THE PRINCIPAL COMMISSIONER OF INCOME TAX, ( CENTRAL) GURUGRAM vs. M/S ORIENT CRAFT LTD

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ITA/126/2022HC Punjab & HaryanaPHHC01029486202203 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the withdrawal of the appeal. The Court noted that Circular No. 9/2024, effective from September 17, 2024, revised the monetary limits for filing appeals before the ITAT, High Court, and Supreme Court. The Revenue submitted that the present case did not fall within the exception clause of Circular No. 5/2024 and therefore, the appeal should be withdrawn. The Court found merit in this submission and allowed the prayer for withdrawal. Consequently, the appeal was dismissed as withdrawn, and all pending applications were also disposed of as withdrawn. The principle established is that appeals can be withdrawn by the Revenue if they no longer meet the enhanced monetary limits prescribed by subsequent circulars, provided they do not fall under any specific exceptions.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax, filed an appeal before the High Court against M/s Orient Craft Ltd. The appeal was filed under the Income Tax Act. The core of the matter revolves around the monetary limits for filing appeals by the department before various judicial forums, including the Income Tax Appellate Tribunal (ITAT), High Court, and Supreme Court. A Circular No. 9/2024, dated September 17, 2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, revised these monetary limits upwards. The Revenue sought to withdraw the present appeal based on this revised circular.

What were the issues?

1. Whether the revised monetary limits for filing appeals, as stipulated in Circular No. 9/2024 dated 17.09.2024, are applicable to the present appeal filed before the High Court, thereby permitting its withdrawal. This is a question of law concerning the retrospective or prospective application of the circular and its impact on pending litigation. Contentions: Assessee: The judgment does not record any specific contentions from the assessee's side, as the matter was decided based on the Revenue's submission and the circular. Revenue: The Revenue contended that in terms of Circular No. 9/2024, the monetary limits for filing appeals have been enhanced. The present appeal, filed before the High Court, does not fall within the exception clause of Circular No. 5/2024. Therefore, the Revenue prayed for the withdrawal of the present appeal, as the tax effect likely falls below the enhanced limit, and all pending applications should also be dismissed as withdrawn.

AI-generated summary — verify with the full judgment below

ITA-126-2022 ( 136 IN T

THE PRINCIP GURUGRAM M/S ORIENT CORAM: H

H Present: M

SANJEEV PR

1.

Counsel Governm Board o limits fo Court a Circular with the b fi af S 1 2 (O&M)

Page 1 of 2 THE HIGH COURT OF PUNJAB CHANDIGARH

PAL COMMISSIONER OF INCOM

Vs. CRAFT LTD **** HON’BLE MR. JUSTICE SANJE HON’BLE MR. JUSTICE SANJA **** Mr. Yogesh Putney, Sr. Standing C for the appellant/Revenue. **** RAKASH SHARMA, J.(Oral) l for the appellant submits that in t ment of India, Ministry of Finance of Direct Taxes dated 17.09.2024 for filing of the appeals by the de and SLPs before the Supreme C r No.5/2024 has been amended an e purpose to manage litigations: “ 2. As a step towards manag been decided by the Board to revise filing of appeals in Income-tax cases a aforementioned Circular as follows: Sl. No. Appeals/SLPs in Income-tax 1. Before Income Tax Appella 2. Before High Court B AND HARYANA AT H ITA-126-2022 (O&M) Date of Decision: 03.10.2024 ME TAX, ( CENTRAL) . . . . Appellant . . . . Respondent EEV PRAKASH SHARMA AY VASHISTH Counsel terms of the Circular issued by the e, Department of Revenue, Central bearing No.9/2024, the monetary epartment before the ITAT, High Court has been enhanced and the d following steps have been taken gement of litigation, it has e the monetary limits for as stated in Para 4.1 of the x matters Monetary Limit (Tax effect in Rs.) te Tribunal 60 lakh 2 crore

) 4 t t e l y h e n MOHIT GOYAL 2024.10.14 11:58 I attest to the accuracy and integrity of this document

ITA-126-2022 ( 3 r in 1 5 s m 2. The mo Circular filed be the app which h 3. In view not fall prays fo 4. Accordi withdraw 5. All pend

October 03, 202 Mohit goyal 1. Whether 2. Whether (O&M)

Page 2 of 2 3. Before Supreme Court

3.

Monetary limits given in regard to filing appeal/SLP shall be ncluding those relating to TDS/TCS u 1961 with exceptions as per paras 3. 5/2024 dated 15.03.2024, where the d shall be taken on merits, without regar monetary limits.”

odifications have come into effe r i.e. 17.09.2024, and therefore s fore the Supreme Court, High Cou eals pending before the Supreme have been directed to be withdrawn of aforesaid Circular No.09/2024 within the exception clause of Ci or withdrawal of the present appeal ingly, we allow the prayer as abov wn. ding applications also stand dismis

(SAN 24 speaking/reasoned?

Y reportable?

Y 5 crore paragraph 2 above with e applicable to all cases under the Income-tax Act, .1 and 3.2 of Circular No decision to appeal/file SLP rd to the tax effect and the ect from the date of issuance of shall apply to SLPs/appeals to be urt and Tribunal and also apply to Court, High Court and Tribunal, n. dated 17.09.2024, as the case does ircular No.5/2024, learned counsel . ve, and the appeal is dismissed as sed as withdrawn accordingly. NJEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH) JUDGE Yes/No Yes/No

f e o , s l s MOHIT GOYAL 2024.10.14 11:58 I attest to the accuracy and integrity of this document

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