PR COMMISSIONER OF INCOME TAX 1 CHANDIGARH vs. ESSIX BIOSCIENCES LIMITED

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ITA/106/2024HC Punjab & HaryanaPHHC01105701202404 December 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the prayer of the revenue to withdraw the appeal. The Court noted that CBDT Circular No. 9/2024, effective from 17.09.2024, has revised the monetary limits for filing appeals before the High Court to Rs. 2 crore. The revenue's counsel submitted that the present case does not fall within any exception to this Circular. Consequently, the Court found no impediment to allowing the withdrawal of the appeal. The reasoning is based on the departmental policy to manage litigation by revising monetary thresholds for appeals. The ratio decidendi is that appeals filed by the revenue, which do not meet the enhanced monetary limits prescribed by the latest CBDT Circular and do not fall under any exceptions, are to be withdrawn. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1, Chandigarh (the revenue) against Essix Biosciences Ltd. (the assessee). The assessment year(s) are not specified. The order or action under challenge is the appeal itself, filed before the High Court. The procedural history involves the revenue seeking to withdraw the appeal based on a new Circular issued by the Central Board of Direct Taxes (CBDT). The Circular No. 9/2024, dated 17.09.2024, revised the monetary limits for filing appeals by the department before various authorities, including the High Court, enhancing it to Rs. 2 crore. The revenue's counsel submitted that the present case does not fall within any exception clause of the earlier Circular No. 5/2024, and therefore, the appeal should be withdrawn.

What were the issues?

1. Whether the appeal filed by the revenue is to be withdrawn in light of CBDT Circular No. 9/2024 enhancing the monetary limits for filing appeals before the High Court? Assessee's Contentions: The judgment records no specific contentions from the assessee. Revenue's Contentions: The revenue, through its learned counsel, submitted that CBDT Circular No. 9/2024 dated 17.09.2024 has enhanced the monetary limits for filing appeals before the High Court to Rs. 2 crore. It was further submitted that the present case does not fall within the exception clauses of Circular No. 5/2024. Therefore, the revenue prayed for the withdrawal of the present appeal in terms of the said Circular, which aims to manage litigation.

AI-generated summary — verify with the full judgment below

ITA-106-2024 (O&M) - 1 - 122 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-106-2024 (O&M) Date of Decision: 04.12.2024 PR. COMMISSIONER OF INCOME TAX-1, CHANDIGARH . . . . Appellant(s) Vs. ESSIX BIOSCIENCES LTD. . . . . Respondent(s) **** CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH **** Present: Mr. Yogesh Putney, Sr. Standing Counsel and Mr. Vaibhav Gupta, Standing Counsel for the appellant(s) – revenue. **** SANJEEV PRAKASH SHARMA, J.(Oral) 1. Learned counsel for the appellant submits that in terms of the Circular bearing No.9/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes, the monetary limits for filing of the appeals by the department before the ITAT, High Court and SLP/Appeals before the Supreme Court have been enhanced and the Circular No.5/2024 has been amended and following steps have been taken with the purpose to manage litigations: “ 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: Sl. 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 all cases including those relating to TDS/TCS under the Income-tax Act, JAWALA RAM 2024.12.04 17:56 I attest to the accuracy and authenticity of this document

ITA-106-2024 (O&M) - 2 - 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.” 2. The modifications have come into effect from the date of issuance of Circular i.e. 17.09.2024, and therefore shall apply to SLPs/appeals to be filed before the Supreme Court, High Court and Tribunal and also apply to the appeals pending before the Supreme Court, High Court and Tribunal, which have been directed to be withdrawn. 3. In view of aforesaid Circular No.09/2024 dated 17.09.2024, as the case does not fall within the exception clause of Circular No.5/2024, learned counsel prays for withdrawal of the present appeal. 4. Accordingly, we allow the prayer as above, and the appeal is dismissed as withdrawn. 5. All pending applications also stand disposed of accordingly.

(SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE December 04, 2024 J.Ram 1. Whether speaking/reasoned? Yes/No 2. Whether reportable? Yes/No JAWALA RAM 2024.12.04 17:56 I attest to the accuracy and authenticity of this document

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