THE PR. COMMISSIONER OF INCOME TAX-3 LUDHIANA vs. M/S KWALITY OVERSEAS (P) LTD

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ITA/294/2019HC Punjab & HaryanaPHHC01051845201903 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the monetary limits for filing appeals, as revised by Circular No. 9/2024 dated 17.09.2024, are applicable to all cases under the Income-tax Act, 1961, including those relating to TDS/TCS, with exceptions as per paras 3.1 and 3.2 of Circular No. 5/2024. The Tribunal noted that the modifications came into effect from the date of issuance of Circular No. 9/2024, i.e., 17.09.2024, and shall apply to appeals to be filed before the Supreme Court, High Court, and Tribunal, and also apply to appeals pending before these authorities. Since the Revenue contended that the present case does not fall within the exception clause of Circular No. 5/2024, the Tribunal allowed the prayer for withdrawal. The operative direction was to allow the withdrawal of the appeal and dismiss it as withdrawn.

What were the facts?

The appeal was filed by the Revenue (Principal Commissioner of Income Tax) against M/s Kwality Overseas (P) Ltd. The case pertains to the assessment year(s) not specified in the judgment. The order or action under challenge is the appeal itself, which the Revenue sought to withdraw. The procedural history involves the Revenue's reliance on Circular No. 9/2024 issued by the Ministry of Finance, Department of Revenue, Government of India, dated 17.09.2024. This circular revised the monetary limits for filing appeals by the department before the ITAT, High Court, and Supreme Court. The Revenue contended that the present appeal, due to the revised monetary limits, should be withdrawn.

What were the issues?

1. Whether the revised monetary limits for filing appeals, as per Circular No. 9/2024 dated 17.09.2024, are applicable to the present appeal, thereby permitting its withdrawal. (Question of law, concerning the application of a departmental circular). Assessee's Contention: The judgment does not record any specific contentions from the assessee, M/s Kwality Overseas (P) Ltd. Revenue's Contention: The Revenue argued that in terms of Circular No. 9/2024, the monetary limits for filing appeals have been enhanced. They submitted that the present appeal does not fall within the exception clause of Circular No. 5/2024 and therefore, should be withdrawn. They relied on Circular No. 9/2024 dated 17.09.2024 and Circular No. 5/2024.

Which sections of the Income-tax Act were involved?

Section 1961

AI-generated summary — verify with the full judgment below

ITA-294-2019 ( 136 IN T

THE PR. COM M/S KWALIT CORAM: H

H Present: M

f SANJEEV PR

1.

Counsel Governm Board o limits fo Court a Circular with the b fi af S 1 2 3 (O&M)

Page 1 of 2 THE HIGH COURT OF PUNJAB CHANDIGARH

MMISSIONER OF INCOME TAX- Vs. TY OVERSEAS (P) LTD **** HON’BLE MR. JUSTICE SANJE HON’BLE MR. JUSTICE SANJA **** Mr. Saurabh Kapoor, Sr. Standing C Ms. Pridhi Sandhu, Jr. Standing Co 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 3. Before Supreme Court B AND HARYANA AT H ITA-294-2019 (O&M) Date of Decision: 03.10.2024 -3 LUDHIANA . . . . Appellant . . . . Respondent EEV PRAKASH SHARMA AY VASHISTH Counsel with ounsel 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 5 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-294-2019 ( 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.

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 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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