THE DEPUTY COMMISSIONER OF INCOME TAX, vs. SHRI SANTOSH JAIN

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TAXC/113/2023HC ChhattisgarhCGHC01018615202314 October 2024Bench: HON'BLE SHRI JUSTICE SANJAY K. AGRAWAL,HON'BLE SHRI JUSTICE AMITENDRA KISHORE PRASAD3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the prayer made by the appellant (Revenue) to dispose of the appeals finally in light of the new circular dated 17.09.2024 was fair and reasonable. The Court noted that the monetary limit for filing appeals before the High Court has been enhanced to Rs. 2 Crores. As the tax liability in the present cases was less than this enhanced limit, and in light of paragraph 5 of the circular which allows for withdrawal of pending appeals, the High Court disposed of both Tax Cases as withdrawn. The reasoning was based on the administrative decision to reduce litigation by adhering to the revised monetary limits. No decision on the merits of the original tax dispute was made.

What were the facts?

The appeals were filed by the Deputy Commissioner of Income Tax against Shri Santosh Jain, proprietor of M/s Arihant Mining Co., for Assessment Year 2008-09. The appeals were before the High Court of Chhattisgarh at Bilaspur. The Revenue sought to dispose of both appeals finally, citing a new circular dated 17.09.2024 issued by the Ministry of Finance. This circular enhanced the monetary limit for filing Income Tax Appeals by the department before the High Court to Rs. 2 Crores. The Revenue contended that the tax liability in the present cases was less than this enhanced limit.

What were the issues?

1. Whether the appeals filed by the Revenue before the High Court are to be disposed of in light of the revised monetary limits for filing appeals as per the Circular dated 17.09.2024, given that the tax effect is below the enhanced limit? Assessee's Contention: The assessee, through their counsel, did not present any arguments on the merits of the case. The focus was on the procedural aspect related to the new circular. Revenue's Contention: The Revenue argued that a new circular dated 17.09.2024 has been issued by the Ministry of Finance, enhancing the monetary limit for filing appeals before the High Court to Rs. 2 Crores. Since the tax liability in the present cases is less than Rs. 2 Crores, the appeals may be disposed of finally in light of this circular. The Revenue relied on paragraph 5 of the said circular, which states that it shall apply to pending appeals and such appeals may accordingly be withdrawn.

Which sections of the Income-tax Act were involved?

Section 268A

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2024:CGHC:40277-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 113 of 2023 1 - The Deputy Commissioner Of Income Tax, Cirxcle -3(A), Raipur, Chhattisgarh.

---- Appellant versus 1 - Shri Santosh Jain Prop. M/s Arihant Mining Co., Raipur, Chhattisgarh. ( Pan - Acmpj 5971b, A.Y. 2008-09)

---- Respondent TAXC No. 117 of 2023 1 - The Deputy Commissioner Of Income Tax, Cirxcle-3(1), District : Raipur, Chhattisgarh

---- Appellant Versus 1 - Shri Santosh Jain Prop. M/s Arihant Mining Co., Raipur (C.G.) (Pan- A C M P J5971 B, A.Y. 2008-09), District : Raipur, Chhattisgarh

---- Respondent (Cause-title taken from Case Information System) For Appellant : Mr. Amit Chaudhari, Advocate and Mr. Vijay Chawla, Advocate For Respondent : Ms. Sameeksha Gupta, Advocate Division Bench Hon'ble Shri Justice Sanjay K. Agrawal & Hon'ble Shri Justice Amitendra Kishore Prasad Digitally signed by RAVI SHANKAR MANDAVI

2 / 3 Order on Board (15/10/2024) Sanjay K. Agrawal, J. 1. When case is taken for hearing and learned counsel for the appellant would submit that the Government of India, Ministry of Finance has issued a new circular dated 17.09.2024, in which monetary limits for filing Income Tax Appeals by the department before the High Court has been enhanced to Rs.2 Crores, whereas in the present case the tax liability of assess is less than Rs.2 Crore. Therefore, in light of aforesaid circular dated 17/09/2024, both these appeals may be disposed of finally. 2. The said prayer appears to be fair and reasonable. 3. For ready reference, relevant paragraphs of said circular dated 17/09/2024 is quoted hereinbelow : “1. Reference is invited to Circular No. 5/2024 (F.No.279/Misc.142/2007-ITJ(Pt))dated15.03.2024

of Central Board of Direct Taxes (the 'Board') vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLP/appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular. 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:- S. No. Appeals/SLPs in Income-tax matters Monetary Limit (Tax effect in Rs.) 1. Before Income Tax Appellate Tribunal 60 lakhs 2. Before High Court 2 crore 3. Before Supreme Court 5 crore

3 / 3 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, 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. 4. It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an appeal. 5. The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn. 6. The above may be brought to the notice of all concerned. 7. This issues under section 268A of the Income-tax Act, 1961. 8. Hindi version will follow. ” 4. In view aforesaid submission of learned counsel for the appellant where monetary limit (tax liability) in the present cases are less than Rs.2 Crores therefore, in light of aforesaid circular (Para-5) dated 17/09/2024, both these Tax Cases stands disposed of as withdrawn. Sd/- Sd/- (Sanjay K. Agrawal) (Amitendra Kishore Prasad)

Judge

Judge Ravi Mandavi

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