PCIT Vs Axis AD Print Media (India) Ltd. (Bombay High Court)
The Bombay High Court considered four income tax appeals in which the assessees contended that the tax effect in each appeal was below ₹50,00,000 and that the appeals, having been instituted before 28 August 2018, were liable to be dismissed in view of CBDT Circular No. 21 of 2015 dated 10 December 2015 and CBDT Circular No. 3 of 2018 dated 11 July 2018. The Revenue opposed the contention, submitting that when the appeals were filed, the applicable monetary limit under Circular No. 21 of 2015 was ₹20,00,000 and that Circular No. 3 of 2018 had subsequently been modified by a letter dated 20 August 2018.
The Revenue argued that, on a combined reading of the Circular dated 11 July 2018 and the amendment dated 20 August 2018, appeals involving additions based on information received from external law enforcement agencies such as the CBI, ED, DRI, SFIO and the Directorate General of GST Intelligence (DGGI) could be filed and pursued on merits irrespective of the monetary limit. It was further contended that any contrary interpretation would disadvantage appeals filed within limitation as compared to delayed appeals.
The Court examined the relevant CBDT circulars and noted that all four appeals were filed between April and August 2018 with tax effects ranging from ₹16.80 lakh to ₹29.92 lakh. At the time of filing, Circular No. 21 of 2015 prescribed a monetary limit of ₹20 lakh for High Court appeals, and it was undisputed that the appeals did not fall within any of the exceptions contained in that circular.
