2016 (7) TMI 1554 - HC - Income Tax

Monetary limit - maintainability of appeal in High Court - low tax effect - HELD THAT - In the present case the tax effect is 9.17 lakhs as mentioned in paragraph 10 of the Appeal Memo. In view of the above Mr. Suresh Kumar learned Counsel appearing for the Revenue does not press the present Appeal.

Summary

Issues:
Appeal related to Assessment Year 1997-98. Application of Circular No. 21 of 2015 by the Revenue regarding monetary limits for filing appeals in tax matters. Tax effect below the specified limit in the present case. Dismissal of the appeal by the Revenue.

Analysis:
The judgment by the High Court of Bombay pertains to an appeal concerning the Assessment Year 1997-98. The learned Counsel for the Revenue referred to Circular No. 21 of 2015 issued by the Central Board for Direct Tax, emphasizing the monetary limits for filing appeals in tax matters. The Circular specifies different monetary limits for appeals before the Appellate Tribunal, High Court, and Supreme Court. It highlights that appeals should not be filed solely based on exceeding the monetary limits but on the merits of the case. The Circular applies retrospectively to pending and future appeals in High Courts and Tribunals, allowing for withdrawal or not pressing of appeals below the specified tax limits.

In the present case, the tax effect is noted to be ?9.17 lakhs, falling below the prescribed limit for appeals before the High Court. Consequently, the Counsel for the Revenue decided not to press the appeal, leading to its dismissal by the Court. The judgment reflects adherence to the Circular's guidelines, ensuring appeals are pursued based on merit rather than solely on the tax effect. The Court also directed the refund of Court Fees as per the Rules, concluding the matter comprehensively and in line with the Circular's directives.