INCOME TAX ACT, 1961

Section 260A

Appeal (High Court) - Maintainability - Lower tax effect -

Revenue was aggrieved by order of Tribunal, by which Tribunal allowed the withdrawal of the appeal before it on the ground of CBDT Circular No. 21/2015, dated 10-12-2015 as the tax effect involved was less than Rs. 10,00,000. Case of revenue was that reassessment was made in case of the assessee based on some audit objection raised by the audit party of the Income Tax Department, and therefore exception in CBDT Circular No. 21/2015, for withdrawal of appeal, was attracted and withdrawal of the appeal could not be ordered by Tribunal. Held: Revenue stake in instant case was admittedly much below Rs. 10,00,000, and for High Court purposes, as per the latest CBDT Circular, the said limit is now Rs.One Crore. Revenue could not produce any such audit objection for perusal of the Tribunal/ Court. Revenue only submitted that the office file noting showed that the appeal was preferred before Tribunal on the basis of some audit objection. Tribunal earlier permitted withdrawal of the appeal by revenue, as revenue stake was below Rs. 10,00,000 which factual position was not disputed. The mere existence of the audit objection for relevant assessment year did not change revenue stake at all. Appellant revenue should appreciate and understand the letter and spirit of the CBDT Circular in the litigation policy issued by it, to withdraw, and not to press the appeal on merits, before the concerned forums, viz., Tribunal or High Court, if revenue stake or tax effect is less than the prescribed limit.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2003-04

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