COMMISSIONER OF INCOME TAX GURGAON vs. PRABHU DAYAL MEMORIAL RELIGIOUS & EDUCATIONAL ASSOCIATION

Facts

The appeal was filed by the Principal Commissioner of Income Tax (Central), Gurgaon against Prabhu Dayaal Memorial Religious and Educational Association. The assessment year(s) are not specified. The appeal challenges an order or action related to the filing of appeals before the Income Tax Appellate Tribunal (ITAT), High Court, and Supreme Court. The procedural history involves the issuance of Circular No. 5/2024 by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, which enhanced the monetary limits for filing appeals. This circular, effective from 17.09.2024, applies to pending appeals and directs their withdrawal if they do not meet the revised criteria, unless they fall under specific exceptions.

Held

The High Court allowed the prayer for withdrawal of the appeal. The Court noted that Circular No. 5/2024, effective from 17.09.2024, has enhanced the monetary limits for filing appeals before the ITAT, High Court, and Supreme Court. The Court observed that the present case does not fall within the exception clauses of the circular, which allow for appeals to be decided on merits irrespective of tax effect. Consequently, the Court directed that the appeal be dismissed as withdrawn. All pending miscellaneous applications were also disposed of. The principle established is that appeals that do not meet the revised monetary thresholds, and do not fall under any exceptions, are to be withdrawn and dismissed.

Key Issues

1. Whether the present appeal, filed by the revenue, should be withdrawn in light of the revised monetary limits for filing appeals as per Circular No. 5/2024 dated 17.09.2024, given that the tax effect does not fall within the exception clauses? Assessee's Contention: The learned counsel for the respondent (assessee) submitted that in terms of Circular No. 5/2024, the monetary limits for filing appeals have been enhanced. The counsel prayed for the withdrawal of the present appeal as it does not fall within the exception clause of the said circular. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the merits of the appeal. The revenue's counsel submitted that the appeal should be withdrawn in view of the Circular.