Re: Review Pending in High Court on date of announcing the scheme

The Assessee won the matter in ITAT but lost the matter in High Court and filed a Review which too was dismissed. Then he filed a second Review on Ground that tax amount being below 50 lacs, dept should have withdrawn the Reference from the High Court, and the Order passed by the HC ought to be Recalled.

In S. C. Naregal v. CIT(2019)418 ITR 455/267Taxman563/311CTR 849 / 184 DTR 247 (SC) The High Court held that where a substantial question of law is involved, the mere fact that a monetary limit had been prescribed for filing appeals by the Department would not be a bar to deciding the appeal, and that even otherwise, this was an exceptional case where the Department was justified in filing the appeal, and proceeded to decide the appeal on the merits, answering the questions of law in favour of the Department, on appeal to the Supreme Court. Allowing the appeal the Court held that instruction No 5 of 2008 dt 15-5 2008 is applicable to pending matters, subject to two caveats provided in CIT v Surya Herbal Ltd (2013) 350 ITR 300 (SC). Followed DIT v. S.R.M. B. Dairy Farming (P) Ltd (2018) 400 ITR 9 (SC) The judgment of the High Court was set aside and the Department's appeals before the High Court treated as dismissed because of low tax effect, leaving the questions of law open.  In  CIT v. Meghalaya Steels Ltd. (2015) 377 ITR 112/279 CTR 189/124 DTR 33/234 Taxman 523 (SC) the court held that High Courts, being Courts of Record under Article 215, have the inherent power of review. There is nothing in section 260A(7) to restrict the applicability of the provisions of the CPC to S. 260A appeals.

The honourable High Court may  pass the order in favour of assessee.

 

---