THE ASSISTANT COMMISSIONER OF INCOME TAX, vs. SHRI OMI BAGADIA

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TAXC/28/2023HC ChhattisgarhCGHC01000224202313 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 of the learned counsel for the appellant (revenue) was fair and reasonable. In light of the aforesaid circular dated 17.09.2024, specifically paragraph 5 which states that the modifications shall apply to SLPs/appeals pending before High Courts and may accordingly be withdrawn, and considering that the monetary limit (tax liability) in the present case is less than Rs.2 Crore, the instant Tax Case was disposed of finally as withdrawn. The court did not decide the merits of the case. The operative direction was to dispose of the appeal as withdrawn.

What were the facts?

The Assistant Commissioner of Income Tax, Circle -1(1), Raipur (the appellant/revenue) filed a Tax Case before the High Court of Chhattisgarh at Bilaspur against Shri Omi Bagadia (the respondent/assessee). The appeal was filed for assessment year(s) not specified in the judgment. The revenue'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 Rs.2 Crore. The respondent/assessee was represented by 'None'.

What were the issues?

1. Whether the present appeal, with a tax effect less than Rs.2 Crore, should be disposed of as withdrawn in light of the CBDT Circular dated 17.09.2024 enhancing the monetary limit for filing appeals before the High Court? (Question of law, relying on Section 268A of the Income-tax Act, 1961). Contentions: Assessee: No arguments recorded as 'None' appeared for the respondent. Revenue: The revenue argued that the appeal may be disposed of finally in light of the new circular dated 17.09.2024, which enhances the monetary limit for filing appeals before the High Court to Rs.2 Crore, and the tax liability in this case is below that limit. The revenue relied on Circular No 5/2024 dated 15.03.2024 and the subsequent Circular dated 17.09.2024.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 3 2024:CGHC:39989-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 28 of 2023 The Assistant Commissioner of Income Tax, Circle -1(1), Raipur, Chhattisgarh

... Appellant versus Shri Omi Bagadia, 15-16, Bagadia Mension, Jawarhar Nagar, Raipur Chhattisgarh ... Respondent For Appellant : Mr. Amit Chaudhari, Advocate For Respondent : None Hon'ble Shri Sanjay K. Agrawal, Judge Hon'ble

Shri Amitendra Kishore Prasad

, Judge

Judgment on Board Sanjay K. Agrawal, J. 14.10.2024

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 Crore, 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,

2 / 3 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:- 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

3 / 3 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 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: 2024.10.15 18:07:29 +0530

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