INCOME TAX ACT, 1961

Section 260A

Appeal (High Court) - Maintainability - Bar of monetary limits whether applicable to writ appeals as well -

Aggrieved by order passed by Single Judge in allowing writ petition in part and setting aside order relating to denial of interest, revenue filed instant appeal. Assessee contended that it was not necessary for Court to get into merits of appeal in view of Circular No. 5 of 2019, dated 5-2-2019 with regard to filling of Income Tax appeal by Department beyond a specified monetary limit. Revenue's counsel contended that said Circular clearly indicates that limits would not be applicable to writ matters. Held: There was no ground to interfere with order of Single Judge because entire tax effect in instant writ appeal was less than a sum of Rs. 2 Lakhs. It was too minimal an amount to be interfered with by the Division Bench of Court. Contention of Revenue was that monetary limits are not applicable to writ matters in terms of the Circular, dated 5-2-2019. Court did not accept said submission, as writ petition was filed by assessee because no remedy is provided under the Income Tax Act to challenge the said order under provisions of the Income Tax Act. Only because an alternative remedy is not provided and the assessee was compelled to file a writ petition, the Revenue cannot take advantage of it.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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