THE COMMISSIONER OF INCOME TAX vs. M/S HRY. WAREHOUSING CORP.

Facts

The case involves an appeal filed by the Income Tax Department against M/s Haryan Warehousing Corporation, Panchkula. The appeal was filed before the High Court of Punjab and Haryana at Chandigarh. The primary context of the appeal relates to a Circular No. 5/2024, subsequently amended by Circular No. 9/2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. These circulars revised the monetary limits for filing appeals by the department before various judicial forums, including the Income Tax Appellate Tribunal, High Courts, and the Supreme Court. The revised monetary limits for appeals before the High Court were set at Rs. 2 crore. The present appeal was filed by the department.

Held

The Tribunal noted that the appellant (Income Tax Department) submitted that in terms of Circular No. 9/2024 dated 17.09.2024, the monetary limits for filing appeals have been revised. The appellant further submitted that the present case does not fall within the exceptions provided in the circular. Consequently, the learned counsel for the appellant prayed for the withdrawal of the present appeal. The Tribunal allowed this prayer. The appeal was accordingly dismissed as withdrawn. All pending applications were also disposed of as withdrawn.

Key Issues

1. Whether the present appeal, filed by the Income Tax Department, is maintainable in light of the revised monetary limits prescribed by Circular No. 9/2024 dated 17.09.2024. The assessee argued that the appeal should be withdrawn as it does not fall within the exceptions mentioned in the circular and the tax effect is below the revised monetary limit. The assessee relied on Circular No. 9/2024. The revenue did not record any argument against the withdrawal of the appeal.