GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (5) TMI 112 - BOMBAY HIGH COURT

2016 (5) TMI 112 - BOMBAY HIGH COURT - [2016] 381 ITR 443 - Monetary limit - appeal to High court - Held that:- CBDT to ensure that there is uniformity in respect of filing of appeals has fixed threshold limits which would do away with the discretion of the officer to file and pursue the appeal remedy where the tax effect is less than the minimum amounts specified. It is noteworthy that the Circular specifically provides that where the tax effect is higher than that specified in the Circular the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

15. There is no reason why the circular should not apply to pending References where the tax effect is less than ₹ 20 lacs as the objective of the Circular would stand fulfilled on its application even to pending References more particularly bearing in mind that there are 1149 number of References still awaiting disposal by this Court and a large number of them would have tax effect of less than ₹ 20Lakhs.

In the above view, we hold that as admittedly, the tax effect is le .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion 256(1) of the Income Tax Act, 1961 (the Act) is Income Tax Appellate Tribunal at the instance of the Revenue, seeks our opinion on the following question of law: Whether on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the order of the CIT(A) that assessee's business of Dubbing and sound recording is a manufacturing/ processing activity and assessee is entitled or investment allowance on plant and machinery? . 2 Mr. Suresh Kumar, learned Couns .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

it applies only to pending appeals as it does not make any mention of References under Section 256(1) of the Act. However, we pointed out to Mr. Suresh Kumar that on an identically worded Instruction No. 5 of 2015 issued by the CBDT(where also References under Section 256 of the Act are not mentioned), we have held that it applies even to pending References under Section 256(1) of the Act in CIT v/s. M/s. Computer Point (I) Ltd. (Income Tax Reference No. 430/1997) decided on 24 July 2015. In th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f Income Tax. At that stage, we also enquired of Mr. Mihir Naniwadekar, Advocate who was present in Court - whether he would assist us on the issue of the applicability of the Circular dated 10th December, 2015 issued by the CBDT to the pending References under Section 256 of the Act at 3.00 p.m.. This was agreed to by Mr. Naniwadekar. 3 When this Reference was again called out for hearing at 3.00 p.m., Mr. Suresh Kumar learned Counsel appearing for the Revenue pointed out that the Commissioner .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

0 lacs were being considered, we had specifically asked the learned Counsel for the Revenue including Mr. Suresh Kumar on the department's view of the applicability of the Circular to pending References and we were informed (one of us was a member of that bench) that due instructions on that account would be obtained and communicated to the Court at the hearing of the References. It is pertinent to note that this Reference was listed for today almost a week in advance. However no assistance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oresaid facts we are required to examine whether the Circular No. 21/2015 dated 10 December 2015 applies to pending References having a tax effect of less than ₹ 20 lacs. 4 The Circular dated 10th December, 2015 bearing No. 21/ 2015 issued by the CBDT under Section 268A of the Act reads as under:S. Circular No.21/2015 F No. 279/Misc. 142/2007ITJ( Pt) Government of India Ministry of Finance Department of Revenue Central Board Direct Taxes New Delhi the 10th December, 2015. Subject:Revision .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s been decided by the Board that departmental appeals may be filed on merits before Appellate Tribunal and High Courts and SLP before the Supreme Court keeping in view the monetary limits and conditions specified below. 3 Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceeds the monetary limits given hereunder: S No. Appeals in Income Tax matters Monetary Limit (in Rs.) 1 Before Appellate Tribunal 10,00,000/ 2 Before High Court 20,00,000/ 3 Before Supreme Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fter referred to as disputed issues ). However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ar 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 wit 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 mo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gh the decision is not acceptable, appeals is not being filed only on the consideration that the tax effect is less than the monetary limit specified in this instruction . Further, in such cases, there will be no presumption that the Income Tax Department has acquiesced in the decision on the disputed issues. The Income Tax Department shall not be precluded from filing an appeal against the disputed issues in the case of the same assessee for any other assessment year, or in the case of any othe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing 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 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 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

of an Act or Rule are 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 in the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts. 9 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 co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s 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. 11 This issue under Section 268A(1) of the Income Tax Act, 1961. 5 From a reading of the aforesaid Circular it is clear that it does not advert to pending References. It only makes mention about nonfiling .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he orders of the Tribunal passed after 1998. Therefore now there are no References being filed in the Court under Section 256 of the Act and thus the Circular does not deal with the same. Moreover as pointed out earlier in this order, this Court in M/s. Computer Point (I) Ltd. (supra) interpreting the earlier circular/instructions No.5 dated 10th July, 2014 (no mention as in this Circular about References) issued by the CBDT, has held that it would apply also to pending references. The aforesaid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sis of holding that 2014 instructions would apply to pending References which reads as under: 4:Therefore, in view of the Instruction No.5 dated 10 July, 2014 read with decision of this Court in Commissioner of Income Tax v/s. Madhukar Inamdar (HUF) - 318 ITR 149; Commissioner of Income Tax v/s. Pithwa Engineering Works - 276 ITR 598 and Commissioner of Income Tax v/s. Vijaya Kawekar - 380 ITR 237 (dealing with earlier Circulars/ Instructions) the instructions of 2014 issued by CBDT would also 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

are choked with huge pendency of cases. …........ In this view the Board has rightly taken a decision not to file appeals, if the tax effect is less than ₹ 4 lakhs so as to reduce the burden of the Department as well of the Tribunals and courts. The same policy for old matters needs to be adopted by the department, so as to achieve the object of the policy laid down by the Central Board of Direct Taxes. 6 We find that the Circular dated 10 December, 2015 is identically worded to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

anrit Hotel, Madgao, Goa (supra) and hold that even though the 2015 Circular does not specifically refer to References just as the instruction No.5 of 2014, it should apply even to pending References under Section 256 of the Act. This is so as the entire objective of the Circular in having been made retrospective is that the Court should concern itself with grievances of the Revenue having substantial financial stake in terms of the tax involved and normally the decision of the Tribunal up to th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ied in the Circular. 7 One feature in support of the submission that the Circular be not applied to References could be that the References are opinions sought by the Tribunal on questions of law from this Court unlike statutory appeals filed by the parties, seeking the view of the Courts. However though these References are undoubtedly made by the Tribunal, they emanate from an application by one of the parties before it leading to the order giving rise to the question of law requiring the opin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the case of a Reference the Tribunal is of the view that a substantial question of law arises either on its own (Section 256(1) of the Act) or as directed by Court (Section 256(2) of the Act) which requires the opinion of the Court, while in a pending appeal under Section 260A of the Act which has been admitted, the Court is of the view that a substantial question of law arises which requires due consideration by the Court. Therefore we construe the Circular dated 10th December 2015 as applicabl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and the Assessee. In 2001, the total number of appeals filed under Section 260A of the Act in this Court in the aggregate were 648 and 546 of there were filed by the Revenue. In 2009, the total number of appeals filed under Section 260A of the Act in the aggregate was 4266, out of which, that filed by the Revenue were 3790. However, it may be pointed out that in 2015, the total number of appeals filed under Section 260A of the Act in the aggregate was 2384, out of which, that filed by the Reven .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sed against the department as having accepted the position in law. It is in that view that the Circular of 2015 clarifies that non filing of appeal in view of low tax effect will not be used against the Revenue in other appeals. Therefore the CBDT to ensure that there is uniformity in respect of filing of appeals has fixed threshold limits which would do away with the discretion of the officer to file and pursue the appeal remedy where the tax effect is less than the minimum amounts specified. 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

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

21-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| 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