ASSISTANT COMMISSIONER OF INCOME TAX vs. VARDA PROJECTS (INDIA) PVT. LTD.

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TAXC/68/2025HC ChhattisgarhCGHC01009779202503 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 learned counsel for the Appellant, seeking disposal of the appeal in light of the Circular dated 17.09.2024, was fair and reasonable. The Court noted that the Circular No. 5/2024, as revised by the subsequent circular dated 17.09.2024, enhanced the monetary limit for filing appeals before the High Court to Rs. 2 crores. Paragraph 5 of the 17.09.2024 circular explicitly states that it shall apply to appeals to be filed henceforth and also to appeals pending before the High Courts, which may accordingly be withdrawn. Since the tax liability in the present case was less than Rs. 2 crores, the Court found it appropriate to dispose of the Tax Case in terms of the submissions and the circular. The operative direction was to dispose of the Tax Case.

What were the facts?

The Assistant Commissioner of Income Tax, Circle 1(1), Raipur (the Appellant) filed a Tax Case before the High Court of Chhattisgarh at Bilaspur against Varda Projects (India) Pvt. Ltd., Raipur (the Respondent). The appeal concerned assessment years not explicitly stated. The Appellant's counsel submitted that the Ministry of Finance had issued a new circular dated 17.09.2024, enhancing the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 crores. The tax liability in the present case was stated to be less than this enhanced limit. Therefore, the Appellant requested the appeal be disposed of finally in light of the circular.

What were the issues?

1. Whether the present appeal, with a tax effect less than Rs. 2 crores, is maintainable before the High Court in light of the CBDT Circular dated 17.09.2024? (Question of law) Assessee's Contention: The assessee (represented by the Appellant's counsel) argued that the tax liability is below the revised monetary limit of Rs. 2 crores for filing appeals before the High Court as per the Circular No. 5/2024 dated 15.03.2024, as amended by the Circular dated 17.09.2024. Therefore, the appeal should be disposed of finally. Revenue's Contention: The judgment does not record any specific arguments from the Revenue's side other than the Appellant's counsel's submission for disposal based on the circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1

2025:CGHC:30604-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 68 of 2025 Assistant Commissioner Of Income Tax Circle 1(1) Raipur (C.G.)

... Appellant versus Varda Projects (India) Pvt. Ltd. Raipur Pan- AACCV7195g

... 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 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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