THE INCOME TAX OFFICER vs. PADMA DHURWAY

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TAXC/150/2024HC ChhattisgarhCGHC01018812202420 January 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 prayer made by the learned counsel for the appellant (Revenue) is fair and reasonable. The Court noted that the CBDT Circular dated 17.09.2024, issued under Section 268A of the Income-tax Act, 1961, has revised the monetary limits for filing appeals before the High Court to Rs. 2 Crores. Paragraph 5 of this circular clarifies 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apply to appeals to be filed henceforth and also to appeals pending before the High Courts, which may accordingly be withdrawn.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 is less than Rs. 2 Crores, the Court found it appropriate to dispose of the Tax Case in light of the aforesaid circular. The operative direction is that the Tax Case stands disposed of.

What were the facts?

The Income Tax Officer -1(1), Bhilai District Durg (the Appellant/Revenue) filed a Tax Case before the High Court of Chhattisgarh at Bilaspur. The case involved Padma Dhurway (the Respondent/assessee) for Assessment Year 2018-19. The appeal was filed against an order or action that is not specified in the judgment. The amount in dispute is not explicitly stated but is implied to be less than Rs. 2 Crores. The procedural history leading to this appeal is not detailed, other than the fact that the Revenue is now seeking to withdraw or dispose of the appeal based on a new circular.

What were the issues?

1. Whether, in light of the Central Board of Direct Taxes (CBDT) Circular dated 17.09.2024, the present appeal filed by the Revenue before the High Court, where the tax effect is less than Rs. 2 Crores, should be disposed of finally? The Revenue's contention is that the Government of India, Ministry of Finance, has issued a new circular dated 17.09.2024, 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 this enhanced limit, the Revenue argues that the appeal may be disposed of finally in light of this circular. The judgment does not record any specific arguments from the Respondent/assessee.

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:3640-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 150 of 2024 The Income Tax Officer -1(1), Bhilai District Durg C.G.

... Appellant versus Padma Dhurway, Near Pawan Kirana Store, Sangram Chowk, Prem Nagar, Sikola Bhata, Durg C.G. PAN-AARPD5814C, A.Y. 2018-19

... Respondent For Appellant : Mr. Ajay Kumrani, Advocate appearing on behalf of Mr. Amit Choudhari, Advocate For Respondent : None

Division Bench Hon'ble

Shri Justice Sanjay K. Agrawal

Hon'ble

Shri

Justice

Sanjay Kumar Jaiswal

Judgment on Board (21.01.2025) Sanjay K. Agrawal, J. SHUBHAM SINGH RAGHUVANSHI Date: 2025.01.22 15:10:12 +0530

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1.

When case is taken for hearing, learned counsel appearing 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 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 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)) dated 15.03.2024 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.)

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1.

Before

Income

Tax Appellate Tribunal 60 Lakh

2.

Before High Court 2 Crore

3.

Before Supreme Court 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 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.

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7.

This issues under section 268A of the Income- tax 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 Shubham

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