Between vs Sundernagar
2021 Latest Caselaw 5931 HP

         IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
                      ON THE 29th DAY OF DECEMBER, 2021
                                  BEFORE




                                                             .
                   HON'BLE MS. JUSTICE SABINA





                                &
                HON'BLE MR. JUSTICE SATYEN VAIDYA





                  INCOME TAX APPEAL No. 6 of 2019.
    Between:-
    PR. COMMISSIONER OF INCOME TAX, SHIMLA.





                                       ....APPELLANT
    (BY  MR.   VINAY  KUTHIALA, SENIOR
    ADVOCATE WITH MS. VANDANA KUTHIALA,
    ADVOCATE).


    AND
    SH. SARABJIT SINGH, PROP. M/S SACHDEVA
    BROTHERS & J.S. CARGO, DHANOTU, TEHSIL


    SUNDERNAGAR, DISTRICT MANDI.
                                    ....RESPONDENT.
    (BY MR. VISHAL MOHAN, ADVOCATE.)






                This appeal coming on for admission after notice this day,

    Hon'ble Mr. Justice Satyen Vaidya, delivered the following:





                              JUDGMENT

2. By way of instant appeal, the revenue seeks to assail order

dated 05.11.2018, passed by the Income Tax Appellate Tribunal (for

short 'ITAT'), Chandigarh in ITA No. 530/CHD/2018.

3. Noticeably, the tax effect in the case, as per the version of

appellant itself, is Rs.43,50,334/-.

4. The monetary limits for filing of appeals by the revenue

.

before the Income Tax Appellate Tribunal, High Courts and

SLPs/appeals before the Supreme Court have been prescribed vide

Central Board Direct Taxes (for short 'CBDT') Circular No. 3 of 2018

dated 11.07.2018. The monetary limits have further been revised by the

CBDT vide Circular No. 17/2019 dated 8.8.2019, which reads as under:

"Circular No. 17 of 2019

Date - 8th August, 2019

Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme

Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation.

Circular No. 3/2018 dated 11th July 2018 has been

replaced by circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the

Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation.

Appeals/SLPs in Monetary Limit Monetary Limit Income-tax (Rs.) (Rs.) (Revised matters (Previous Limit) Limit) Before Appellate 20,00,000 50,00,000 Tribunal Before High 50,00,000 1,00,00,000 Court Before Supreme 1,00,00,000 2,00,00,000 Court

 The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment

.

year, appeal can be filed in respect of such

assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit. No appeal shall be filed in respect of an assessment year or years in which the tax

effect is less than the monetary limit.

 Further, even in the case of composite order of any High court or appellate authority which involves more than one assessment year and

common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect r is less than the monetary limit.

 In case where a composite order/judgment

involves more than one assessee, each assessee shall be dealt with separately."

5. The four exempted cases where the monetary limits will

not be a bar for filing the appeals before the Income Tax Appellate

Tribunal, High Courts and SLPs/appeals before the Supreme Court,

have been prescribed under Clause 10 of the CBDT Circular No. 3 of

2018, as under:

"10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:

(a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or

(b) Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or

(c) Where Revenue Audit objection in the case has been accepted by the Department, or

.

(d) Where addition relates to undisclosed foreign

income/undisclosed foreign assets (including financial assets)/ undisclosed foreign bank account."

6. The appellant contended that though the tax effect in the

instant case is less than the monetary limit prescribed by the aforesaid

circulars, but instant appeal is maintainable by application of Clause 10

(C) of CBDT Circular No.3 of 2018. We, however, are unable to agree

with the contentions so raised for the reason that Clause 10 (C) of the

circular relates to eventuality where the objection is raised by the

Revenue Audit and the same is accepted by the Department, whereas

we don't find the applicability of such clause in the facts and

circumstances of the instant case.

7. Hence, the appeal is not maintainable and the same is

accordingly disposed of, so also the pending miscellaneous

application(s), if any.

(Sabina) Judge

29th December, 2021. (Satyen Vaidya) (GR) Judge