2019 (5) TMI 1944 - HC - Income Tax

Maintainability of appeal on low tax effects - monetary limit to file appeal before high court - HELD THAT - In the present Income Tax Appeal the tax effect assessed by the Department is at about Rs.28,25,234/-. The Central Board Direct Taxes (CBDT) has issued a circular on 11-7-2018 deciding that the Department Appeals may be filed on merits before the Income Tax Appellate Tribunal, High Courts and SLPs/Appeals before the Supreme Court keeping in view the monetary limits stating further that henceforth appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits provided in para 3 of the circular. For appeals before the High Court the monetary limit is Rs.50,00,000/-. The circular dated 11-7-2018 has been made effective retrospective vide para 13 thereof. In view of the CBDT circular, since in the present appeal the tax effect is below the monetary limit, the same is dismissed. However, the question of law raised in the appeal shall remain open for decision in an appropriate case.

Summary

The Chhattisgarh High Court dismissed an Income Tax Appeal due to the tax effect being below the monetary limit of Rs.50,00,000 as per a circular issued by the Central Board of Direct Taxes (CBDT) on 11-7-2018. The question of law raised in the appeal will remain open for decision in a suitable case.