The Pr. Commissioner Of Income Tax I vs. M/S Madhuram Pulses Pvt. Ltd.

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ITA/200/2023HC Madhya Pradesh11 February 2025Bench: HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI2 pages
For Petitioner: Veena Mandlik
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue is not maintainable. The Court noted that the tax effect of Rs. 35,000 was below the monetary limits specified in CBDT Circular No. 17/2019 and CBDT Circular No. 5/2024. Furthermore, the Court observed that CBDT Circular No. 9/2024, issued on September 17, 2024, superseded the earlier circulars dated July 11, 2018, and August 8, 2019. Crucially, the latest circular (No. 9/2024) does not provide an exception clause similar to 10(C) of the earlier circular, which allowed filing appeals notwithstanding the tax effect being below the monetary limits. Therefore, based on the superseding circular and the absence of an applicable exception, the appeal was dismissed. The Court, however, clarified that the question of law raised in the appeal would remain open, and the appellant is at liberty to file an application if the cause of action survives as per law.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed an appeal under Section 260(A) of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal (ITAT), Indore, dated September 20, 2022. The sole dispute in this appeal concerns the entertainability of the Revenue's appeal before the High Court under Exception Clause 10(C) of CBDT Circular No. 3/2018. The tax effect involved in the case is Rs. 35,000, which is below the monetary limits prescribed by CBDT Circular No. 17/2019 and CBDT Circular No. 5/2024. The respondent, M/s Madhuram Pulses Pvt. Ltd. (Assessee), was not represented.

What were the issues?

1. Whether the appeal filed by the Revenue is entertainable before this Court under Exception Clause 10(C) of CBDT Circular No. 3/2018, given that the tax effect of Rs. 35,000 is below the monetary limits specified in subsequent CBDT Circulars (No. 17/2019 and No. 5/2024)? Assessee's Contentions: Not recorded as none appeared. Revenue's Contentions: The Revenue contended that the appeal is maintainable under Exception Clause 10(C) of CBDT Circular No. 3/2018, despite the tax effect being below the monetary limits, implying reliance on the specific exception provided in that circular. The Revenue also referred to subsequent circulars, including Circular No. 9/2024 dated 17/09/2024, which superseded earlier circulars.

Which sections of the Income-tax Act were involved?

Section 260(A)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BEFORE HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI & HON'BLE SHRI JUSTICE GAJENDRA SINGH ON THE 11th OF FEBRUARY, 2025 INCOME TAX APPEAL No. 200 of 2023 THE PR. COMMISSIONER OF INCOME TAX I Versus M/S MADHURAM PULSES PVT. LTD. Appearance: Shri Harsh Parashar - senior standing counsel with Shri Shantanu Sharma - counsel for the appellant. None for the respondent. ORDER Per: Justice Sushrut Arvind Dharmadhikari The instant appeal under Section 260(A) of the Income Tax Act, 1961 has been preferred by the appellant being aggrieved by the order passed by learned Income Tax Appellate Tribunal, Indore, in ITA No.82/IND/2022 dated 20/09/2022. The only controversy seems to be involved in the case as to whether the appeal filed by the Revenue would be entertainable before this Court under exception Clause 10(C) of CBDT Circular No.3/2018 dated 11/07/2018. Admittedly, the tax effect involved in the case is Rs.35,000/-, which is below the monetary limit as specified in the Circular No. 17/2019 dated 08/08/2019 and CBDT Circular No. 5/2024 dated 15/03/2024. 1 ITA-200-2023 NEUTRAL CITATION NO. 2025:MPHC-IND:3588 Signed by: HEMANT SARAF Signing time: 20-02-2025 12:47:52 Signature Not Verified

(SUSHRUT ARVIND DHARMADHIKARI) JUDGE (GAJENDRA SINGH) JUDGE On perusal of the Circular dated 15/03/2024, which was later on, amended by Circular No. 9/2024 dated 17/09/2024 issued by CBDT supersedes the Circular dated 11/07/2018 and 08/08/2019, it is seen that it does not provide exception clause i.e. 10(C), wherein the appeal can be filed notwithstanding that the tax effect entailed is less than the monetary limits under the exceptions given. In view of above, the appeal is not maintainable. Accordingly, same is hereby dismissed. However, the question of law raised in this appeal shall remain open and the appellant would be at liberty to file application, in case cause of action survives as per law. HS

2 ITA-200-2023 NEUTRAL CITATION NO. 2025:MPHC-IND:3588 Signed by: HEMANT SARAF Signing time: 20-02-2025 12:47:52 Signature Not Verified

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