Income Tax Officer, Ward 3 (2) , Darbhanga V. Sri Sushil Kumar, Darbhanga @ Sri Sushil Kumar Lohiya

MA/636/2018

AI Insights

The case involves an appeal by the Income Tax Department against a decision upheld by the Income Tax Appellate Tribunal, Patna Bench, which dismissed the department's earlier appeal. The core of the dispute was related to a tax matter concerning Sri Sushil Kumar Lohiya. However, during the pendency of the appeal in the High Court, a policy decision was made by the Government of India, as per Circular No. 3/2018, which advised against pursuing appeals where the tax effect is below certain thresholds, unless specific judicial pronouncements are involved. The department, adhering to this circular, decided to withdraw the appeal, leading to its dismissal by the court.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 719958 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 13-12-2018
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: MR NAME NOT PROVIDED
• Assessee Lawyers: RISHI SINHA; SHILPI KESHRI
• Keywords: Appeal Withdrawal; Income Tax; Monetary limits; Policy Decision
• Section: 13; 10; 3

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Miscellaneous Appeal No.636 of 2018 ====================================================== 1. Income Tax Officer, Ward 3 (2 ), Darbhanga 2. The Principal Commissioner of Income Tax, Muzaffarpur ... ... Appellants Versus Sri Sushil Kumar, Darbhanga @ Sri Sushil Kumar Lohiya, M/s Sriman Srimati, Laheriasarai, Darbhanga (PAN: ABWPL0066G) ... ... Respondent ====================================================== Appearance : For the Appellant/s : Mr. Rishi Raj Sinha, Sr.S.C. Ms. Shilpi Keshri, Sr.S.C., Income-tax For the Respondent/s : Mr. ====================================================== CORAM: HONOURABLE MR. JUSTICE JYOTI SARAN and HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD ORAL ORDER (Per: HONOURABLE MR. JUSTICE JYOTI SARAN) 3 13-12-2018 This appeal is directed against the order dated 15.03.2018 passed in I.T.A.No. 63/ Pat/ 2016 by the Income Tax Appellate Tribunal, Patna Bench, Patna whereby the order passed by the Commissioner of Income Tax (Appeals) has been upheld dismissing the appeal of the department. It is while the appeal is pending consideration before this Court that a policy decision has been taken by the Govt. of India, Ministry of Finance in its Department of Revenue, Central Board Direct Taxes bearing Circular No. 3/2018 dated 11.7.2018, whereby a decision has been taken not to pursue appeals and Special Leave Petitions where the tax effect does not exceed the monetary limits given under paragraph-3 of the circular. An exception is carved out at paragraph-10 wherein it Patna High Court MA No.636 of 2018(3) dt.13-12-2018 2/3 has been advised that such of the appeals which though come under the purview of the circular but are covered by judicial pronouncement should be contested on their merits. Paragraph- 13 of the circular further clarifies that it would apply not only to the Special Leave Petitions/ appeals/ cross objections/ references yet to be filed but also apply retrospectively to pending litigation. For the sake of convenience we reproduce paragraphs 3, 10 and 13 of the Circular No. 3/2018 for ready reference: “3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: S.No. Appeals/ SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1.00,00,000 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, Patna High Court MA No.636 of 2018(3) dt.13-12-2018 3/3 or (c) Where Revenue Audit objection in the case has been accepted by the Department, or (d) Where the addition relates to undisclosed foreign assets/ bank accounts. 13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/ Hcs/ Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/ references. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.” It is in view of the policy decision so taken by the Govt. of India that the matter has been listed at the instance of Mr. Rishi Raj Sinha, learned Senior Standing Counsel for the Income Tax Department, on receiving instructions from the Department, for withdrawal of the appeal. In view of the stipulations so present in Circular No. 3/2018 and taking note of the prayer made by Mr. Sinha, learned Senior Standing Counsel for the Income Tax Department, M.A.No. 636/2018 is dismissed as withdrawn. Surendra/- (Jyoti Saran, J) ( Rajeev Ranjan Prasad, J) U "