PR COMMISSIONER INCOME TAX vs. ORANGE BUSINESS SERVICES INDIA SOLUTIONS PVT LTD

Facts

The appeal was filed by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT). The present case concerns the withdrawal of appeals by the department before the Supreme Court and High Courts, as per Circular No. 9/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes (CBDT). This circular revises monetary limits for filing appeals to manage litigation. The revised limits are Rs. 60 lakh for appeals before the ITAT, Rs. 2 crore before the High Court, and Rs. 5 crore before the Supreme Court. These limits are applicable to all cases under the Income-tax Act, 1961, including TDS/TCS matters, with exceptions as per paragraphs 3.1 and 3.2 of Circular No. 5/2024.

Held

The Tribunal allowed the prayer for withdrawal of the appeal. The court noted that the revised monetary limits for filing appeals came into effect from 17.09.2024, the date of issuance of Circular No. 9/2024. These limits apply to appeals to be filed before the Supreme Court, High Court, and Tribunal, and also to appeals pending before these authorities. Since the present case does not fall within the exception clause of Circular No. 5/2024, the Revenue's counsel sought withdrawal of the appeal. Accordingly, the appeal was dismissed as withdrawn, and all pending applications were disposed of.

Key Issues

1. Whether the revised monetary limits for filing appeals, as per Circular No. 9/2024 dated 17.09.2024, are applicable to the present appeal. Assessee's Contention: The learned counsel for the assessee prays for the withdrawal of the present appeal, stating that the case does not fall within the exception clause of Circular No. 5/2024, and therefore, the revised monetary limits are applicable. The Revenue has not recorded any specific contention in the judgment.