COMMISSIONER OF INCOME TAX GURGAON vs. PRABHU DAYAL MEMORIAL RELIGIOUS & EDUCATIONAL ASSOCIATION

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ITA/401/2016HC Punjab & HaryanaPHHC01110613201618 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 prayer for withdrawal of the appeal. The Court noted that the appellant's counsel submitted that in terms of Circular No. 5/2024, the monetary limits for filing appeals have been enhanced. The counsel further prayed for the withdrawal of the present appeal, stating that the case does not fall within the exception clause of Circular No. 5/2024. The Court found this submission acceptable and accordingly, allowed the prayer. The appeal was dismissed as withdrawn. The reasoning is primarily based on the administrative decision to manage litigation by revising monetary limits for appeals, and the appellant's counsel's submission that the present case falls within the scope of withdrawal under the new circular. The operative direction was to dismiss the appeal as withdrawn. No specific issue was left undecided, as the appeal was disposed of on a procedural ground.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central), Gurgaon against the order of the Income Tax Appellate Tribunal (ITAT). The respondent was Prabhu Dayal Memorial Religious & Educational Association. The appeal was filed in the High Court of Punjab and Haryana. The core of the submission by the appellant's counsel was based on a Circular No. 5/2024 issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, which enhanced the monetary limits for filing appeals before various authorities, including the ITAT and High Courts. This circular was stated to be effective from September 17, 2024.

What were the issues?

1. Whether the appeal, filed by the Revenue, should be permitted to be withdrawn in light of the revised monetary limits for filing appeals as per Circular No. 5/2024, dated 17.09.2024, issued by the Central Board of Indirect Taxes and Customs, which enhances the monetary threshold for appeals before the ITAT to Rs. 60 lakh and before the High Court to Rs. 2 crore? Assessee's contention: The learned counsel for the appellant (Revenue) submitted that in terms of Circular No. 5/2024, the monetary limits for filing appeals have been enhanced. The appellant's counsel prayed for the withdrawal of the present appeal, stating that the case does not fall within the exception clause of the said Circular. Revenue's contention: The Revenue argued that the revised monetary limits are applicable and that the present appeal, if it falls below the new threshold (though not explicitly stated if it does), should be withdrawn. The Revenue relied on Circular No. 5/2024 and Circular No. 09/2024 (which appears to be a typo and likely refers to the same circular or a related one).

AI-generated summary — verify with the full judgment below

206

I Principal Com

Prabhu Dayal Aurangabad

CORAM: H

Present M

SANJEEV P 1.

C bearing No.9 Ministry of F Taxes and C department b Supreme Cou amended and litigations: “ d a a S 1 IN THE HIGH COURT OF PUN AT CHANDIGA I D mmissioner of Income Tax (Cent

Vs. l Memorial Religious & Educati

HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN Mr. Varun Issar, Sr. Standing Co Mr. Sanjeev K. Sharma, Advocat Mr. Deepak Aggarwal, Advocate ***

RAKASH SHARMA, J.(Oral) Counsel for the appellant submi /2024 dated 17.09.2024, issued Finance, Department of Reven ustoms, the monetary limits fo before the ITAT, High Court urt have been enhanced and th d following steps have been tak “ 2. As a step towards manage decided by the Board to revise t appeals in Income-tax cases a aforementioned Circular as follo Sr. No. Appeals/SLPs in Incom ters 1. Before Income Tax App NJAB AND HARYANA ARH ITA-401-2016 (O&M) Date of Decision: 18.10.2024 tral), Gurgaon …Appellant ional Association, Village Sarai

…Respondent NJEEV PRAKASH SHARMA NJAY VASHISTH ounsel for the appellant. te for e for the respondent.

) its that in terms of the Circular d by the Government of India, nue, Central Board of Indirect or filing of the appeals by the and SLPs/Appeals before the e Circular No.5/2024 has been ken with the purpose to manage ement of litigation, it has been the monetary limits for filing of as stated in Para 4.1 of the ows: me-tax mat- Monetary Limit (Tax effect in Rs.) pellate Tri- 60 lakh

i r , t e e n e n f e RAJESH KUMAR 2024.10.21 14:46 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

ITA-401-2016 (O&M)

[2]

bunal 2. Before High Court 2 crore 3. Before Supreme Court 5 crore

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.”

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 misc. application(s) also stand disposed of.

(SANJEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH)

JUDGE 18.10.2024 rajesh

Whether speaking/reasoned? : Yes/No 2. Whether reportable?

: Yes/No

RAJESH KUMAR 2024.10.21 14:46 I attest to the accuracy and authenticity of this order/judgment. Punjab & Haryana High Court, Chandigarh.

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