PR. COMMISSIONER OF INCOME TAX LUDHIANA vs. M/S GEE CITY BUILDERS LTD

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ITA/65/2020HC Punjab & HaryanaPHHC01000396202003 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 monetary limits for filing appeals before the High Court were enhanced to Rs. 2 crore, effective from 17.09.2024, as per Circular No. 9/2024. The court observed that the present appeal was filed after this date and did not fall under any exception that would require it to be decided on merits irrespective of the monetary limit. Consequently, the court permitted the withdrawal of the appeal as prayed by the Revenue. All pending applications were also dismissed as withdrawn. The ratio decidendi is that appeals filed by the Revenue before the High Court, after the effective date of Circular No. 9/2024, are subject to the revised monetary limits, and if the tax effect is below the enhanced limit, withdrawal can be permitted.

What were the facts?

This case involves an appeal filed by the Revenue (Pr. Commissioner of Income Tax, Ludhiana) against M/s Gee City Builders Ltd. The appeal was filed before the High Court of Punjab and Haryana at Chandigarh. The procedural history relevant to this judgment is the issuance of Circular No. 9/2024 by the Central Board of Direct Taxes, Ministry of Finance, Government of India, dated 17.09.2024. This circular revised the monetary limits for filing appeals by the department before the Income Tax Appellate Tribunal (ITAT), High Court, and Supreme Court, with the objective of managing litigation. The revised monetary limit for appeals before the High Court was set at Rs. 2 crore.

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 before the High Court, considering the appeal was filed after the effective date of the circular. Assessee's Contention: The assessee (Revenue) argued that in terms of Circular No. 9/2024, the monetary limits for filing appeals have been enhanced. They submitted that the revised monetary limits came into effect from 17.09.2024 and apply to appeals to be filed before the Supreme Court, High Court, and Tribunal. They further contended that the present appeal does not fall within the exception clause of Circular No. 5/2024, which mandates that appeals shall be taken on merits without regard to monetary limits. Therefore, they prayed for the withdrawal of the present appeal. Revenue's Contention: The judgment does not record any specific argument from the Revenue against the withdrawal of the appeal based on the circular.

AI-generated summary — verify with the full judgment below

ITA-65-2020 (O 136 IN T

PR. COMMISS M/S GEE CITY 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

SIONER OF INCOME TAX LUD Vs. Y BUILDERS 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-65-2020 (O&M) Date of Decision: 03.10.2024 DHIANA . . . . 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-65-2020 (O r in 1 5 s th 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 rega he 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 apord to the tax effect and 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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