THE DEPUTY COMMISSIONER OF INCOME TAX, vs. M/S SANKALP REALITIES,

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TAXC/108/2023HC ChhattisgarhCGHC01018612202305 November 2024Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE AMITENDRA KISHORE PRASAD3 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. Citing paragraph 5 of the Circular dated 17.09.2024, which states that the modifications shall apply to pending appeals and that such appeals may accordingly be withdrawn, the Court found that since the monetary limit (tax liability) in the present case was less than Rs. 2 Crore, the appeal should be disposed of finally as withdrawn. The Court did not decide on the merits of the original tax dispute, as the appeal was withdrawn based on administrative policy regarding litigation management.

What were the facts?

The appellant, the Deputy Commissioner of Income Tax, Circle -3(1), Raipur, filed an appeal before the High Court of Chhattisgarh at Bilaspur against an order concerning M/s Sankalp Realities for Assessment Year 2009-10. The appeal was filed by the revenue. The respondent, M/s Sankalp Realities, was not represented. The appellant's counsel submitted that a new circular dated 17.09.2024 issued by the Government of India, Ministry of Finance, enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crore. The tax liability in the present case was stated to be less than this enhanced limit. Therefore, the appellant requested the appeal be disposed of finally in light of this circular.

What were the issues?

1. Whether the present appeal, filed by the Revenue against M/s Sankalp Realities for AY 2009-10, should be withdrawn or disposed of in light of the revised monetary limits for filing appeals before the High Court as per Circular No. 5/2024 dated 17.09.2024? Assessee's Contention: The assessee (Revenue in this context) argued that the tax liability in the present case is less than the enhanced monetary limit of Rs. 2 Crore for filing appeals before the High Court, as stipulated in the Circular dated 17.09.2024. Therefore, the appeal should be disposed of finally as withdrawn, in accordance with paragraph 5 of the said circular which states that pending appeals may be withdrawn. The Revenue relied on Circular No. 5/2024 dated 17.09.2024 and specifically paragraph 5 thereof. The respondent (M/s Sankalp Realities) did not present any arguments.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 3 2024:CGHC:43002-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 108 of 2023 The Deputy Commissioner of Income Tax, Cirxcle -3(1), Raipur Chhattisgarh.

... Appellant versus M/s Sankalp Realities, 28/620 Anand Niwas, Shankar Nagar, Raipur Chhattisgarh. PAN- ABCSF6391P, A.Y. 2009-10 ... Respondent For Appellant : Mr. Ajay Kumrani, Advocate on behalf of Mr. Amit Chaudhari, Advocate For Respondent : None Hon'ble Shri Sanjay K. Agrawal, Judge Hon'ble

Shri Amitendra Kishore Prasad

, Judge

Judgment on Board (06.11.2024) Sanjay K. Agrawal, J.

1.

When the case is taken 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 Crore, whereas in the present case, the tax liability 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 / 3

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:- Sl. 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

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.

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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.

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 Crore, 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) (Amitendra Kishore Prasad) Judge Judge Yogesh

YOGESH TIWARI TIWARI Date: 2024.11.06 17:24:23 +0530

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