The Commissioner Of Income Tax Central Iii, Mumbai v. Mirc Electronics Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 2487 OF 2013 The Commissioner of Income Tax Central III, Mumbai .. Appellant v/s.

Mirc Electronics Ltd.

.. Respondent Mr. Ashok Kotangale a/w Ms. Padma Divakar for the appellant Mr. Atul Jasani for the respondent CORAM : M.S. SANKLECHA & A.K. MENON, J.J.

DATED : 8th JUNE, 2016.

P.C.

1.

This Appeal relates to Assessment Year 2006-07. 2.

Mr. Kotangale, learned Counsel appearing for the Revenue points out that though the impugned order of the Tribunal relates to Assessment Years 2005-06 and 2006-07, the Appeal for A.Y. 2006-07 is on an issue which did not arise in the A.Y. 2005-06. Thus, this appeal has to be independently considered.

3.

He, therefore, invited our attention to Circular No.21 of 2015 issued by the Central Board for Direct Tax dated 10th December, 2015. In particular, our attention invited to paragraphs 3, 5 and 10 therein which read as under:-

"3:- Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:- Sr.

No.

Appeals in Income Tax matters Monetary Limit (in Rs.) Before Appellate Tribunal 10,00,000/- Before High Court 20,00,000/- 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/ Tribunals.

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."

(emphasis supplied) 4.

In the present case, the tax effect is Rs.16.03 lakhs as mentioned in paragraph 10 of the Appeal Memo.

5.

In view of the above, Mr. Kotangale, learned Counsel appearing for the Revenue does not press the present Appeal. 6.

Accordingly, Appeal is dismissed, as not pressed. 7.

Refund of Court Fees, as per Rules.

(A.K. MENON, J.) (M.S. SANKLECHA, J.)