THE DY. COMMISSIONER OF INCOME TAX, vs. M/S JINDAL POWER LTD.,

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TAXC/23/2024HC ChhattisgarhCGHC01000179202422 October 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The Tribunal decided to dispose of the appeal as withdrawn. The reasoning was based on the submission of the petitioner's counsel regarding the new circular dated 17.09.2024, issued by the Government of India, Ministry of Finance. This circular revised the monetary limits for filing Income Tax Appeals before the High Court to Rs. 2 Crores. Since the tax liability in the present case was stated to be less than Rs. 2 Crores, and paragraph 5 of the circular permits the withdrawal of pending appeals that do not meet the revised criteria, the High Court found the prayer to be fair and reasonable. The operative direction was to dispose of the Tax Case as withdrawn. No issues were expressly left undecided.

What were the facts?

The petitioner, the Dy. Commissioner of Income Tax, Circle-1(1), Bilaspur, Chhattisgarh, filed a Tax Case before the High Court of Chhattisgarh at Bilaspur. The respondent is M/s Jindal Power Ltd. The appeal was filed against an order or action that is not specified in the judgment. The assessment year(s) are also not recorded. The petitioner's counsel submitted that a new circular dated 17.09.2024, issued by the Government of India, Ministry of Finance, has 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 is stated to be less than Rs. 2 Crores. Therefore, the petitioner requested that the appeal be disposed of finally in light of this circular.

What were the issues?

1. Whether the present appeal, where the tax liability is less than Rs. 2 Crores, should be withdrawn in light of the CBDT Circular dated 17.09.2024, which enhances the monetary limit for filing appeals before the High Court to Rs. 2 Crores? (Question of law, concerning the applicability of the circular and litigation policy). Contentions: Assessee (Petitioner): The petitioner argued that the tax liability in the present case is less than the enhanced monetary limit of Rs. 2 Crores stipulated in the CBDT Circular dated 17.09.2024. Therefore, in accordance with paragraph 5 of the said circular, which states that pending appeals may be withdrawn, the present appeal should be disposed of as withdrawn. Revenue (Respondent): No arguments were recorded for the respondent.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 3 2024:CGHC:41796-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 23 of 2024 1 - The Dy. Commissioner Of Income Tax, Circle-1(1), Bilaspur, Chhattisgarh

... Petitioner versus 1 - M/s Jindal Power Ltd., Tamnar, Raigarh, Chhattisgarh ... Respondent (Cause-title is taken from CIS) For Petitioner : Mr. Amit Chaudhari, Advocate For Respondent : None Division Bench Hon'ble Shri Justice Sanjay K. Agrawal & Hon'ble Shri Justice

Amitendra Kishore Prasad

Judgment on Board (23/10/2024) Sanjay K. Agrawal, J

1.

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 RAVI SHANKAR MANDAVI

2 / 3 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 hereinbelow:

“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.)

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 3 / 3 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 Crores therefore, in light of aforesaid circular (Para-5) dated 17/09/2024, the instant Tax Case stands disposed of as withdrawn. (Sanjay K. Agrawal) (Amitendra Kishore Prasad)

Judge Judge Ravi Mandavi

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