Income Tax Department vs. M/S. Narmada Malwa Gramin Bank

ITA/1/2021HC Madhya Pradesh22 July 2025Bench: HON'BLE SHRI JUSTICE VIVEK RUSIA1 pages

For Petitioner: Vashistha Narayan Dubey

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal allowed the prayer for withdrawal of the appeal. The reasoning was based on the submission made by the learned counsel for the appellant (Income Tax Department) that the tax effect involved in the appeal (approximately Rs. 1.96 Crores) was below the enhanced monetary limit of Rs. 2 Crores for filing appeals before the High Court, as per CBDT Circular No. 09/2024 dated 17th September 2024. Consequently, the appeal was dismissed as withdrawn. No specific issue was decided on merits, and no operative directions were issued other than the dismissal of the appeal.

What were the facts?

The Income Tax Department (appellant) filed Income Tax Appeal No. 1 of 2021 before the High Court of Madhya Pradesh at Indore against M/s. Narmada Malwa Gramin Bank (respondent). The appeal was filed challenging an order or action by an unspecified authority for an unspecified assessment year. The tax effect involved in the appeal was approximately Rs. 1.96 Crores. The appeal was listed for hearing on July 22, 2025.

What were the issues?

1. Whether the appeal filed by the appellant (Income Tax Department) is maintainable before the High Court given the monetary limit for filing appeals. (Question of law, turning on CBDT Circular No. 09/2024). Contentions: Assessee (Income Tax Department): The learned counsel for the appellant submitted that the monetary limit for filing appeals by the Department before the High Court has been enhanced to Rs. 2 Crores vide Circular No. 09/2024 dated 17th September 2024 of the Central Board of Direct Taxes. Since the tax effect involved in the present appeal is approximately Rs. 1.96 Crores, which is below the enhanced limit of Rs. 2 Crores, the appellant prays for withdrawal of the appeal. Revenue: No arguments were recorded for the revenue.

AI-generated summary — verify with the full judgment below

(VIVEK RUSIA) JUDGE (BINOD KUMAR DWIVEDI) JUDGE IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BEFORE HON'BLE SHRI JUSTICE VIVEK RUSIA & HON'BLE SHRI JUSTICE BINOD KUMAR DWIVEDI ON THE 22nd OF JULY, 2025 INCOME TAX APPEAL No. 1 of 2021 INCOME TAX DEPARTMENT Versus M/S. NARMADA MALWA GRAMIN BANK Appearance: Shri Harsh Parashar - Advocate for appellant. ORDER Per: Justice Vivek Rusia Learned counsel for the appellant submits that vide Circular No.09/2024, dated 17th September, 2024 of Central Board of Direct Taxes, New Delhi, the monetary limit for filing of appeals by the Department before the High Court is enhanced to Rs.2 Crores, whereas the tax effect involved in the present appeal is only Rs.1.96 Crores approximately, which is below than the enhanced limit of Rs.2 Crores, hence learned counsel prays for withdrawal of the appeal. Prayer is allowed. Accordingly, the Income Tax Appeal is dismissed as withdrawn. Tej

1 ITA-1-2021 NEUTRAL CITATION NO. 2025:MPHC-IND:18964 Signed by: TEJPRAKASH VYAS Signing time: 7/22/2025 5:36:42 PM Signature Not Verified

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