DEPUTY COMMISSIONER OF INCOME TAX vs. AGRAWAL GLOBAL INFRATECH PVT. LTD.

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TAXC/122/2025HC ChhattisgarhCGHC01015473202503 July 2025Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE DEEPAK KUMAR TIWARI3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the prayer made by the Revenue's counsel was fair and reasonable. In view of the submission that the monetary limit (tax liability) in the present case is less than Rs.2 Crores and in light of Para-5 of the Circular dated 17.09.2024, the instant Tax Case stands disposed of. The Circular clarifies that it shall apply to SLPs/Appeals to be filed henceforth and also to SLPs/Appeals pending before Supreme Courts/High Courts/Tribunal, which may accordingly be withdrawn. The Court did not decide the merits of the appeal but disposed of it based on the revised monetary limits and the circular.

What were the facts?

The Revenue, represented by the Deputy Commissioner of Income Tax, filed a Tax Case (Appeal) before the High Court of Chhattisgarh at Bilaspur. The appeal was against Agrawal Global Infratech Pvt. Ltd. The Revenue's counsel submitted that a new circular dated 17.09.2024 issued by the Ministry of Finance has enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs.2 crores. The counsel stated that the tax liability in the present case is less than this enhanced limit and therefore requested the appeal to be disposed of finally in light of the circular. The Court found this prayer to be fair and reasonable.

What were the issues?

1. Whether the present Tax Case Appeal filed by the Revenue before the High Court should be disposed of in light of the revised monetary limits for filing appeals as per the Circular dated 17.09.2024, where the tax effect is less than Rs.2 crores? Assessee's Contention: The assessee is not recorded as having made any specific contention. The appeal was disposed of based on the Revenue's submission and the circular. Revenue's Contention: The Revenue contended 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. Since the tax liability in the present case is less than Rs.2 crores, the appeal may be disposed of finally in accordance with this circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1

2025:CGHC:30602-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 122 of 2025 Deputy Commissioner Of Income Tax Aaykar Bhavan, Civil Lines, Raipur Chhattisgarh - 492001

... Appellant

versus Agrawal Global Infratech Pvt. Ltd. C-2/101, Aishwarya Chambers, G.E. Road, Telibandha, Raipur Chhattisgarh 492001 Pan AAPCA0850L

... Respondent For Appellant : Shri Vijay Chawla and Shri Ajay Kumrani, Advocates. Hon'ble Shri Sanjay K. Agrawal and Hon'ble Shri Deepak Kumar Tiwari, JJ. Judgment On Board (04.07.2025) Sanjay K. Agrawal, J.

1.

When the case is taken for hearing, learned counsel for the Appellant submits 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 been enhanced to Rs.2 crores whereas, in the present case, the tax liability of the assessee is less than Rs.2 Crores, therefore, in the light NEELIMA VISHNU PRIYA Date: 2025.07.07 10:49:29 +0530

2 of the 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 the circular dated 17.09.2024 are quoted below:- “1. Reference is invited to Circular No 5/2024 (F.No.279/Misc.142/2007-ITJ(Pt) dated15.03.2024 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 to 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 Appellalte Tribunal 60 lacs

2.

Before High Court 2 crores

3.

Before Supreme Court 5 crores

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 decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an Appeal.

5.

The modifications 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.

3 It shall also apply to the SLPs/ Appeals pending before Supreme Courts/High Courts/Tribunal, which may accordingly be withdrawn.

6.

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

7.

This issues under section 268A of the Income-tax Act, 1961. 8. Hindi version will follow.”

4.

In view of the aforesaid submissions of learned counsel for the Appellant where monetary limit (tax liability) in the present case is less than Rs.2 Crores and in the light of aforesaid circular (Para-5) dated 17.09.2024, the instant Tax Case stands disposed of. (Sanjay K. Agrawal) (Deepak Kumar Tiwari )

Judge Judge Priya

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