ASSISTANT COMMISSIONER OF INCOME TAX vs. M/S SOUTH EASTERN COALFIELDS LIMITED

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TAXC/8/2020HC ChhattisgarhCGHC01006548202003 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 submission made by the learned counsel for the appellant (Assistant Commissioner of Income Tax) is fair and reasonable. The Court noted that the Government of India, Ministry of Finance, had issued a circular dated September 17, 2024, which revised the monetary limits for filing Income Tax Appeals before the High Court to Rs. 2 Crores. As the tax liability in the present case was stated to be less than Rs. 2 Crores, and in light of paragraph 5 of the said circular which states that it shall apply to SLPs/Appeals pending before High Courts which may accordingly be withdrawn, the Tax Case was disposed of. The reasoning is based on the department's own policy to withdraw appeals below the enhanced monetary threshold. The ratio is that appeals filed by the revenue before the High Court, where the tax effect is below the revised monetary limit specified in a CBDT circular, should be withdrawn or disposed of accordingly.

What were the facts?

The appellant, Assistant Commissioner of Income Tax, Circle-1, Bilaspur, filed a Tax Case before the High Court against M/s South Eastern Coalfields Limited. The appeal was filed challenging an order or action, though the specific order and the assessment year(s) are not detailed. The amount in dispute is also not explicitly stated, but it is mentioned that the tax liability of the assessee is less than Rs. 2 Crores. The procedural history relevant to the disposal of the case is the issuance of a new circular by the Government of India, Ministry of Finance, on September 17, 2024, which enhanced the monetary limits for filing Income Tax Appeals before the High Court.

What were the issues?

1. Whether the present appeal, where the tax liability is less than Rs. 2 Crores, should be disposed of in light of the new circular dated September 17, 2024, enhancing the monetary limit for filing appeals before the High Court to Rs. 2 Crores? Assessee's Contention: The assessee, represented by Shri Ajay Kumrani, argued that the Government of India, Ministry of Finance, has issued a new circular dated September 17, 2024, which enhances the monetary limit for filing Income Tax Appeals by the Department 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 light of this circular. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding this issue.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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2025:CGHC:30603-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No.8 of 2020 Assistant Commissioner Of Income Tax Circle-1, Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh

... Appellant versus M/s South Eastern Coalfields Limited Seepat Road, Bilaspur Chhattisgarh.

... Respondent For Appellant : Shri Ajay Kumrani, Advocate. For Respondent : Shri Mohit Kumar, Advocate. 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 NEELIMA VISHNU PRIYA Date: 2025.07.07 10:49:28 +0530

2 liability of the assessee is less than Rs.2 Crores, therefore, in the light 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.

3

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. 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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