THE PR. COMMISSIONER OF INCOME TAX vs. M/S G.T. HOMES RANI AVANTI BAI CHOUK LODIPARA

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TAXC/160/2023HC ChhattisgarhCGHC01026560202305 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 CBDT Circular dated 17.09.2024, which states that the modifications shall come into effect from the date of issue and shall apply to appeals pending before the High Courts, which may accordingly be withdrawn, the Court found that since the monetary limit (tax liability) in the present case is less than Rs. 2 Crore, the instant Tax Case stands disposed of finally as withdrawn. No specific finding was given on the merits of the original appeal, as it was withdrawn based on the circular. The operative direction was to dispose of the appeal as withdrawn.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Raipur-1 against M/s G.T. Homes. The assessment year(s) are not specified. The order or action under challenge is an appeal filed before the High Court. The procedural history involves the appellant's counsel submitting that a new circular dated 17.09.2024 has enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crore. The tax liability in the present case is stated to be less than this enhanced limit. The respondent was represented by 'None'.

What were the issues?

1. Whether the present appeal, with a tax effect less than Rs. 2 Crore, is maintainable before the High Court in light of the CBDT Circular dated 17.09.2024? (Question of law) Assessee's contention: The appellant (Revenue) argued that the appeal should be disposed of as withdrawn in light of the new circular dated 17.09.2024, which raises the monetary limit for filing appeals before the High Court to Rs. 2 Crore. The tax liability in this case is below this limit. Revenue's contention: Not applicable as the Revenue is the appellant and made the submission for withdrawal.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 3 2024:CGHC:43003-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 160 of 2023 The Pr. Commissioner of Income Tax Raipur -1 (Chhattisgarh)

... Appellant versus M/s G.T. Homes Rani Avanti Bai Chouk Lodipara Kapa, Raipur- 4920001 (Chhattisgarh) PAN: AAFFG6266P ... 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 17:25:10 +0530

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