THE PR. COMMISSIONER OF INCOME TAX vs. SHIVALI UDYOG (I) PRIVATE LIMITED

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TAXC/197/2023HC ChhattisgarhCGHC01036387202309 February 2025Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE SANJAY KUMAR JAISWAL3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the submission made by the learned counsel for the appellant (Principal Commissioner of Income Tax) was fair and reasonable. The Court noted that the monetary limit for filing appeals before the High Court had been enhanced to Rs. 2 Crores by the CBDT Circular dated September 17, 2024. Since the tax liability in the present case was less than this enhanced limit, and in light of paragraph 5 of the said circular which allows for the withdrawal of pending appeals, the Court disposed of the Tax Case. The operative direction was to dispose of the appeal finally based on the circular.

What were the facts?

The appellant, the Principal Commissioner of Income Tax, Raipur-1, challenged an order before the Chhattisgarh High Court. The respondent is Shivali Udyog (I) Private Limited. The appeal was filed for an unspecified assessment year. The appeal was listed for hearing on February 10, 2025. The appellant's counsel submitted that a new circular dated September 17, 2024, issued by the Ministry of Finance, enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. The appellant stated that the tax liability in the present case was less than this enhanced limit and 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 below the enhanced monetary limit of Rs. 2 Crores stipulated in the CBDT Circular dated September 17, 2024, should be disposed of finally? (Question of law, relying on Section 268A of the Income-tax Act, 1961). Assessee's Contention: The assessee (appellant in this case) argued that the new circular dated September 17, 2024, which raises the monetary limit for filing appeals before the High Court to Rs. 2 Crores, should be applied. Since the tax liability in the present case is less than Rs. 2 Crores, the appeal should be finally disposed of as per paragraph 5 of the circular, which states that pending appeals can be withdrawn. Revenue's Contention: No arguments were recorded for the revenue (respondent in this case) as they were represented by 'None'.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1

2025:CGHC:7268-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 197 of 2023 • The Pr. Commissioner Of Income Tax Raipur-1, District Raipur, Chhattisgarh.

... Appellant versus • Shivali Udyog (I) Private Limited Plot No. 324, Sector-D Urla Industrial Area, Raipur, Chhattisgarh, 492001. ... Respondent For Appellant : Mr. Amit Chaudhari, Advocate along with Mr. Vijay Chawla, Advocate For Respondent : None. (Division Bench) Hon'ble Shri Justice Sanjay K. Agrawal Hon'ble Shri Justice Sanjay

Kumar Jaiswal

Order on Board (10.02.2025) Sanjay K. Agrawal, J

1.

When case is taken for hearing and learned counsel for the 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 2024:CGHC:36953-DB 2 / 4 department before the High Court has been enhanced to Rs.2 Crores, whereas in the present case the tax liability of assess is less than Rs.2 Crore. Therefore, in light of SOURABH PATEL PATEL Date: 2025.02.12 17:13:53 +0530

2 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 hereinbelow: “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 Appellate Tribunal 60 Lakh

2.

Before High Court 2 crore Before High Court 2 crore

3.

Before Supreme Court 5 crore 5 crore

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

3 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. 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. 2024:CGHC:36953-DB 4 / 4

7.

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

4.

In view aforesaid submission of learned counsel for the appellant where monetary limit (tax liability) in the present case is less than Rs.2 Crores therefore, in light of aforesaid circular (Para-5) dated 17/09/2024, the instant Tax Case stands disposed of. (Sanjay K. Agrawal) (Sanjay Kumar Jaiswal)

Judge Judge Sourabh P.

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