The Pr. Commissioner Of Income Tax I vs. M.P. Police Sakh Sahkari Sanstha Maryadit

ITA/227/2023HC Madhya Pradesh08 April 2024Bench: 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's reasoning was based on CBDT Circular No. 17 of 2019, which stipulates that no appeal shall be filed before the High Court where the tax effect is below Rs. 1 Crore. Since the tax effect in this case was nil, the appeal did not meet the prescribed monetary limit for filing. Therefore, the appeal was dismissed at the admission stage itself. The Court clarified that the department would be free to pursue the issue raised in this case in appropriate proceedings where the tax limit exceeds the minimum prescribed limit. No specific finding was made on the merits of the original dispute before the ITAT.

What were the facts?

The Principal Commissioner of Income Tax, Indore (the Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 20.12.2022 passed by the Income Tax Appellate Tribunal (ITAT), Bench Indore. The appeal pertained to Assessment Year 2017-18 and was filed against M.P. Police Sakh Sahkari Sanstha Maryadit, Ujjain (the Assessee). The Revenue's counsel stated that the department decided to file the appeal on merits, despite the tax effect being nil. The High Court noted that according to CBDT Circular No. 17 of 2019, appeals are not to be filed before the High Court if the tax effect is below Rs. 1 Crore.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the tax effect is nil and below the monetary limit prescribed by CBDT Circular No. 17 of 2019? (Question of law) The Revenue contended that the issue needs to be decided on merits, and therefore, the department took a decision to file the appeal even though the tax effect was nil. The Revenue relied on the fact that the issue required adjudication. The Revenue did not explicitly cite any specific authorities or precedents in support of their argument for maintaining the appeal on merits despite the low tax effect. The judgment records no argument for the Assessee.

Which sections of the Income-tax Act were involved?

Section 260A

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 8th OF APRIL, 2024 INCOME TAX APPEAL No. 227 of 2023 BETWEEN:- THE PR. COMMISSIONER OF INCOME TAX I AAYKAR BHAWAN WHITE CHURCH ROAD, INDORE (MADHYA PRADESH) .....APPEAL (MS. VEENA MANDLIK, LEARNED COUNSEL FOR THE APPELLANT) AND M.P. POLICE SAKH SAHKARI SANSTHA MARYADIT DEWAS ROAD NAGZHIRI UJJAIN 456010 PAN AABAM5551C (MADHYA PRADESH) .....RESPONDENT (NONE) This appeal coming on for admission this day, Justice Sushrut Arvind Dharmadhikari passed the following: ORDER Heard on the question of admission. The present appeal under Section 260A of the Income Tax Act, 1961 has been filed being dissatisfied with the order dated 20.12.2022, passed by the Income Tax Appellate Tribunal(ITAT), Bench Indore in ITA No.119/Ind/2022 for the Assessment Year, 2017-18. 2. In view of the Circular No.17 of 2019 issued by the CBDT, New Delhi in respect of monetary limits for filing of appeals by Income Tax Department 1 Signed by: PREETHA HARI NAIR Signing time: 10-04-2024 18:09:54 Signature Not Verified (S. A. DHARMADHIKARI) JUDGE (GAJENDRA SINGH) JUDGE before the ITAT, High Courts and SLPs/appeals before the Supreme Court which provides that no appeal shall be filed before the High Court wherein the tax effect/monetary limit is below Rs.1 Crore. 3. Learned counsel for the appellant submitted that the issue needs to be decided on merits. Therefore, the department has taken a decision to file this appeal even though the tax effect is nil. 4. According to CBDT Circular, no case is required to be filed where the monetary limit is below Rs.1 Crore, therefore, this appeal is not maintainable. Accordingly, the same is dismissed at the admission stage itself. 5. However, the department would be free to assail the issue raised in this case in appropriate proceedings where the tax limit is more than the minimum prescribed limit.

pn 2 Signed by: PREETHA HARI NAIR Signing time: 10-04-2024 18:09:54 Signature Not Verified

Recent GST High Court judgments

Search GST case law →