THE PR COMMISSIONER OF INCOME TAX ( CENTRAL ) , LUDHIANA vs. M/S KALANEEDHI JEWELLERS LLP

Facts

This case involves an appeal by the Revenue (Commissioner of Income Tax) against M/s Kalaneedhi Jewellers LLP. The appeal was filed before the High Court of Punjab and Haryana at Chandigarh. The Revenue's counsel submitted that the appeal was being withdrawn in light of Circular No. 9/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes (CBDT). This circular revises the monetary limits for filing appeals by the department before various authorities, including the Income Tax Appellate Tribunal (ITAT), High Court, and Supreme Court. The revised monetary limit for appeals before the High Court is Rs. 2 crore. The Revenue contended that the present appeal, due to the revised monetary limits, should be withdrawn.

Held

The Tribunal allowed the prayer for withdrawal of the appeal. The reasoning was based on the submission made by the Revenue's counsel regarding CBDT Circular No. 9/2024 dated 17.09.2024. This circular revised the monetary limits for filing appeals by the department. The revised limit for appeals before the High Court was set at Rs. 2 crore. The Revenue contended that the present appeal did not fall within the exception clause of Circular No. 5/2024, which pertains to cases not falling within the revised monetary limits. Consequently, the Revenue prayed for the withdrawal of the appeal. The Tribunal accepted this prayer. The operative direction was to allow the withdrawal of the appeal and dismiss it as withdrawn. All pending applications were also disposed of accordingly. No specific issue regarding the merits of the case was decided.

Key Issues

1. Whether the present appeal, filed by the Revenue, should be withdrawn in light of CBDT Circular No. 9/2024, which revises the monetary limits for filing appeals before the High Court to Rs. 2 crore. Assessee's Contentions: The assessee's counsel did not present any arguments as the Revenue sought withdrawal of the appeal. The judgment notes that the assessee's counsel was present but the appeal was being decided based on the Revenue's submission regarding the circular. Revenue's Contentions: The Revenue's counsel submitted that the appeal should be withdrawn in terms of Circular No. 9/2024 dated 17.09.2024. This circular revises the monetary limits for filing appeals by the department. The revised limit for appeals before the High Court is Rs. 2 crore. The Revenue argued that the present appeal falls within the exception clause of Circular No. 5/2024, which allows for withdrawal of appeals if they do not fall within the revised monetary limits, and therefore, prayed for withdrawal.