DEPUTY COMMISSIONER INCOME TAX OFFICER 1(1) vs. M/S SHANNO BUSINESS INDIA PVT. LTD.

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TAXC/25/2025HC ChhattisgarhCGHC01001645202513 May 2026Author: HON'BLE SHRI JUSTICE PARTH PRATEEM SAHU,HON'BLE SHRI JUSTICE SACHIN SINGH RAJPUT4 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the prayer made by the learned counsel for the appellant was fair and reasonable. The judgment quotes relevant paragraphs from the circular dated 17.09.2024, which states that the monetary limit for filing appeals before the High Court has been revised to Rs. 2 crores and that this modification shall come into effect from the date of issue of the circular and shall also apply to pending appeals, which may accordingly be withdrawn. In view of the submission that the tax liability involved is less than the prescribed monetary limit of Rs. 2 crores, the present tax case was disposed of in light of the circular dated 17.09.2024. The operative direction is that the appeal is disposed of. No issue was expressly left undecided.

What were the facts?

The appellant, Deputy Commissioner Income Tax Officer 1(1) Bhilai, filed an appeal before the High Court of Chhattisgarh at Bilaspur against M/s Shanno Business India Pvt. Ltd. The assessment year(s) are not specified. The appeal challenges an order or action that is not detailed in the judgment. The amount in dispute is not explicitly stated but is implied to be less than Rs. 2 crores. The procedural history involves the appellant's counsel submitting that a new circular dated 17.09.2024 has enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 crores, and since the tax liability in this case is below this limit, the appeal may be disposed of. The respondent was not represented.

What were the issues?

1. Whether the present appeal, involving a tax liability less than Rs. 2 crores, should be withdrawn or disposed of in light of the new circular dated 17.09.2024 issued by the Government of India, Ministry of Finance, which revises the monetary limits for filing Income Tax Appeals before the High Court. Assessee's Contention: The learned counsel for the appellant submitted that a new circular dated 17.09.2024 has been issued by the Government of India, Ministry of Finance, enhancing the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 crores. As the tax liability in the present case is less than Rs. 2 crores, the appeal may be disposed of finally in light of this circular. Revenue's Contention: No arguments were recorded for the revenue.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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2026:CGHC:22832-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 25 of 2025 Deputy Commissioner Income Tax Officer 1(1) Bhilai (C.G.).

... Appellant versus M/s Shanno Business India Pvt. Ltd. 402, 3rd Floor, Rajiv Gandhi Complex Kutchery Chowk, Raipur Chhattisgarh, Pan - Aaics6905k

... Respondent For Applicant : Mr. Ajay Kumrani, Advocate For Respondent : None Division Bench Hon'ble Shri Justice

Parth Prateem Sahu &

Hon’ble Shri Justice Sachin Singh Rajput Judgment On Board 14.05.2026 Parth Prateem Sahu, J

1.

When the case is taken up for hearing, learned counsel for appellant would submit that the Government of India, Ministry of Finance has issued a new circular dated 17.09.2024, in which monetary limits for filing Income Tax Appeals by the department before the High Court has 2 been enhanced to Rs. 2 crores, whereas in the present case the tax liability of assess is less then Rs. 2 crores. Therefore, in light of aforesaid circular dated 17.09.2024, the present appeal may be disposed of finally.

2.

The said prayer appears to be fair and reasonable.

3.

For ready reference, relevant paragraphs of said circular dated 17.09.2024 is quoted herein below:

“1. Reference is invited to Circular No. 5/2024 (F.No. 279/Misc. 142/2007- ITJ (Pt)) dated 15.03.2024 of Central Board of Direct Taxes (the Board) vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLP/appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said circular.

2.

As a step towards management of litigation, it has been decided by the Board of revise the monetary limits for filing of appeals in Income-tax cases as stated in Para 4.1 of the aforementioned circular as follows:- S.No. Appeals/SLPs in Income-Tax matters Monetary Limit(Tax effect in Rs.)

1.

Before Income Tax Appellate Tribunal 60 Lakhs

2.

Before High Court 2 Crore

3.

Before Supreme Court 5Crore

3

3.

Monetary limits given in paragraph 2 above with regard to filing appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income tax Act, 1961 with exceptions as per paras 3.1 and 3.2 of Circular No. 5/2024 dated 15.03.2024, where the decision to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits.

4.

It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decide don merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainly to taxpayers on their Income-tax assessments while taking a decision regarding filing an appeal.

5.

The modification shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/Hcs/Tribunal. It shall also apply to the SLPs/appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn.

6.

The above may be brought to the notice of all concerned.

7.

This issue under Section 268A of the Income-Tax Act, 1961. 8. Hindi Version will follow.”

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4.

In view of the submission made by learned counsel for the appellant that, in the instant case the tax liability involved is less then the monetary limit fixed i.e. Rs. 2 Crores, hence the present tax case is disposed of in light of circular issued on 17.09.2024. Certified copy as per rules. (Parth Prateem Sahu) (Sachin Singh Rajput) Judge Judge Alfiza ALFIZA BAIG ALFIZA BAIG Date: 2026.05.15 14:52:31 +0530

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