 of the instructions provides that appeals shall not be filed in cases where the tax effect does not exceed the monetary limits prescribed, henceforth. The monetary limits prescribed for filing an appeal under Section 260A before the High Court has been raised to ₹ 10 Lacs. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ned by the instructions on this subject, operative at the time when such appeals were filed. 11. In our opinion, when a similar clause has been interpreted by the Division Bench of this Court in CIT vs. Madhukar Inamdar (Supra), the same principles must apply in the present cases also, as we have found that the instructions of 15th May, 2008 is para- material with the instruction of 9th February, 2011. 14. Similarly, the Delhi High Court in the case of "Commissioner of Income Tax V/s Delhi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Polycot Corporation (supra). However, the instruction of 2005 which was considered in Chhajer's case has also been interpreted in Polycot Corporation (supra). The consistent view of the Court has been that the CBDT instruction would apply to pending cases as well. The main objective of such instructions is to reduce the pending litigation where the tax effect is considerably small. Therefore, in our opinion, the tax appeals are required to be dismissed, as they are not maintainable in view .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

less than ₹ 10 lakhs, the appeal stands dismissed on the ground of monetary limit, without expressing any opinion on the merits of the claim, making it clear that the Department is at liberty to proceed against the assessee in future, if there any amount due from the assessee, on similar issue and if it is above the monetary limit prescribed." 4. We find from the above case law of Hon ble Gujarat High Court in the case of Sureshchandra Durgaprasad Khatod (HUF), (supra) that in the sim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed vide Instruction No.5/2014 FNo279/Misc.142/2007-ITJ(Pt) dated 10th July, 2014 will apply to pending appeals also for the reason that the same is exactly identical to earlier instructions. The relevant circular issued by CBDT reads as under: "Reference is invited to Board s instruction No 3/2011 dated 09/02/2011 wherein monetary limits and other conditions for filing departmental appeals (in income-tax matters) before Appellate Tribunal, High Courts and Supreme Court were specified. 2. In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

10,00,000/- 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. 4. For this purpose, "tax effect" means the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mean quantum of penalty deleted or reduced in the order to be appealed against. 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ears even if the tax effect is less than the prescribed monetary limits in any of the year(s), if it is decided to filed 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. 6. In a case where appeal before a Tribunal or a Court is not filed only on account of the tax effect being less than the monetary limit specified above, the Commiss .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ame assessee for any other assessment year, or in the case of any other assessee for the same or any other assessment year, if the tax effect exceeds the specified monetary limits. 7. In the past, a number of instances have come to the notice of the Bard, whereby an assessee has claimed relief from the Tribunal or the Court only on the ground that the Department has implicitly accepted the decision of the Tribunal or Court in the case of the assessee for any other assessment year or in the case .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

they should impress upon the Tribunal or the Court that such cases do not have any precedent value. As the evidence of not filing appeal due to this instruction may have to be produced in courts, the judicial folders in the office of CIT must be maintained in a systemic manner for easy retrieval. 8. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

earch), New Delhi and the decision to file Special Leave Petition shall be in consultation with the Ministry of Law and Justice. 10. The monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by the relevant provisions of statute & rules. Further filing of appeal in cases of Income Tax, where the tax effect is not quantifiable or not involved, such as t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version