Pr Commissioner Of Income Tax I vs. Shri Ashok Rao Thorat

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ITA/228/2023HC 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 observed that CBDT Circular No. 5/2024, which was later amended by Circular No. 9/2024, supersedes the earlier circulars dated 11/07/2018 and 08/08/2019. Crucially, the latest circulars do not provide for an exception clause like 10(C) that would permit filing an appeal despite the tax effect being below the stipulated monetary limits. Therefore, based on the prevailing circulars, the appeal did not meet the criteria for maintainability. The Court dismissed the appeal on this ground. However, the question of law raised in the appeal was expressly left open, and the appellant was granted 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 before the High Court of Madhya Pradesh at Indore against an order passed by the Income Tax Appellate Tribunal (ITAT), Indore. The ITAT's order was dated 20/09/2022 in ITA No.91/IND/2022. The core issue revolved around the maintainability of the Revenue's appeal before the High Court under Clause 10(C) of CBDT Circular No.3/2018. The tax effect in the case was Rs.3,12,000, which was below the monetary limits stipulated in subsequent CBDT Circulars No. 17/2019 and No. 5/2024.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before this Court under Clause 10(C) of CBDT Circular No.3/2018, notwithstanding that the tax effect involved (Rs.3,12,000) is below the monetary limits prescribed by subsequent CBDT Circulars No. 17/2019 and No. 5/2024? Assessee (Revenue): The Revenue contended that the appeal is maintainable under Clause 10(C) of CBDT Circular No.3/2018, which provides an exception to the monetary limits for filing appeals. The Revenue relied on the existence of this exception clause in the earlier circular. Revenue (Respondent): No arguments were recorded for the respondent (Shri Ashok Rao Thorat) as none appeared.

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. 228 of 2023 PR COMMISSIONER OF INCOME TAX I Versus SHRI ASHOK RAO THORAT 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.91/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.3,12,000/-, 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-228-2023 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-228-2023 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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