INCOME TAX OFFICER-WARD 1(2) vs. M/S CHHATTISGARH SAHAKARI SAKH SAMITI MARYADIT

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TAXC/128/2024HC ChhattisgarhCGHC01013876202414 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 High Court held that the submission made by the learned counsel for the appellant (Income Tax Officer) was fair and reasonable. The Court noted that the monetary limit for filing appeals before the High Court has been enhanced to Rs. 2 Crores vide the CBDT Circular dated 17.09.2024. Since the tax liability in the present case was less than Rs. 2 Crores, the Court, in light of paragraph 5 of the aforesaid circular which states that pending appeals may be withdrawn, disposed of the instant Tax Case as withdrawn. The Court did not decide the merits of the case.

What were the facts?

The Income Tax Officer-Ward 1(2), Bhilai (Petitioner) filed a Tax Case before the High Court of Chhattisgarh at Bilaspur against M/s Chhattisgarh Sahakari Sakh Samiti Maryadit (Respondent) for Assessment Year 2018-19. The Petitioner's counsel submitted that the Government of India, Ministry of Finance, had issued a new circular dated 17.09.2024, enhancing the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. The counsel stated that the tax liability in the present case was less than Rs. 2 Crores and requested the appeal be disposed of finally in light of the new circular. The Respondent was not represented.

What were the issues?

1. Whether the present appeal, where the tax liability is less than Rs. 2 Crores, should be disposed of in light of the revised monetary limits for filing appeals before the High Court as per the CBDT Circular dated 17.09.2024? (Question of law, concerning the applicability of administrative instructions on litigation management). Assessee's Contention: The Petitioner (Income Tax Officer) argued that the tax effect in the present case is below the enhanced monetary limit of Rs. 2 Crores stipulated in the CBDT Circular dated 17.09.2024. Therefore, the appeal should be disposed of finally as per the directions in the circular, which allows for withdrawal of pending appeals below the specified limits. Revenue's Contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 3 2024:CGHC:40273-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 128 of 2024 1 - Income Tax Officer-Ward 1(2) Bhilai Chhattisgarh.

... Petitioner versus 1 - M/s Chhattisgarh Sahakari Sakh Samiti Maryadit Chhattisgarh Bhawan, Sector-1, Bhilai Durg Chhattisgarh Pan No. Aaaak1188l, A.Y. -2018-19 ... Respondent (Cause-title taken from Case Information System) For Petitioner : Mr. Amit Chaudhari, Advocate and Mr. Vijay Chawla, Advocate For Respondent : None Division Bench Hon'ble Shri Justice Sanjay K. Agrawal & Hon'ble Shri Justice Amitendra Kishore Prasad Order on Board (15/10/2024) Sanjay K. Agrawal, J.

1.

When 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 RAVI SHANKAR MANDAVI

2 / 3 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 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:- S. No . Appeals/SLPs in Income-tax matters Monetary Limit (Tax effect in Rs.)

1.

Before Income Tax Appellate Tribunal 60 lakhs

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

3 / 3 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 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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