CIT vs Gaurishankar

Heard the learned counsel for appellant.

The present appeal was listed before this Court on 4-1-2013 along with other income tax Appeals, wherein admittedly the tax effect is less than Rs. 10 lac. An objection was raised by learned counsel for respondents that in view of Circular dt. 9-2-2011 1 (2011) 51 DTR (St) 135), issued by CBDT, the appeal is not maintainable as the appeal cannot be filed before High Court in view of circular dt. 9-2-2011 where tax effect is less than Rs. 10 lac.

Learned counsel for Revenue submitted that Circular dt. 9-2-2011 is prospective and the same is not binding on the present appeal, as present appeal was filed before this Court earlier to 9-2-2011. She has also referred the order of Hon'ble apex Court in Commissionar of Income Tax Central-III Vs. Surya Herbal Ltd., wherein the Court granted liberty to Department to move the High Court pointing out that the circular dt. 9-2-2011, should not be applied ipso facto, particularly, when the matter has a cascading effect.

This Court, on 4-1-2013, observed that let the Department may examine such appeals where the tax effect is less than Rs. 10 lac and there is no cascading effect. The matter was again listed on 20-2-2013 and this Court observed that a committee be constituted by Chief CIT, to be headed by him to examine the cascading effect in such like matters. The Chief CIT constituted a committee consisting of ten officers, headed by Chief CIT (CCA), Jaipur, as Chairman, The Committee was consisting of following ten officers:

Shri Atulesh Jindal, Chief CIT (CCA), Jaipur Chairman

Shri Raj Kumar, Director General of IT (Inv.) Member Rajasthan, Jaipur

Shri V.S. Kothari, CIT, Jaipur-I, Jaipur Member

Shri Satish Sharma, CIT (Central), Jaipur Member

Shri Purushottam Kashyap, Addl. CIT (Hqrs). O/o Organizing the Chief CIT, Jaipur Secretary

Shri Rajesh Ojha, Dy. CIT (Tech), O/o the Chief CIT, Member Jaipur

Smt. Sheba Bhattacharya, Chief CIT, Jodhpur Member

Shri L.R. Singh, Chief CIT, Udaipur Member

Shri K.R. Meena, CIT, Jodhpur--I, Jodhpur Member

Shri A.K. Jain, CIT, Udaipur Member

The above Committee considered about forty matters on merits and opined that nine matters, including present one, as per list enclosed, will have no cascading effect.

The report of Committee has been placed on record, in DB IT Appeal No. 22 of 2011, yesterday.

Learned counsel for Revenue admits that as per report of Committee, there is no cascading effect in the present case.

There is no dispute that tax effect in the present matter is less than Rs. 10 lac, but appeal was filed before issuance of the Circular dt. 9-2-2011.

In these circumstances, we also considered the merits of the case.

We heard learned counsel for Revenue/appellant and after considering her submissions, we are of the view that questions formulated in the present case, are relating to question of facts and finding of fact in this regard by Tribunal is final. It is a settled law that income tax appeal can be admitted on substantial question of law, which in our view, is not involved in the present appeal.

Consequently, we find no merit in this appeal and the same is accordingly dismissed in limine.

While deciding the appeal, we have also kept in mind the report of the Committee, therefore, it is directed that this order will not be treated as precedent in other matters.

In view of above, IA No. 23687 of 2012 stands disposed of.