Income Tax Officer vs. M/s. Anjani Associates

PDF · subscribers
TAXC/47/2019HC ChhattisgarhCGHC01024446201908 December 2024Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE RADHAKISHAN AGRAWAL4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the submission made by the learned counsel for the applicant (Revenue) was fair and reasonable. The Court noted that the new circular dated 17.09.2024, issued under Section 268A of the Income-tax Act, 1961, specifies that the monetary limit for filing appeals before the High Court is Rs. 2 Crores. Paragraph 5 of this circular explicitly states that it shall apply to SLPs/appeals to be filed henceforth and shall also apply to SLPs/appeals pending before the Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn. Since the monetary limit (tax liability) in the present case was less than Rs. 2 Crores, the High Court disposed of the Tax Case finally as withdrawn, in accordance with the provisions of the circular.

What were the facts?

The applicant, Income Tax Officer Ward 1(2), Bilaspur, Chhattisgarh, filed a Tax Case (appeal) before the High Court of Chhattisgarh at Bilaspur against M/s. Anjani Associates. The appeal was filed against an order or action of an unspecified authority. The assessment year(s) and the amount in dispute are not recorded in the judgment. The procedural history leading to this appeal is not detailed, other than the fact that the appeal is now before the High Court. The case was listed for hearing on December 9, 2024.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be disposed of finally in light of the new circular issued by the Government of India, Ministry of Finance, enhancing the monetary limits for filing Income Tax Appeals before the High Court to Rs. 2 Crores, when the tax liability in the present case is less than Rs. 2 Crores? Assessee's Contention: The learned counsel for the applicant (Revenue) submitted that a new circular dated 17.09.2024 has been issued by the Government of India, Ministry of Finance, which enhances the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. Since the tax liability in the present case is less than Rs. 2 Crores, the appeal may be disposed of finally in light of this circular. The applicant relied on Circular No. 5/2024 dated 15.03.2024 and the subsequent circular dated 17.09.2024. Revenue's Contention: None recorded.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 4

2024:CGHC:48228-DB

NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 47 of 2019 Income Tax Officer Ward 1 (2), Bilaspur, Chhattisgarh., District : Bilaspur, Chhattisgarh

... Applicant versus M/s. Anjani Associates Opp. Jain Plaza, Link Road, Bilaspur, Chhattisgarh, District : Bilaspur, Chhattisgarh ... Respondent

For Applicant : Mr. Amit Chaudhari, Advocate with Mr. Ajay Kumrani, Advocate. For Respondent : None. Hon'ble Shri

Justice Sanjay K. Agrawal

Hon'ble Shri Justice Radhakishan Agrawal Judgment on Board 09.12.2024 Sanjay K. Agrawal, J. SAURABH YADAV SAURABH YADAV Date: 2024.12.10 11:45:10 +0530

2 / 4

1.

When the case is taken up for hearing, 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.

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 herein-below:

“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

3 / 4 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 2 crore

3.

Before Supreme Court 5 core

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.

4 / 4

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.

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 finally as withdrawn. (Sanjay K. Agrawal) (Radhakishan Agrawal) JUDGE JUDGE Saurabh

More judgments on Section 268A

All 3,931 judgments and leading authorities on Section 268A →

Recent GST High Court judgments

Search GST case law →