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

ITA/230/2023HC 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 was not maintainable. The Court observed that CBDT Circular No. 5/2024, dated 15/03/2024, which was later amended by Circular No. 9/2024 dated 17/09/2024, superseded the earlier circulars of 11/07/2018 and 08/08/2019. Crucially, the Court noted that the latest circular did not provide for an exception clause (like 10(C)) that would allow an appeal to be filed notwithstanding that the tax effect was less than the monetary limits. Therefore, based on the superseding circulars and the absence of a relevant exception, the appeal was dismissed. However, the Court granted liberty to the appellant (Revenue) to file an application if the cause of action survives as per law, and the question of law raised in the appeal was expressly left open.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, before the High Court of Madhya Pradesh, Indore. The appeal challenged an order passed by the Income Tax Appellate Tribunal (ITAT), Indore, in ITA No.92/IND/2022 dated 20/09/2022. The core issue revolved around the entertainability of the Revenue's appeal before the High Court under exception Clause 10(C) of CBDT Circular No.3/2018 dated 11/07/2018. The tax effect involved in the case was Rs.8,21,000/, which was below the monetary limits specified in subsequent CBDT Circulars No. 17/2019 and 5/2024.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before this Court under exception Clause 10(C) of CBDT Circular No.3/2018 dated 11/07/2018, considering the tax effect involved is below the prescribed monetary limits. Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue contended that the appeal should be entertained under exception Clause 10(C) of CBDT Circular No.3/2018. They relied on the fact that the tax effect of Rs.8,21,000/ was involved. The Revenue implicitly argued that the subsequent circulars did not negate the exception clause for appeals filed prior to their issuance or that the exception clause was still applicable. The Revenue's appeal was filed under Section 260A of the Income Tax Act, 1961.

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. 230 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.92/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.8,21,000/-, 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-230-2023 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-230-2023 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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