Assistant Commissioner Of Income Tax - 1 1 Raipur c.g. vs. Shri B.L. Agrawal

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TAXC/104/2017HC ChhattisgarhCGHC01013427201708 January 2025Author: HON'BLE THE CHIEF JUSTICE,HON'BLE SHRI JUSTICE RAVINDRA KUMAR AGRAWAL4 pages
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What did the High Court hold?

The High Court held that the appeal should be disposed of in terms of the Circular dated 17.09.2024. The Court noted the submission by the appellant (Revenue) that a new circular dated 17.09.2024 had been issued by the Ministry of Finance, Government of India, enhancing the monetary limit 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, the appellant requested the appeal be disposed of finally. The respondent (Assessee) did not controvert this submission. The Court, in light of the aforesaid submission and the circular, disposed of the Tax Case. The operative direction was to dispose of the appeal, implying it was not decided on merits but based on the revised policy on litigation management.

What were the facts?

The appeal was filed by the Assistant Commissioner of Income Tax against an order dated 09.01.2017 passed by the Income Tax Appellate Tribunal (ITAT), Raipur Bench. This ITAT order arose from an appellate order dated 29.06.2011 passed by the Commissioner of Income Tax (Appeals), Raipur, concerning the assessment year 2009-2010. The original order was passed by the Assessing Officer on 29.12.2010. The appellant's counsel submitted that a new circular dated 17.09.2024 from the Ministry of Finance enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. As the tax liability in the present case was less than this enhanced limit, the appellant requested the appeal be disposed of finally. The respondent's counsel did not controvert this submission.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be disposed of in light of the revised monetary limits for filing appeals before the High Court as per the Circular dated 17.09.2024, given that the tax effect is less than Rs. 2 Crores? Assessee's Contention: The assessee argued that the Government of India, Ministry of Finance, issued a circular dated 17.09.2024, which enhanced 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 should be disposed of finally in accordance with this circular. The assessee also referred to a co-ordinate Division Bench order in TAXC No. 105 of 2024, dated 20.09.2024, which disposed of a similar matter. Revenue's Contention: The revenue did not controvert the assessee's submission and agreed that the appeal may be disposed of in terms of the order passed in the similar matter.

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:1434-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 104 of 2017 Assistant Commissioner Of Income Tax - 2 (1) Raipur C.G. Chhattisgarh

... Appellant versus Shri B.L. Agrawal Mayur Bhawan Near Radha Krishna Saw Mill, New Timber Market, Fafadih, Raipur Chhattisgarh.

... Respondent For Appellant : Ms. Anmol Sharma, Ms. Annapurna Tiwari and Mr. Rishabh Dev Singh, Advocates. For Respondent : Mr. Vinay Kumar Jain, through Video Conferencing Hon’ble Mr. Ramesh Sinha, Chief Justice Hon’ble Mr. Ravindra Kumar Agrawal, Judge

Judgment on Board Per

Ramesh Sinha, Chief Justice

09/01/2025

1.

Heard Ms. Anmol Sharma, learned counsel for the appellant as well as Mr. Vinay Kumar Jain, learned counsel for the respondent.

2.

Challenge in this appeal is to the order dated 09.01.2017 (Annexure A/1) passed by the Income Tax Appellate Tribunal, Raipur Bench, Raipur (for short, the ITAT) vide ITA No. 12/BLPR/2012, arising out of the appellate order dated 29.06.2011 (Annexure A/2) passed by the Commissioner of 2 Income Tax (Appeals) Raipur for the assessment year 2009-2010 being Appeal No. 370/10-11, which in turn arises out of the order dated 29.12.2010 (Annexure A/3) passed by the Assessing Officer i.e. the Assistant Commissioner of Income Tax 1(1), Raipur.

3.

When the 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 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. She further submits that a co-ordinate Division Bench had disposed of a similar matter being TAXC No. 105 of 2024 vide order dated 20.09.2024. 4. Learned counsel appearing for the other side does not controvert the above submission and submits that this appeal may be disposed of in terms of the order dated 20.09.2024 passed in TAXC No. 105 of 2024. 5. 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.

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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. Appeal / SLP in income tax matters Monetary limit (Tax effect in Rs.) 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 4 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.

7.

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

6.

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. (Ravindra Kumar Agrawal) (Ramesh Sinha) JUDGE CHIEF JUSTICE Amit AMIT KUMAR DUBEY AMIT KUMAR DUBEY Date: 2025.01.09 18:57:23 +0530

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