INCOME TAX OFFICER, WARD-1(2) vs. MANAV WAREHOUSING PVT. LTD.

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TAXC/161/2024HC ChhattisgarhCGHC01018770202423 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 (Revenue) was fair and reasonable. The Court noted that the monetary limit for filing appeals before the High Court has been revised to Rs. 2 Crores by the CBDT Circular dated 17.09.2024. Since the tax liability in the present case is less than Rs. 2 Crores, the Court, in light of paragraph 5 of the aforesaid circular which states that the circular shall apply to appeals pending before High Courts and may accordingly be withdrawn, disposed of the instant Tax Case finally. The principle is that appeals falling below the revised monetary threshold are to be withdrawn or disposed of, unless they fall under specified exceptions which were not argued here.

What were the facts?

The Income Tax Officer, Ward-1(2) Raipur (Appellant) filed a Tax Case before the High Court of Chhattisgarh at Bilaspur against Manav Warehousing Pvt. Ltd. (Respondent). The appeal was filed for an assessment year not specified in the judgment. The Appellant's counsel submitted that a new circular dated 17.09.2024, issued by the Ministry of Finance, Government of India, has enhanced the monetary limit for filing Income Tax Appeals by the department before the High Court to Rs. 2 Crores. The counsel stated that the tax liability in the present case is less than Rs. 2 Crores and therefore, the appeal may be disposed of finally in light of this circular. The Respondent was not represented.

What were the issues?

1. Whether the present appeal, where the tax effect is less than Rs. 2 Crores, should be disposed of in light of the Circular dated 17.09.2024 issued by the Central Board of Direct Taxes (CBDT), which revises the monetary limits for filing appeals before the High Court to Rs. 2 Crores. Assessee's Contention: The Appellant (Revenue) 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, the appeal should be disposed of finally as per the circular. Revenue's Contention: Not recorded as the Revenue is the Appellant in this case. However, the Appellant's counsel presented the argument based on the circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 4 2024:CGHC:37474-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 161 of 2024 • Income Tax Officer, Ward-1(2) Raipur (C.G.)

... Appellant versus • Manav Warehousing Pvt. Ltd. Ring Road No. 2, Gondwara, Urla Industrial Area, Raipur (C.G.) ... Respondent For Appellant : Mr. Amit Chaudhari along with Ms. Ankita Gourha, Advocate. For Respondent : None. Division Bench Hon'ble Shri Justice Sanjay K. Agrawal & Hon'ble Shri Justice

Amitendra Kishore Prasad

Judgment on Board (24.09.2024) 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 LUCKY NAGARIA Date: 2024.09.24 17:47:31 +0530

2 / 4 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 lakh

2.

Before High Court 2 crore

3.

Before Supreme Court 5 crore

3 / 4

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 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.

4 / 4

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

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