INCOME TAX OFFICER vs. CAPITAL BUILCON PVT. LTD.

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TAXC/232/2024HC ChhattisgarhCGHC01041522202409 February 2025Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE SANJAY KUMAR JAISWAL4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the submission made by the learned counsel for the appellant was fair and reasonable. The Court noted that the Government of India, Ministry of Finance, had issued a circular dated 17.09.2024, revising the monetary limits for filing Income Tax Appeals before the High Court to Rs. 2 Crores. The Court also referred to paragraph 5 of this circular, which clarifies that the modifications shall come into effect from the date of issue and will apply to appeals to be filed henceforth as well as pending appeals, which may accordingly be withdrawn. Since the monetary limit (tax liability) in the present case was less than Rs. 2 Crores, the High Court, in light of the aforesaid circular, disposed of the instant Tax Case. The operative direction was to dispose of the appeal.

What were the facts?

The Income Tax Officer Ward 3(1), Raipur (Appellant) filed a Tax Case before the Chhattisgarh High Court against Capital Builcon Pvt. Ltd. (Respondent). The appeal was filed against an order or action by a lower authority, though the specific authority and the assessment year(s) are not detailed. The amount in dispute is also not explicitly stated, but it 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 from the Ministry of Finance has enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. The appellant requested the present appeal, where the tax liability is less than this enhanced limit, be disposed of finally in light of the new circular.

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 Circular dated 17.09.2024 issued by the Government of India, Ministry of Finance, which enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores? Assessee's Contention: The assessee (appellant) argued that the new circular dated 17.09.2024 has enhanced the monetary limit for filing appeals before the High Court to Rs. 2 Crores. As the tax liability in the present case is less than this amount, the appeal may be disposed of finally. The assessee relied on Para 5 of the said circular, which states that it shall apply to SLPs/appeals to be filed henceforth and pending appeals, which may accordingly be withdrawn. Revenue's Contention: No specific contention was recorded for the revenue as the appeal was disposed of based on the appellant's submission and the circular.

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:7272-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 232 of 2024 • Income Tax Officer Ward 3(1), Raipur Chhattisgarh.

... Appellant versus • Capital Builcon Pvt. Ltd. 7, Shyam Nagar Road, Civil Lines, Raipur, Chhattisgarh.

... 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 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

3 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. 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

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