2016 (9) TMI 1373 - HC - Income Tax

Maintainability of appeal - monetary limit - Held that - It is not in dispute that the total tax factor is less than 20, 00, 000/- in each of these appeals and that they do not fall within anyone of the exceptions. As such present appeals stand disposed of. Pending applications if any also stand disposed of.

Summary

Issues involved:
1. Circular No. 21/2015 issued by the Government of India regarding tax effect threshold for filing appeals in High Court.

Analysis:
The judgment delivered by the High Court of Himachal Pradesh pertains to the implementation of Circular No. 21/2015 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The Circular mandates that appeals filed in the High Court by the Income Tax Department must specifically mention when the tax effect exceeds ?20,00,000, except in certain exceptional circumstances. These exceptions include cases challenging the constitutional validity of provisions, instances where Board orders are deemed illegal, cases where Revenue Audit objections are accepted, or matters related to undisclosed foreign assets or bank accounts.

The Court noted that the total tax effect in the appeals under consideration was less than ?20,00,000 and did not fall within any of the exceptional categories outlined in the Circular. Consequently, the appeals were disposed of, and any pending applications were also resolved accordingly. This judgment underscores the importance of adhering to the prescribed tax effect threshold when filing appeals in the High Court, as outlined in the Circular issued by the Government of India. The Court's decision serves as a reminder for strict compliance with the Circular's provisions to ensure consistency and efficiency in the judicial process related to tax matters.