2018 (11) TMI 1623 - HC - Income Tax

Monetary limit - maintainability of appeal - HELD THAT - It is an admitted position between the parties that the tax effect involved in this appeal is less than ₹ 50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of ₹ 50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal.

Summary

Issues:
1. Tax effect below ?50,00,000 in the appeal.

Analysis:
The High Court of Gujarat heard the appeal where the tax effect involved was less than ?50,00,000. Both parties agreed on this fact. The Court referred to Circular No.3/2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular stated that appeals with a tax effect below ?50,00,000 should not be filed before the High Court. The circular was also made applicable retrospectively to pending appeals. Due to this circular, the appellant's senior standing counsel did not press the appeal. Consequently, the appeal was disposed of as not pressed based on the Circular dated 11th July 2018.

In the judgment, it was mentioned that if there were any errors in the computation of the tax effect or if the circular was found not applicable for any reason, the appellant could seek revival of the appeal. This provision ensured that in case of any discrepancies or exceptions, the appellant had the option to request a review of the decision. The Court's decision was based on the specific monetary limit set by the circular and the mutual agreement of the parties regarding the tax effect in the appeal. The judgment highlighted the importance of adhering to the circular's guidelines and the implications of not meeting the specified tax effect threshold for filing appeals before the High Court.