THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-3 (1) vs. M/S JILA SAHAKARI KENDRIYA BANK MARYADIT

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TAXC/42/2024HC ChhattisgarhCGHC01002915202423 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 Circular dated 17.09.2024, issued by the Central Board of Direct Taxes, revises the monetary limit for filing appeals before the High Court to Rs. 2 Crores. As the tax effect in the present case is less than this revised limit, the Court decided to dispose of the Tax Case finally in accordance with paragraph 5 of the said circular, which states that the modifications shall apply to appeals to be filed henceforth and also to pending appeals which may accordingly be withdrawn. The operative direction is that the Tax Case stands disposed of finally.

What were the facts?

The appellant, the Assistant Commissioner of Income Tax, Circle-3 (1) Raipur, filed a Tax Case before the High Court of Chhattisgarh at Bilaspur. The respondent is M/s Jila Sahakari Kendriya Bank Maryadit. The appeal was filed against an order or action (not specified in the judgment) for assessment year(s) not specified. The tax effect in dispute is less than Rs. 2 Crores. The appeal was listed for hearing on 24.09.2024.

What were the issues?

1. Whether the present appeal, filed by the revenue, 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, given that the tax effect is less than Rs. 2 Crores? Assessee's Contention: The learned counsel for the appellant (revenue) submitted that the Government of India, Ministry of Finance, has issued a new circular dated 17.09.2024, enhancing the monetary limits 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. Revenue's Contention: Not recorded. The judgment states that there was no appearance for the respondent (assessee).

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

1 / 4 2024:CGHC:37468-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 42 of 2024 • The Assistant Commissioner of Income Tax Circle-3 (1) Raipur, Chhattisgarh.

... Appellant versus • M/s Jila Sahakari Kendriya Bank Maryadit Opp. Lal Ganga Shopping Mall, G.E. Road, District : Raipur, Chhattisgarh ... 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 17:53:38 +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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