Pr. Commissioner Of Income Tax-1, Bhopal vs. M.S Dbl Ashok Nagar Vidisha Tollways Ltd

ITA/33/2024HC Madhya Pradesh24 January 2025Bench: HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI2 pages

For Petitioner: Siddharth Sharma

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue is not maintainable. The Court noted that CBDT Circular No. 9/2024, dated 17/09/2024, which superseded earlier circulars including No. 3/2018, did not provide for Exception Clause 10(C). This clause allowed appeals to be filed irrespective of the tax effect if certain exceptions were met. Since the latest applicable circular did not contain this exception, the appeal, despite the tax effect being below the general monetary limits, could not be entertained on that ground. The Court dismissed the appeal on the grounds of maintainability. The appellant was granted liberty to file an application if the cause of action survived as per law.

What were the facts?

The Principal Commissioner of Income Tax-1, Bhopal (Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal, Indore, dated 31/07/2023. The appeal concerned M.S DBL Ashok Nagar Vidisha Tollways Ltd (Assessee). The sole controversy revolved around 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 was Rs. 34,63,506, 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 the High Court under Exception Clause 10(C) of CBDT Circular No. 3/2018, notwithstanding that the tax effect involved (Rs. 34,63,506) is below the monetary limits prescribed by subsequent CBDT Circulars No. 17/2019 and 5/2024. Assessee's Argument: The judgment does not record any specific arguments made by the assessee. Revenue's Argument: The Revenue contended that its appeal was entertainable under Exception Clause 10(C) of CBDT Circular No. 3/2018, despite the tax effect being below the stipulated monetary limits.

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 JABALPUR BEFORE HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI & HON'BLE SMT. JUSTICE ANURADHA SHUKLA ON THE 24th OF JANUARY, 2025 INCOME TAX APPEAL No. 33 of 2024 PR. COMMISSIONER OF INCOME TAX-1, BHOPAL Versus M.S DBL ASHOK NAGAR VIDISHA TOLLWAYS LTD Appearance: Shri Siddharth Sharma - learned Standing Counsel for the appellant. Shri Sumit Nema - learned Senior Counsel with Shri Ayush Gupta - Advocate 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 IT(SS) A No. 146/IND/2020 dated 31/07/2023. 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.34,63,506/-, 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. 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 supercedes the Circular dated 11/07/2018 and 08/08/2019, it is seen that it does not provide exception 1 ITA-33-2024 NEUTRAL CITATION NO. 2025:MPHC-JBP:3846 Signed by: SANTOSH KUMAR TIWARI Signing time: 1/27/2025 6:10:13 PM Signature Not Verified

(SUSHRUT ARVIND DHARMADHIKARI) JUDGE (ANURADHA SHUKLA) JUDGE 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 dismised. However, the appellant would be at liberty to file application, in case cause of action survives as per law. skt

2 ITA-33-2024 NEUTRAL CITATION NO. 2025:MPHC-JBP:3846 Signed by: SANTOSH KUMAR TIWARI Signing time: 1/27/2025 6:10:13 PM Signature Not Verified

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