HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 637 / 2011 CIT Jaipur ----Appellant Versus M/S Bhandari Jewellers ----Respondent For Appellant(s) : Mr. Anuroop Singhi For Respondent(s) : Mr. Sanjay Jhanwar HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE VIJAY KUMAR VYAS Judgment 15/05/2017 BY COURT: 1. Instant appeal is directed against order of Income Tax Appellate Tribunal and indisputably tax effect as brought to our notice, is less than Rs.20 lac. 2. Circular No.21/2015 has been issued by Central Board of Direct Taxes dated 10.12.2015 in exercise of its power u/sec. 268A (1) of Income-tax Act 1961 in supersession of Boards instruction No.5/2014 dt.10.7.2014 regularising monetary limits for filing appeals by Revenue before Tribunal, High Courts and Apex Court with object for reducing litigation. Relevant para nos.3, 8, 9 and 10 reads ad infra :- 3. Henceforth, appeals/SLPs shall not be filed in cases where tax effect does not exceed monetary limits given hereunder :- (2 of 3) [ITA-637/2011] S. Appeals in Income-tax matters Monetary Limit (in No. Rs.) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that appeal should not be filed merely because tax effect in case exceeds monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of case. 4. xxx xxx xxx 5. xxx xxx xxx 6. xxx xxx xxx 7. xxx xxx xxx 8. Adverse judgments relating to following issues should be contested on merits notwithstanding that tax effect entailed is less than monetary limits specified in para 3 above or there is no tax effect: (a) Where Constitutional validity of provisions of 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 case has been accepted by Department, or (d) Where addition relates to undisclosed foreign assets/bank accounts. 9. monetary limits specified in para 3 above shall not apply to writ matters and direct tax matters other than Income tax. Filing of appeals in other Direct tax matters shall continue to be governed by relevant provisions of statute & rules. Further, filing of appeal in cases of Income Tax, where tax effect is not quantifiable or not involved, such as case of registration of trusts or institutions under section 12 of IT Act, 1961, shall not be governed by limits specified in para 3 above and decision to file appeal in such cases may be taken on merits of particular case. 10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before Supreme Court will be governed by instructions (3 of 3) [ITA-637/2011] on this subject, operative at time when such appeal was filed. 3. extract of paragraphs referred to supra, clearly indicates that limits specified in para 3 may not apply to certain exceptions specified in para 8, at same time para nos.9 and 10 of Circular if read conjointly, clearly envisages that present instructions will apply retrospectively to all pending appeals and appeals to be filed henceforth in High Courts/Tribunals, subject to exceptions where tax effect even if is less than Rs.20 lac, can be preferred in High Courts. 4. Taking note of CBDT Circular dt. 10/12/2015 and tax effect which indisputably in instant case is less than Rs.20 lac, much less than what has been prescribed for filing appeal before High Courts, deserves to be dismissed as not pressed. However, it is made clear that substantial questions of law raised in instant appeals, if any, are left open to be examined in appropriate proceeding, if arises in future. At same time we consider it appropriate to observe that if appeal falls in any of exceptions as referred to in Circular dt. 10/12/2015, Revenue will be at liberty to move application for recalling of order if so advised. 5. Accordingly, in light of CBDT Circular dated 10.12.2015 appeal stands dismissed as not pressed. (VIJAY KUMAR VYAS),J. (K.S. JHAVERI),J. A.Sharma/103 CIT, Jaipur v. Bhandari Jeweller