2017 (5) TMI 1493 - AT - Wealth-tax

Maintainability of appeal - low tax effect - Held that - We hold that in the present bunch of appeals filed by the Revenue, where the tax effect is below ₹ 2 lakhs and applying Instruction No.05/2008, dated 15.05.2008 issued by the CBDT, the aforesaid appeals filed by the Revenue are not maintainable and hence, the same are dismissed.

Summary

Issues:
Appeals filed by Revenue against CWT(A) orders with tax effect below ?2 lakhs.

Analysis:
The judgment pertains to a bunch of nine appeals filed by the Revenue against separate orders of CWT(A)-I, Nashik, dated 20.06.2013, for different assessment years 2004-05 to 2007-08 under the Wealth Tax Act, 1957. The appeals were heard together and disposed of by a consolidated order. The main contention raised by the assessee was that the tax effect in these appeals was low, below ?2 lakhs, making the appeals not maintainable as per CBDT Instructions. The Authorized Representative highlighted various CBDT Instructions, starting from 2000, which prescribed monetary limits for filing appeals before the Appellate Tribunal, including for wealth-tax matters. The Chennai Bench's decision in a similar case was also referenced, where appeals with low tax effect were dismissed. The Departmental Representative for the Revenue acknowledged the issuance of Instructions by the CBDT. The Tribunal considered the limited issue of low tax effect in the appeals and the applicability of CBDT Instructions to direct tax matters, including wealth-tax.

The Tribunal referred to the Chennai Bench's decision in ACIT Vs. Dr. M.P. Naresh Kumar, where it was held that the monetary limits specified in CBDT Instructions for income-tax matters did not apply to direct tax matters other than income-tax. The Tribunal analyzed various CBDT Instructions, including those issued in 2000, 2007, and 2008, which specified monetary limits for filing departmental appeals in income-tax matters. It was observed that the Instructions superseded earlier circulars but did not affect the monetary limits for filing appeals in relation to other direct tax matters, such as wealth-tax. The Tribunal emphasized that the earlier Instructions applied to wealth-tax matters, and despite subsequent Instructions, the monetary limits for wealth-tax appeals remained in force. The Tribunal also considered the Kerala High Court's decision, which supported the application of Instructions to wealth-tax matters. Therefore, the Tribunal concluded that the appeals filed by the Revenue, where the tax effect was below ?2 lakhs, were not maintainable as per the CBDT Instructions, specifically Instruction No.05/2008. Consequently, all appeals of the Revenue were dismissed.

In conclusion, the Tribunal's judgment focused on the issue of low tax effect in appeals filed by the Revenue against CWT(A) orders. The decision was based on a thorough analysis of CBDT Instructions and precedents, emphasizing the applicability of monetary limits to wealth-tax matters. The Tribunal held that the appeals with tax effect below ?2 lakhs were not maintainable as per the Instructions, leading to the dismissal of all Revenue appeals.