COMMISSIONER OF INCOME TAX PANCHKULA vs. JAGIR SINGH

Facts

The appellant, the Income Tax Department, Panchkula, filed an appeal before the High Court of Punjab and Haryana at Chandigarh. The appeal was against an order concerning Shri Jagir Singh (since deceased) through his legal heirs. The appeal was filed under the Income Tax Act, 1961. The Department sought to withdraw the present appeal. This request was made in light of Circular No. 9/2024 dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular revised the monetary limits for filing appeals by the department before the Income Tax Appellate Tribunal, High Courts, and the Supreme Court. The revised limits were intended to manage litigation. The learned counsel for the appellant submitted that the case did not fall within the exceptions provided in the circular.

Held

The High Court allowed the prayer for withdrawal of the present appeal. The Court noted that the appellant (Income Tax Department) submitted that the case did not fall within the exceptions of Circular No. 5/2024, as clarified by Circular No. 9/2024 dated 17.09.2024. The circular revised the monetary limits for filing appeals before the Income Tax Appellate Tribunal, High Courts, and the Supreme Court, with the purpose of managing litigation. The revised limits were to be applicable to all cases, including those relating to TDS/TCS under the Income-tax Act, 1961, with exceptions as per paragraphs 3.1 and 3.2 of Circular No. 5/2024. The decision to appeal or file SLPs/appeals was to be taken on merits, without regard to the tax effect and the monetary limits. The Court found no reason to disallow the withdrawal and accordingly, the appeal was dismissed as withdrawn. All pending applications were also disposed of as withdrawn.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 Whether the present appeal, filed by the Income Tax Department, should be permitted to be withdrawn in view of Circular No. 9/2024 dated 17.09.2024, which revised the monetary limits for filing appeals. (Question of law and fact, concerning the application of the circular). Assessee's Contention: The learned counsel for the respondent (assessee) prayed for the withdrawal of the present appeal, stating that the case does not fall within the exceptions of Circular No. 5/2024, which was further clarified by Circular No. 9/2024. The appellant (Income Tax Department) submitted that the appeal should be withdrawn as per the revised monetary limits stipulated in the circular. Revenue's Contention: The appellant (Income Tax Department) submitted that in terms of Circular No. 9/2024, the appeal should be withdrawn. The circular aimed to manage litigation by revising monetary limits for filing appeals. The department's counsel stated that the case did not fall within the exceptions mentioned in the circular.