The Calcutta High Court burdened the Tax Department with the cost of Rs.50,000 for filing belated appeal where tax effect was less than Rs.1 Crore.
The revenue filed the appeal against the order passed by the ITAT which involves the tax effect below Rs. 1 Crore, which was filed along with the application for the condonation of the delay of 638 days.
A Circular No. 17/2019 F. No.279/Misc. 142/2007-ITJ (Pt.) was issued by Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Judicial Section dated August 8, 2019. It prescribed a minimum limit of one crore for filing or pursuing the appeals before the High Court. Present appeal was filed in this Court on December 1, 2020 i.e. more than one year after issuance of the circular.
The division bench of Justices Aniruddha Roy and Rajesh Bindal held that the department deserves to be burdened with a cost of 50,000/- on the grounds that despite circulars issued by CBDT, belated appeal was filed where tax effect is merely Rs.20,98,318. Prior that circular had been issued on July 11, 2018 prescribing a limit of Rs.50 lakhs for filing appeals before this Court. Even that was also violated.
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