DY. COMMISSIONER OF INCOME TAX (CENTRAL) 2 vs. M/S SHREE JAGDAMBA CONSTRUCTION CO.

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TAXC/15/2022HC ChhattisgarhCGHC01010801202222 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 of the learned counsel for the appellant is fair and reasonable. The Court noted that the tax liability in the present case is Rs. 1,83,51,566/-, which is less than Rs. 2 Crores. In light of Circular No. 5/2024 dated 15.03.2024, as revised by the subsequent circular dated 17.09.2024, which specifies the monetary limit for filing appeals before the High Court as Rs. 2 Crores, and considering that this circular applies to pending appeals which may accordingly be withdrawn, the instant Tax Case stands disposed of finally. The reasoning is based on the enhanced monetary limit and the instruction to withdraw pending appeals below the new limit. No specific issue was left undecided.

What were the facts?

The appellant, Dy. Commissioner of Income Tax, filed a Tax Case before the High Court of Chhattisgarh at Bilaspur. The respondent is M/s Shree Jagdamba Construction Co. The appeal concerns assessment years not explicitly stated. The appellant's counsel submitted that a new circular dated 17.09.2024, issued by the Ministry of Finance, Government of India, enhanced the monetary limit for filing Income Tax Appeals before the High Court to Rs. 2 Crores. The tax liability in the present appeal was stated to be less than Rs. 2 Crores. The respondent was not represented. The High Court noted the tax liability as Rs. 1,83,51,566/-.

What were the issues?

1. Whether the present appeal, where the tax effect is less than Rs. 2 Crores, is to be disposed of in light of the new circular dated 17.09.2024 issued by the Central Board of Direct Taxes (CBDT) enhancing the monetary limit for filing appeals before the High Court? (Question of law and fact, concerning the applicability of the circular). Contentions: Assessee: No arguments recorded as the respondent was not represented. 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. The tax liability in the present appeal is less than Rs. 2 Crores, and therefore, the appeal may be disposed of finally in light of this circular.

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. 15 of 2022 1 - Dy. Commissioner Of Income Tax (Central) 2 Raipur Chhattisgarh.

... Appellant versus 1 - M/s Shree Jagdamba Construction Co. Flat No. 222, 2nd Floor, Krishna Arcade, Lodhipara Chowk, Raipur, Chhattisgarh 492001. ... 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 (23.09.2024) 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 VAISHALI LUCKY NAGARIA VAISHALI LUCKY NAGARIA Date: 2024.09.24 16:36:47 +0530

2 / 4 Rs.2 Crores, whereas in the present appeal 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 Rs.1,83,51566/- which 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

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