THE COMMISSIONER OF INCOME TAX EXEMPTIONS CHANDIGARH vs. S D EDUCATIONAL SOCIETY

Facts

The Commissioner of Income Tax (Exemptions)(E), Chandigarh (the revenue) filed an appeal before the High Court of Punjab and Haryana at Chandigarh. The appeal was against an order passed by the Income Tax Appellate Tribunal (ITAT). The respondent in the appeal was S D Educational Society, Hisar. The appeal was filed in the High Court in the year 2024. The specific assessment year(s) and the amount in dispute are not recorded in the judgment. The procedural history leading to the High Court appeal is not detailed, other than it being an appeal against an ITAT order.

Held

The High Court allowed the prayer for withdrawal of the appeal. The court noted the submission by the revenue's counsel regarding CBDT Circular No. 9/2024, which revised the monetary limits for filing appeals. The circular, effective from 17.09.2024, enhanced the threshold for appeals before the ITAT, High Court, and Supreme Court. The revenue argued that since the present case did not fall under any exception to the circular, it should be allowed to withdraw the appeal. The court accepted this submission and accordingly dismissed the appeal as withdrawn. The ratio decidendi is that appeals can be withdrawn by the revenue if they no longer meet the revised monetary limits prescribed by the CBDT, provided they do not fall under any specified exceptions. The operative direction was to dismiss the appeal as withdrawn.

Key Issues

1. Whether the present appeal, filed by the revenue, is maintainable in light of the revised monetary limits for filing appeals as per CBDT Circular No. 9/2024 dated 17.09.2024? The revenue, through its counsel, submitted that in terms of CBDT Circular No. 9/2024, the monetary limits for filing appeals before the ITAT, High Court, and Supreme Court have been enhanced. The circular amends Circular No. 5/2024 and sets new monetary limits: Rs. 60 lakh before the ITAT, Rs. 2 crore before the High Court, and Rs. 5 crore before the Supreme Court. These limits are applicable to appeals to be filed and also to pending appeals directed to be withdrawn. The revenue contended that as the present case does not fall within any exception clause of Circular No. 5/2024, it should be permitted to withdraw the appeal. The assessee's contentions are not recorded in the judgment.