Income Tax Department vs. M/S Rajshree Fibers

ITA/33/2020HC Madhya Pradesh07 August 2025Bench: HON'BLE SHRI JUSTICE VIVEK RUSIA2 pages

For Petitioner: Vashistha Narayan Dubey

AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the prayer of the appellant. The Court noted that the tax effect involved in the appeal was below the enhanced monetary limit of Rs. 2,00,00,000/- for filing appeals by the Department before the High Court, as stipulated by CBDT Circular No. 09 of 2024 dated 17th September, 2024. Consequently, the appeal was dismissed as withdrawn. The application for condonation of delay (IA No. 129 of 2021) and any pending interlocutory applications were also disposed of.

What were the facts?

The Income Tax Department (appellant) filed Income Tax Appeal No. 33 of 2020 before the High Court of Madhya Pradesh at Indore against M/s. Rajshree Fibers (respondent). The appeal was filed against an order or action by an unspecified authority for an unspecified assessment year. The tax effect involved in the appeal was below the enhanced monetary limit for filing appeals by the Department before the High Court, which was set at Rs. 2,00,00,000/- by CBDT Circular No. 09 of 2024 dated 17th September, 2024. An application for condonation of delay (IA No. 129 of 2021) was also filed.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the tax effect involved, in light of the CBDT Circular No. 09 of 2024. The appellant, Income Tax Department, argued that the tax effect in the present appeal is below the enhanced monetary limit of Rs. 2,00,00,000/- for filing appeals before the High Court, as per CBDT Circular No. 09 of 2024. Therefore, it prayed for withdrawal of the appeal. The respondent, M/s. Rajshree Fibers, did not record any arguments in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BEFORE HON'BLE SHRI JUSTICE VIVEK RUSIA & HON'BLE SHRI JUSTICE BINOD KUMAR DWIVEDI ON THE 7th OF AUGUST, 2025 INCOME TAX APPEAL No. 33 of 2020 INCOME TAX DEPARTMENT Versus M/S. RAJSHREE FIBERS Appearance: Appellant - Income Tax Department, Indore by Mr. Shantanu Sharma - Senior Standing Counsel along with Ms. Yashika Bondwal - Advocate. Respondent - assessee by Mr. Arun Dwivedi - Advocate appearing on behalf of Mr. Gagan Tiwari - advocate. ORDER Per: Justice Vivek Rusia Learned Senior Standing Counsel appearing for the appellant - Income Tax Department, Indore submits that vide circular No.09 of 2024 dated 17th September, 2024 of Central Board of Direct Taxes, New Delhi, the monetary limit for filing of appeal (s) by the Department before the High Court is enhanced to Rs.2,00,00,000/- (Rupees Two Crores Only), whereas the tax effect involved in the present appeal is below than the enhanced limit of rupees two crores, hence prays for withdrawal of this appeal. 2. Prayer is allowed. 3. Accordingly, the present Income Tax Appeal is dismissed as 1 ITA-33-2020 NEUTRAL CITATION NO. 2025:MPHC-IND:21117 Signed by: RAMESH CHANDRA PITHAWE Signing time: 8/7/2025 5:25:49 PM Signature Not Verified

(VIVEK RUSIA) JUDGE (BINOD KUMAR DWIVEDI) JUDGE withdrawn. IA No.129 of 2021, an application for condonation of 50 days delay in filing the present appeal stands disposed off. Pending interlocutory application, if any, also stands disposed off. rcp

2 ITA-33-2020 NEUTRAL CITATION NO. 2025:MPHC-IND:21117 Signed by: RAMESH CHANDRA PITHAWE Signing time: 8/7/2025 5:25:49 PM Signature Not Verified

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