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2016 (8) TMI 1567 - HC - Income TaxMaintainability of appeal low tax effect - HELD THAT - As none of the appeals have a tax effect of ₹ 20,00,000/- or more, Ms. Kanani, learned Counsel appearing for the Revenue does not press any of the Appeals.
Issues:
Determining the applicability of Circular No.21 of 2015 regarding tax effect limits for filing appeals in Income Tax matters. Analysis: The judgment arises from the Income Tax Appellate Tribunal's order related to four appeals for Assessment Years 2005-06, 2006-07, 2007-08, and 2008-09. The Counsel for the Revenue referred to Circular No.21 of 2015 issued by the Central Board for Direct Tax, emphasizing paragraphs 3, 5, and 10. Paragraph 3 sets monetary limits for filing appeals, specifying different thresholds for appeals before the Appellate Tribunal, High Court, and Supreme Court. It clarifies that filing an appeal should be based on the case's merits, not solely on exceeding the monetary limits. Paragraph 5 addresses composite orders involving multiple assessment years and common issues, requiring appeals for all years if the tax effect exceeds the limit in any year. Each assessee in a composite order should be treated separately. Paragraph 10 states that the circular applies retrospectively to pending and future appeals in High Courts/Tribunals. Appeals below specified tax limits may be withdrawn. Supreme Court appeals follow the instructions applicable at the filing time. In this case, the tax effect for each appeal memo falls below the prescribed monetary limits as per paragraph 10 of the circular. The tax effects for the appeals concerning Assessment Years 2005-06, 2006-07, 2007-08, and 2008-09 are 6.35 lakhs, 10.52 lakhs, 4.08 lakhs, and 14.46 lakhs, respectively. Since none of the appeals exceed the threshold of ?20,00,000, the Counsel for the Revenue did not press any of the appeals. Consequently, all the appeals were dismissed as not pressed, and a refund of court fees was ordered as per the rules. Therefore, the High Court dismissed the appeals as the tax effect did not meet the prescribed monetary limit for filing appeals before the High Court, in accordance with Circular No.21 of 2015.
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