ASSISTANT COMMISSIONER OF INCOME TAX vs. SHRI SUNIL SAHU

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TAXC/103/2023HC ChhattisgarhCGHC01018568202329 September 2024Author: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE AMITENDRA KISHORE PRASAD4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the submission made by the learned counsel for the appellant was fair and reasonable. The Court noted that the new circular dated 17.09.2024, issued under Section 268A of the Income-tax Act, 1961, has revised the monetary limit for filing appeals before the High Court to Rs. 2 Crores. Since the tax liability in the present case is less than Rs. 2 Crores, the Court found it appropriate to dispose of the Tax Case finally in accordance with the aforesaid circular. The operative direction was to dispose of the Tax Case finally.

What were the facts?

The appellant, Assistant Commissioner of Income Tax (Central)-II, Bhopal, Madhya Pradesh, filed a Tax Case before the High Court of Chhattisgarh at Bilaspur against the respondent, Shri Sunil Sahu. The assessment year(s) are not specified. The appeal was filed against an order or action by a lower authority, the details of which are not provided. The amount in dispute (tax liability) is stated to be less than Rs. 2 Crores. The procedural history is that the case was taken up for hearing, and the appellant's counsel submitted that a new circular dated 17.09.2024 from the Ministry of Finance has enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. The appellant requested the disposal of the present appeal 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 disposed of in light of the CBDT Circular No. [Circular No. 5/2024, dated 17.09.2024] enhancing the monetary limit for filing appeals before the High Court to Rs. 2 Crores, as per Section 268A of the Income-tax Act, 1961? Assessee's Contention (Appellant): The appellant argued that a new circular dated 17.09.2024 has been issued by the Government of India, Ministry of Finance, 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 appellant relied on paragraph 5 of the said circular which states that it shall apply to SLPs/appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn. Revenue's Contention: No arguments were recorded for the revenue.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 4 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 103 of 2023 • Assistant Commissioner of Income Tax (Central)-Ii, District : Bhopal, Madhya Pradesh

... Appellant versus • Shri Sunil Sahu 3rd Floor, Shubham Corporate, Opposite Airtel Office, Ring Road No. 1, District : Raipur, Chhattisgarh ... Respondent For Appellant : 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 (30.09.2024) 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

2 / 4 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 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 3 / 4 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 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. 4 / 4

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 finally. (Sanjay K. Agrawal) (Amitendra Kishore Prasad)

Judge Judge vaishali LUCKY NAGARIA Date: 2024.09.30 17:17:36 +0530

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