THE INCOME TAX OFFICER - 1 vs. SHRI PARMANAND GUPTA

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TAXC/25/2023HC ChhattisgarhCGHC01000296202314 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 (Revenue) was fair and reasonable. The Court noted that the Government of India, Ministry of Finance, had issued a circular dated 17.09.2024, revising 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 less than Rs. 2 Crores, and in light of paragraph 5 of the aforesaid circular dated 17.09.2024, the High Court disposed of the Tax Case as withdrawn. The circular itself clarifies that it applies to appeals pending before High Courts and that such appeals may be withdrawn. The reasoning is based on the administrative decision to reduce litigation by adhering to enhanced monetary limits for filing appeals.

What were the facts?

The Income Tax Officer - 1 Raigarh (Petitioner) filed a Tax Case before the High Court of Chhattisgarh at Bilaspur against Shri Parmanand Gupta (Respondent). The assessment year(s) are not specified. The appeal concerns the monetary limits for filing Income Tax appeals by the department before the High Court. The Petitioner's counsel submitted that a new circular dated 17.09.2024 was issued by the Government of India, Ministry of Finance, enhancing the monetary limit for filing Income Tax appeals before the High Court to Rs. 2 Crores. The tax liability in the present case is stated to be less than Rs. 2 Crores. The Respondent was not represented.

What were the issues?

1. Whether the present appeal, with a tax liability 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 circular dated 17.09.2024? (Question of law) Assessee's Contention: The Petitioner (Revenue) argued that the Government of India, Ministry of Finance, has issued a new circular dated 17.09.2024, which enhances the monetary limit for filing Income Tax Appeals by the department before the High Court to Rs. 2 Crores. Since 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. The Petitioner relied on Circular No. 5/2024 dated 15.03.2024 and the subsequent circular dated 17.09.2024, specifically paragraph 5 which states that the modifications shall apply to appeals pending before High Courts and may accordingly be withdrawn. Revenue's Contention: No argument was recorded for the Revenue as the Petitioner is the Revenue.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 3 2024:CGHC:40272-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 25 of 2023 1 - The Income Tax Officer - 1 Raigarh, District Raigarh Chhattisgarh

... Petitioner versus 1 - Shri Parmanand Gupta Alochna Agrawal, L/h Of Late Shri Permanand Gupta, Prop. M/s Balaji Handloom, 19/48, Palace Road, Raigarh District Raigarh Chhattisgarh ... 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 RAVI SHANKAR MANDAVI

2 / 3 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 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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