2019 (1) TMI 1476 - HC - Income Tax

High Court declines Revenue's appeal, stresses Tribunal consideration first

The High Court considered an appeal by Revenue from an order of remand for the year 2002-2003, referencing a previous judgment. The current appeal was ... Maintainability of appeal - monetary limit - Held that:- On the litigation policy, we notice the judgment of another Division Bench of this Court in Commissioner of Income Tax v. Smt.Vasantha Anirudhan [2018 (1) TMI 902 - KERALA HIGH COURT]. When the monetary limit is computed, the overall demand made by the Revenue in a group of appeals, where the question raised is common, has to be considered. Merely because in each of the appeals the limit is below that specified in the litigation policy, the individual appeals cannot be rejected. What has to be looked at is the total demand in so far as the adjudication with respect to an issue. Issues:1. Appeal filed by Revenue from order of remand for the year 2002-2003.2. Contention regarding Revenue's appeal based on litigation policy.3. Interpretation of litigation policy based on previous judgment.Analysis:1. The High Court considered an appeal filed by the Revenue from an order of remand for the year 2002-2003. The assessee, represented by Sri. Anil D. Nair, referred to a previous judgment in I.T.A. Nos.24 & 28 of 2012 related to assessment years 2001-2002 and 2002-2003. A remand was made in the previous case, keeping all issues open. The current appeal was declined to be answered, emphasizing the need for consideration by the Tribunal first.2. The Court addressed the contention raised by the assessee regarding the Revenue's appeal based on the litigation policy. The assessee argued that the Revenue could not file an appeal due to the policy prohibiting appeals below a certain tax limit. However, the assessee was not heard before the Tribunal rejected these contentions. It was highlighted that the consideration should first focus on the litigation policy, as per the specific ground taken in the previous case.3. Delving into the interpretation of the litigation policy, the Court referred to a judgment in Commissioner of Income Tax v. Smt. Vasantha Anirudhan [(2018) 401 ITR 279 (Ker)]. It was noted that when calculating the monetary limit, the total demand by the Revenue in a group of appeals with common issues must be taken into account. Merely because individual appeals have limits below the specified policy threshold does not warrant rejection. The Court emphasized assessing the total demand concerning the issue in question and remanded the matter with this observation.