The Pr. Commissioner Of Income Tax I vs. Shri Satyendra Kumar Singh

ITA/229/2023HC 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Circular No. 5/2024, issued on March 15, 2024, and subsequently amended by Circular No. 9/2024 on September 17, 2024, superseded the earlier Circular No. 3/2018 and Circular No. 17/2019. The Court noted that the later circulars do not provide for exception clause 10(C), which allowed filing appeals notwithstanding the tax effect being below monetary limits. Therefore, based on the superseding circulars, the appeal, with a tax effect of Rs. 2,85,000, did not meet the criteria for entertainability. The appeal was dismissed on this ground. However, the Court clarified that the question of law raised in the appeal would remain open, and the appellant (Revenue) would be 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 260A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal (ITAT), Indore, dated July 29, 2022. The sole issue 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 was Rs. 2,85,000. The respondent, Shri Satyendra Kumar Singh (assessee), was not represented. The High Court noted that subsequent CBDT Circulars, specifically No. 5/2024 and No. 9/2024, superseded earlier circulars and did not provide for exception clause 10(C).

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court under exception Clause 10(C) of CBDT Circular No. 3/2018, given that the tax effect of Rs. 2,85,000 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 was entertainable under exception Clause 10(C) of CBDT Circular No. 3/2018. The Revenue relied on CBDT Circular No. 3/2018, dated July 11, 2018, which specified monetary limits for filing appeals and provided exceptions. The Revenue implicitly argued that the conditions for filing an appeal under the exception clause were met.

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 11th OF FEBRUARY, 2025 INCOME TAX APPEAL No. 229 of 2023 THE PR. COMMISSIONER OF INCOME TAX I Versus SHRI SATYENDRA KUMAR SINGH 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.25/IND/2022 dated 29/07/2022. 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.2,85,000/-, 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-229-2023 NEUTRAL CITATION NO. 2025:MPHC-IND:3588 Signed by: HEMANT SARAF Signing time: 20-02-2025 14:10:59 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-229-2023 NEUTRAL CITATION NO. 2025:MPHC-IND:3588 Signed by: HEMANT SARAF Signing time: 20-02-2025 14:10:59 Signature Not Verified

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