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2016 Supreme(HP) 2095
IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Mansoor Ahmad Mir, Tarlok Singh Chauhan, JJ.
Commissioner of Income Tax, Shimla - Appellant
Versus
M/s Singhal Software, Parwanoo - Respondent
Income Tax Appeal Nos. 38, 39, 40, 41, 42, 52, 53 of 2009, Income Tax Appeal Nos. 1, 2 of 2011
Decided On : 05-04-2016
For the Appellants :Mr. Vinay Kuthiala, Senior Advocate, with Ms. Vandana Kuthiala, Advocate.
For the Respondents:Mr. B.C. Negi, Senior Advocate with Mr. Goverdhan Sharma, Mr. Sushant Kaprate, Mr. Aditya Sood and Mr. Saurav Rattan, Advocates.
The central legal point established in the judgment is the requirement for the Income Tax Department to specifically mention the tax effect while filing appeals in the High Court, with exceptions for certain matters.
Headnote:
Circular No. 21/2015 - Income Tax Appeals - The court disposed of appeals based on a circular requiring the Income Tax Department to specifically mention the tax effect while filing appeals in the High Court, with exceptions for certain matters.
Fact of the Case:
The appeals had a total tax factor less than Rs. 20,00,000 and did not fall within the exceptions specified in the circular.
Finding of the Court:
The court disposed of the appeals and pending applications based on the circular's requirements.
Issues: The main issue was whether the appeals met the criteria specified in the circular for filing appeals in the High Court.
Ratio Decidendi: The court applied the circular's provisions regarding the tax effect and exceptions to determine the disposal of the appeals.
Final Decision: The court disposed of the appeals and pending applications as the total tax factor was less than Rs. 20,00,000 and did not fall within the exceptions specified in the circular.
Mansoor Ahmad Mir, J. - Pursuant to circular No. 21/2015 issued vide F.No. 279/Misc.142/2007-ITJ(Pt) by Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes dated 10.12.2015, an office order dated 4th January, 2016 stands issued by the Registrar (Judicial & JB) of this Court to the following effect:
"Hon'ble the Chief Justice has been pleased to order in pursuance of circular No. 21/2015 issued vide F.No. 279/Misc. 142/2007-ITJ(Pt) by Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes dated 10.12.2015 as under:
"(1) It is to be specifically mentioned by the Income Tax Department while filing the appeal in the High Court that the tax effect exceeds Rs. 20,00,000/- except in the following matters:
(a) Where the Constitutional validity of the provisions of an Act or Rule are 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 the additional relates to undisclosed foreign assets/bank accounts.
2. The pending appeals where the tax effect does not exceed Rs. 20,00,000/- are directed to be withdrawn/not pressed."
2. It is not in dispute that the total tax factor is less than Rs. 20,00,000/- in each of these appeals and that they do not fall within anyone of the exceptions. As such, present appeals stand disposed of. Pending applications, if any, also stand disposed of.
