2018 (7) TMI 591

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....atter of the decision of the CWT(Appeals). The Registry raised objection pointing out that 7 separate appeals should be filed and filing of one single appeal for 7 assessment years was not correct. Pursuant to the objection of the Registry, the revenue has filed 7 separate appeals for assessment years 2006-07 to 2012-13 in respect of both the assessees and these appeals are WTA Nos.31 to 37/Bang/2018 in the case of Mr. Vivek B. Chand and WTA Nos. 38 to 44/Bang/2018 in respect of Mr. Rajesh B. Chand. In view of the filing of separate appeals for each AY 2006-07 to 2012-13, being WTA No.31 to 37 /Bang/2018 in the case of Mr. Vivek B. Chand and WTA No.38 to 44/Bang/2018 in the case of Mr. Rajesh B. Chand, the appeals of the revenue in WTA Nos.15 & 16/Bang/2017 in respect of both these assessees are considered as superfluous and dismissed as such. 2. Cross Objections have been filed by both the assessees viz., CO Nos. 18 to 24/Bang/2018 in the case of Mr. Vivek B. Chand and CO Nos. 11 to 17/Bang/2018 in the case of Mr. Rajesh B. Chand against the very same orders of CWT(A) in respect of which appeals have been filed by the Revenue. 3. When these appeals were taken up for hearing,....

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.... dated 24.10.2005 whereby the CBDT fixed the monetary limit for filing appeals before the Tribunal at Rs. 2 lakhs. These Board's instruction were issued in partial modification of Instruction No.1979 dated 27.3.2000 and Instruction No.1985 dated 29.6.2000. Instruction No.1979 dated 27.3.2000 clearly lays down that those instructions fixing the monetary limit for filing appeals before the various appellate forums will apply to litigants under other director taxes also viz., wealth-tax, gift-tax, estate duty, etc. As per Instruction No.1979 dated 27.3.2000, the monetary limit for filing appeals before the Tribunal was fixed at Rs. 1 lakh. Instruction No.2/2005 dated 24.10.2005 in para 4 clearly lays down as follows:- "4. Subject to the paragraphs 2 and 3 above, the Instruction No. 1979 dated 27.3.2000 as clarified subsequently in Instruction No. 1985 dated 29.6.2000, will continue to govern the decision for filing of departmental appeals." 5. It is thus clear that as far as appeals to be filed by the Revenue under the Wealth Tax Act, 1957 are concerned, the monetary limits for filing appeals before the Tribunal will Rs. 2 lakhs as per Instruction No.2 / 2005 dated 24.10.2....

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....5. Therefore the monetary limit of Rs. 2 lacs for filing appeals under the Wealth Tax Act, 1957 before the Tribunal as laid down in Instruction No.2/2005 dated 24.10.2005 will be applicable for appeals filed after 24.10.2005. In that view of the matter the monetary limit for filing appeals by the Revenue are not satisfied and therefore the appeals by the revenue are not maintainable as they have contrary to the Board's instructions. The appeals are therefore liable to be dismissed as not maintainable. 9. Besides the above, the stand of the department is that since the order of CIT(Appeals) is a common order, the cumulative tax effect should be seen. On this aspect, however, we find that in Instruction No.1979 dated 27.3.2000, it has been made clear that even in group cases cumulative tax effect should not be taken into consideration. The relevant para of the Instruction reads as follows:- "2. .................................. The new monetary limits would apply with reference to each case taken singly. In other words, in group cases, each case should individually satisfy the new monetary limits. The working out of monetary limits will therefore not take into c....

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....the monetary limit specified in para 3. No appeal shall be filed in respect of assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In other words, henceforth, appeals can be filed only with reference to the tax effect in the relevant assessment year. However, in case of a composite order of any High Court or appellate authority, which involves more than one assessment year and common issues in more than one assessment year, appeal shall be filed in respect of all such assessment years even if the "tax effect" is less than the prescribed of the year(s) in which the "tax effect" exceeds the monetary limit prescribed. In case where a composite order/judgment involves more than one assessee, each assessee shall be dealt with separately." 17. In case of an assessee, where common order is passed in respect of more than one assessment year, which involves common issues even if in one of the assessment years the tax effect is more than Rs. 10 lakhs, irrespective of the fact that in respect of other assessment years which is part of the common order, the tax effect is less than Rs. 10 lakhs, the revenue is entitled to file appeal ev....