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

PDF · subscribers
TAXC/19/2022HC ChhattisgarhCGHC01010790202222 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 (Revenue) is fair and reasonable. The Court noted that the tax liability in the present case is Rs. 1,34,26,737/-, which is less than the revised monetary limit of Rs. 2 Crores for filing appeals before the High Court, as stipulated in the circular dated 17.09.2024. The Court referred to paragraph 5 of the circular dated 17.09.2024, which states that the modifications shall come into effect from the date of issue of the circular and will apply to appeals to be filed henceforth, and also to pending appeals which may accordingly be withdrawn. Consequently, the High Court disposed of the Tax Case finally in light of the aforesaid circular. The operative direction was to dispose of the appeal finally.

What were the facts?

The appeal was filed by the Dy. Commissioner of Income Tax (Central) - 2, Raipur (the Revenue) against M/s Shree Jagdamba Construction Co. (the assessee). The assessment year is not specified. The appeal is against an order of the Income Tax Appellate Tribunal (ITAT). The tax effect in dispute is Rs. 1,34,26,737/-. The Revenue's counsel submitted that a new circular dated 17.09.2024 has enhanced the monetary limit for filing appeals before the High Court to Rs. 2 Crores. Since the tax liability in this case is less than Rs. 2 Crores, the Revenue requested that the appeal be disposed of finally in light of this circular. The respondent assessee was not represented.

What were the issues?

1. Whether the present appeal, with a tax effect of Rs. 1,34,26,737/-, is maintainable before the High Court in light of the revised monetary limits for filing appeals by the Department before the High Court as per the Circular dated 17.09.2024. The Revenue argued that the Government of India, Ministry of Finance, has issued a new circular dated 17.09.2024, which enhances the monetary limit for filing Income Tax Appeals by the department before the High Court to Rs. 2 Crores. As the tax liability in the present appeal is less than Rs. 2 Crores, the Revenue contended that the appeal may be disposed of finally in light of this circular. The Revenue relied on Circular No 5/2024 dated 15.03.2024 and the subsequent circular dated 17.09.2024, specifically paragraph 5 thereof, which states that the modifications shall apply to SLPs/appeals to be filed henceforth and also to pending SLPs/appeals which may accordingly be withdrawn. The Revenue also cited Section 268A of the Income-tax Act, 1961, which deals with the power to compound offences and the settlement of cases. The assessee did not present any arguments.

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. 19 of 2022 • Dy. Commissioner of Income Tax (Central) - 2 Raipur Chhattisgarh.

... Appellant versus • 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 VAISHALI LUCKY NAGARIA VAISHALI LUCKY NAGARIA Date: 2024.09.24 16:27:47 +0530

2 / 4 department before the High Court has been enhanced to 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 / 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 Rs. 1,34,26,737/- 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

More judgments on Section 268A

All 3,931 judgments and leading authorities on Section 268A →

Recent GST High Court judgments

Search GST case law →