The Commissioner Of Income v. Mr.Mahaveerchand Bhurat

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 29.04.2016

CORAM:

THE HONOURABLE MR.JUSTICE NOOTY.RAMAMOHANA RAO AND THE HONOURABLE MR.JUSTICE M.V.MURALIDARAN Tax Case (Appeal) Nos.1255,1256 & 1257 of 2010 The Commissioner of Income-Tax-II, Coimbatore.

.. Appellant in all appeals / Appellants Vs.

Mr.Mahaveerchand Bhurat .. Respondent in TCA.No.1255/2010/ Respondent Smt.Viditha Bhurat .. Respondent in TCA No.1256/2010/ Respondent Mr.Manojkumar Bhurat .. Respondent in TCA No.1257/2010/ Respondent T.C.A.No.1255 to 1257 of 2010 are filed under Section 260-A of the Income Tax Act against the order dated 18.06.2010 made in I.T.A.No.1525 to 1527/Chny/2008, on there file of the Income Tax Appellate Tribunal, 'A' Bench, Chennai respectively, preferred against the order of the Commissioner of Income Tax (Appeals-I), Coimbatore made in ITA 202, 203 and 201/07-08 dated 12.05.2008 for the Assessment Year 2005-2006 and preferred against the Assessment order of the Income Tax Office ward I(2) Erode, 12 PM0946; AEMPV3105L/12PV0589 and ADBPB8003A/12PM0622 respectively for the Assessment year 2005-2006.

For appellant : Mr.T.R.Senthilkumar, Standing Counsel for Income Tax For respondents: Mr.R.Sivaraman COMMON JUDGMENT (Judgment of the Court was delivered by Nooty.Ramamohana Rao,J) These Tax Case Appeals, being old matters, have been taken up for final disposal by us today. These appeals are preferred by the Commissioner of Income Tax-II, Coimbatore, aggrieved by

the order, dated 18.06.2010, passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.1525/Chny/2008, I.T.A.No.1526/Chny/2008 and I.T.A.No.1527/Chny/ 2008, respectively.

2. Learned counsel for the respondent-assessee, in the form of a memorandum, has raised a preliminary objection with regard to the sustainability of the Department's Tax Case Appeal, based upon the instructions contained in Circular No.21 of 2015, dated 10.12.2015 issued by the Central Board of Direct Taxes, New Delhi.

3. The said Circular No.21 of 2015 deals with the subject matter of revision of mandatory limits for filing of the appeals by the Department before the Income Tax Appellate Tribunal, High Courts and Special Leave Petitions before the Supreme Court. Various measures are devised from time to time for reducing the unproductive litigations. In paragraphs 3 and 10 of the said Circular, the following instructions have been issued: "3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:- Sl.

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." "10. The instruction will apply retrospectively to pending appeals 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."

4. From the above instructions contained in the Circular, learned counsel for the respondent/assessee submitted that

pending appeals before the High Court, below the specified tax limits as stated in paragraph 3 of the Circular, are liable to be withdrawn/not pressed. The limits prescribed in paragraph 3 insofar as the appeals before the High Court are concerned, they are set out for Rs.20 lakhs. According to the learned counsel for the respondent/assessee, the total tax effect in the instant cases is to the value of Rs.9,58,486/-, 12,57,213/- and 12,07,991/- respectively, and hence, it being less than the limit of tax effect specified in paragraph 3 of the said Circular at Rs.20 lakhs, these appeals deserve to be dismissed either as withdrawn or not pressed.

5. At this stage, learned Standing Counsel appearing for the appellant/Revenue (Department) urged that having noticed the instructions contained in the said Circular, he has already taken up the matter with the Department, but however, he has not received any instructions in writing from the Department and hence, he cannot withdraw these appeals.

6. It is appropriate to notice that the Central Board of Direct Taxes has issued the instructions contained in the said Circular in exercise of its power available to it under Section 268-A(i) of the Income Tax Act,1961 and hence, the Circular has statutorily enforceable character. In that view of the matter, we treat these appeals as dismissed as withdrawn, in view of the instructions received by the learned Standing Counsel to that effect, and dismiss them as such. However, it goes without saying that the questions of law raised in these appeals for consideration of this Court are kept open to be decided on merits in an appropriate case. No costs.

Sd/- Assistant Registrar(CS-III) //True Copy// Sub Assistant Registrar dixit To

1. The Assistant Registrar, Income Tax Appellant Tribunal, A Bench, Chennai.

2. The Commissioner of Income Tax Appelas I, Coimbatore.

3. The Income Tax Officer, Ward I(2), Erode.

1 cc to Mr.T.R.Senthilkumar, Advocate, sr.27730 T.C.A.Nos.1255-1257 OF 2010 msm co kra 22.06.2016