2016 (1) TMI 1462 - HC - Income Tax

Maintainability of appeal - monetary limit - HELD THAT - In view of the said submissions made by the learned counsels appearing for the Appellant/Revenue, the present tax case appeals stand dismissed, as withdrawn. It is made clear that the questions of law, which may arise for the decision of this Court, in the present tax case appeals, are left open to be considered and decided in appropriate cases, in accordance with law. It is also made clear that it would be open to the Appellant/Revenue to revive the tax case appeals, if it is found that the same had been withdrawn, inadvertently, even though the same falls under the exceptions mentioned in paragraph 8 of the Circular, within a period of twelve weeks from today.

Summary

Issues:
1. Withdrawal of tax case appeals due to Circular No.21 of 2015 issued by the Central Board of Direct Taxes.
2. Granting liberty to the Appellant/Revenue to revive the appeals if withdrawn inadvertently.
3. Dismissal of the tax case appeals as withdrawn with the possibility of considering questions of law in the future.

Issue 1: Withdrawal of tax case appeals due to Circular No.21 of 2015
The learned counsels for the Appellant/Revenue requested permission to withdraw the tax case appeals citing Circular No.21 of 2015 by the Central Board of Direct Taxes, which states that appeals with a tax effect less than Rs. 20,00,000 can be withdrawn. The court, considering this submission, dismissed the appeals as withdrawn, leaving the questions of law open for future consideration.

Issue 2: Granting liberty to revive appeals if withdrawn inadvertently
The Appellant/Revenue sought liberty to revive the tax case appeals if they were inadvertently withdrawn, even if falling under exceptions mentioned in paragraph 8 of the Circular. The court granted this liberty, allowing the Appellant/Revenue to revive the appeals within twelve weeks if such inadvertent withdrawal is discovered.

Issue 3: Dismissal of tax case appeals and consideration of questions of law
In light of the submissions made, the court dismissed the tax case appeals as withdrawn. However, it explicitly stated that the questions of law arising from these appeals can be considered and decided in appropriate cases in the future. The Appellant/Revenue was given the opportunity to revive the appeals within twelve weeks if they were withdrawn inadvertently, despite falling under exceptions mentioned in the Circular. No costs were awarded in this judgment.

This judgment from the Madras High Court addresses the withdrawal of tax case appeals based on Circular No.21 of 2015 by the Central Board of Direct Taxes. It highlights the court's decision to dismiss the appeals as withdrawn, while keeping the questions of law open for future consideration. The Appellant/Revenue was granted liberty to revive the appeals within twelve weeks if they were inadvertently withdrawn, even if falling under exceptions mentioned in the Circular. The judgment emphasizes the importance of adhering to tax regulations and procedures while providing a window for potential revival of appeals in specific circumstances.