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2018 (9) TMI 800 - HC - Income TaxRestoration of income tax appeal on the file of this Court - Held that - Neither the Revenue s Circular dated 11.7.2018 is referred nor any condition therein. If the condition now relied upon is with regard to the Revenue Audit Objection, then, mere raising of this objection in terms of this Circular is not enough. The Revenue will have to point out that this audit objection has been accepted by the Department. We have no such record before us. In the circumstances, we find that this is an attempt to get over the binding Circulars and in any case we shall not allow the Revenue to get over them in this manner. The Circulars continue to bind the Revenue and if they contain any conditions, whether such conditions are attracted or not would have to be proved and established by the Revenue. Once there is no such record before us, we do not countenance the oral request of Mr. Pinto. Consequently, we do not see any reason to entertain this appeal. It is dismissed.
Issues:
1. Restoration of an appeal erroneously withdrawn. 2. Interpretation of Circulars issued by the CBDT. 3. Conditions for conditional withdrawal as per Revenue Circular dated 11.7.2018. Issue 1: Restoration of an appeal erroneously withdrawn The appellant sought the restoration of an Income Tax Appeal that was erroneously withdrawn due to the tax effect being below the threshold as per a CBDT Circular. The appellant filed a notice of motion for the restoration of the appeal, contending that the appeal should be restored to the court's file, which would subsequently lead to the admission of the current appeal. However, the court noted that the appeal had not been restored to its file and highlighted a fallacy in the submission made by the appellant. Issue 2: Interpretation of Circulars issued by the CBDT The court observed that although the tax effect was initially below a specified threshold as per a CBDT Circular, a subsequent Circular dated 11.7.2018 increased the threshold amount. The court specifically pointed out a provision in the later Circular, which stated that adverse judgments on certain issues should be contested on merits regardless of the tax effect. The court emphasized the importance of considering all conditions mentioned in the Circular, especially regarding Revenue Audit objections. Issue 3: Conditions for conditional withdrawal as per Revenue Circular dated 11.7.2018 The appellant argued for a conditional withdrawal based on the Revenue Circular dated 11.7.2018, claiming that the Circular allowed for such withdrawals. However, the court rejected this argument, stating that the conditions mentioned in the Circular, such as the acceptance of Revenue Audit objections by the Department, must be proven and established by the Revenue. Since there was no record of such acceptance before the court, the court dismissed the appeal, emphasizing that the Circulars continue to bind the Revenue. In conclusion, the court dismissed the appeal, highlighting the importance of adhering to the conditions specified in Circulars issued by the CBDT and the need for the Revenue to establish compliance with those conditions before seeking withdrawal or restoration of appeals.
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