THE ASSISTANT / DEPUTY COMMISSIONER OF INCOME TAX vs. SHRI KUNJ BIHARI AGRAWAL

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TAXC/173/2024HC ChhattisgarhCGHC01024383202418 November 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 appellant (revenue) was fair and reasonable. The Court noted that the new circular dated September 17, 2024, issued by the Central Board of Direct Taxes (CBDT), revises the monetary limits for filing appeals. Specifically, the limit for appeals before the High Court has been increased to Rs. 2 Crores. Paragraph 5 of the circular states that it shall apply to SLPs/appeals to be filed henceforth and also to pending SLPs/appeals, which may accordingly be withdrawn. Since the tax liability in the present case was less than Rs. 2 Crores, and in light of the aforesaid circular, the High Court disposed of the Tax Case as withdrawn. No specific issue was left undecided; the entire appeal was disposed of based on the circular.

What were the facts?

The Assistant/Deputy Commissioner of Income Tax, CPC, Bengaluru (the applicant/revenue) filed a Tax Case before the High Court of Chhattisgarh at Bilaspur against Shri Kunj Bihari Agrawal British (I) Trading Co. (the respondent/assessee). The appeal was filed challenging an order or action that is not specified in the judgment. The procedural history indicates that the case was taken up for hearing on November 19, 2024. The applicant'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 by the department before the High Court to Rs. 2 Crores. The tax liability in the present case was stated to be less than Rs. 2 Crores.

What were the issues?

1. Whether the present appeal, filed by the revenue, should be disposed of as withdrawn in light of the new circular dated September 17, 2024, which enhances the monetary limit for filing appeals before the High Court to Rs. 2 Crores, given that the tax effect in this case is less than that amount? Assessee's contentions: None recorded. Revenue's contentions: The revenue, through its counsel, submitted that a new circular dated September 17, 2024, has been issued by the Government of India, Ministry of Finance, which enhances the monetary limit for filing Income Tax Appeals by the department before the High Court to Rs. 2 Crores. As 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.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 4 2024:CGHC:44945-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 173 of 2024 The Assistant / Deputy Commissioner of Income Tax, CPC, Bengaluru

... Applicant Versus Shri Kunj Bihari Agrawal British (I) Trading Co., Commercial Complex, T.P. Nagar, Korba (C.G.), pan - ADNPA6912D ... Respondent For Applicant : Mr. Amit Chaudhari, Advocate with Mr. Vijay Chawla, Advocate. For Respondent : None. Hon'ble Shri

Justice Sanjay K. Agrawal

Hon'ble Shri Justice Radhakishan Agrawal Judgment on Board 19.11.2024 Sanjay K. Agrawal, J.

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 SAURABH YADAV SAURABH YADAV Date: 2024.11.19 16:30:58 +0530

2 / 4 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 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.)

3 / 4

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.

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

4 / 4 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

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