THE PRINCIPAL COMMISSIONER OF INCOME TAX, FARIDABAD vs. JEET SINGH

Facts

The Commissioner of Income Tax, Faridabad (the Revenue) filed an appeal before the High Court against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed in the context of Circular No. 9/2024 issued by the Central Board of Direct Taxes (CBDT) on 15.03.2024, which revised monetary limits for filing appeals by the department. The revised limits were effective from 17.09.2024. The Revenue's counsel submitted that the present appeal, filed after the effective date, did not fall within the exception clause of Circular No. 5/2024, which pertains to cases where appeals are to be decided on merits regardless of tax effect. Therefore, the Revenue prayed for withdrawal of the appeal.

Held

The High Court allowed the Revenue's prayer for withdrawal of the appeal. The Court noted that the appeal was filed after the effective date of Circular No. 9/2024, which revised the monetary limits for filing appeals. The Court found that the case did not fall within the exception clause of Circular No. 5/2024, which mandates that appeals be decided on merits irrespective of the tax effect. Consequently, the appeal was dismissed as withdrawn. All pending applications were also disposed of accordingly. The judgment does not discuss the merits of the original dispute or any specific IT Act provisions beyond the context of the circulars governing appeal filing.

Key Issues

1. Whether the present appeal, filed by the Revenue, should be allowed to be withdrawn in light of Circular No. 9/2024 issued by the CBDT, which revised monetary limits for filing appeals. Assessee's Contention: The judgment does not record any specific contentions from the assessee. The assessee is the respondent in this appeal before the High Court. Revenue's Contention: The Revenue's counsel submitted that the appeal was filed in terms of Circular No. 9/2024, which amended monetary limits for filing appeals before the High Court and Supreme Court. The revised limits are effective from 17.09.2024. The counsel argued that the present appeal, filed after this date, does not fall within the exception clause of Circular No. 5/2024. Therefore, the Revenue prayed for withdrawal of the appeal.