2015 (12) TMI 1881 - HC - Income Tax

Maintainability of appeal before HC - low tax effect - HELD THAT - In the present case, the tax effect is Rs. 5.07 lakhs as mentioned in paragraph 10 of the Appeal Memo. Revenue does not press the present Appeal.

Summary

Issues:
- Applicability of Circular No.21 of 2015 issued by the Central Board for Direct Tax
- Tax effect threshold for filing appeals in Income Tax matters

Analysis:
The judgment by the High Court of Bombay pertains to the Assessment Year 1989-90 and revolves around the interpretation and application of Circular No.21 of 2015 issued by the Central Board for Direct Tax. The circular sets monetary limits for filing appeals in Income Tax matters before different authorities. Specifically, the circular states that appeals should not be filed solely based on exceeding the monetary limits, and the decision to file an appeal in such cases should be based on the merits of the case. The circular also clarifies that it will apply retrospectively to pending appeals and those to be filed in the future before High Courts and Tribunals. Appeals below the specified tax limits may be withdrawn or not pressed, as per the circular's instructions.

In the present case before the High Court, the tax effect is noted to be Rs. 5.07 lakhs, falling below the monetary limit specified for appeals before the High Court. Consequently, the learned Counsel representing the Revenue, Mr. Suresh Kumar, decided not to press the appeal based on the tax effect being below the prescribed limit. As a result, the High Court dismissed the appeal as not pressed and ordered the refund of court fees in accordance with the rules. This judgment highlights the importance of adhering to the monetary limits set by the Circular for filing appeals in Income Tax matters and emphasizes the need to consider the case's merits before initiating legal proceedings.