Principal vs. M/S Bansal Construction Works

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ITA/62/2023HC Madhya Pradesh22 November 2024Bench: 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 relied on the amended Circular No. 09/2024 issued by the CBDT, dated 17/09/2024, which states that no appeal shall be filed before the High Court where the tax effect/monetary limit is below Rs. 2.0 Crore. Consequently, the appeal was dismissed at the admission stage itself. The Court also noted that the department would be free to assail the issue raised in this case in appropriate proceedings where the tax limit is more than the minimum prescribed limit. No decision was made on the merits of the case.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed an appeal under Section 260-A of the Income Tax Act, 1961, before the High Court of Madhya Pradesh at Jabalpur. The appeal was against an order dated 19/10/2022 passed by the Income Tax Appellate Tribunal (ITAT), Bench Indore, in I.T.(SS)A. No. 22/Ind/2021 and Cross Objection No.29/Ind/2021 for the assessment year 2012-2013. The assessee is M/s Bansal Construction Works. The appeal was heard on the question of admission.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court in light of the amended CBDT Circular No. 09/2024 dated 17/09/2024, which stipulates a monetary limit of Rs. 2.0 Crore for filing appeals before the High Court. Assessee's Contention: The Revenue argued that the appeal is not maintainable due to the tax effect being below the prescribed monetary limit of Rs. 2.0 Crore as per the amended CBDT Circular No. 09/2024. The Revenue stated that the appeal is dismissed at the admission stage itself on this ground. Revenue's Contention: The Revenue's counsel submitted that the issue needs to be decided on merits and that the department had taken a decision to file the appeal even though the tax effect was nil. However, the Court ultimately dismissed the appeal based on the circular.

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 JABALPUR BEFORE HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI & HON'BLE SMT. JUSTICE ANURADHA SHUKLA ON THE 22nd OF NOVEMBER, 2024 INCOME TAX APPEAL No. 62 of 2023 PRINCIPAL Versus M/S BANSAL CONSTRUCTION WORKS Appearance: SHRI H.S. GUPTA - ADVOCATE FOR THE APPELLANT. SHRI kAMAL KHEMUKA - ADVOCATE FOR THE REWSPONDENT. ORDER Per: Justice Sushrut Arvind Dharmadhikari Heard on the question of admission. The present appeal under Section 260-A of the Income Tax Act, 1961 has been filed being dissatisfied with the order dated 19/10/2022 passed by the Income Tax Appellate Tribunal (ITAT), Bench Indore in I.T.(SS)A. No. 22/Ind/2021 and Cross Objection No.29/Ind/2021 for the assessment year 2012-2013. 2. In view of amended Circular No. 09/2024 dated 17/09/2024 issued by the CBDT, New Delhi in respect of monetary limits for filing of appeals by Income Tax Department before the ITAT, High Courts and SLPs/appeals before the Supreme Court, which provides that no appeal shall be filed before the High Court, wherein the tax effect/monetary limit is below Rs.2.0 Crore. 1 ITA-62-2023 NEUTRAL CITATION NO. 2024:MPHC-JBP:57395 Signed by: SANTOSH KUMAR TIWARI Signing time: 11/25/2024 5:40:03 PM Signature Not Verified

(SUSHRUT ARVIND DHARMADHIKARI) JUDGE (ANURADHA SHUKLA) JUDGE 3. Learned counsel for the appellant submitted that the issue needs to be decided on merits. Therefore, the department has taken a decision to file this appeal even though the tax effect is nil. 4. According to amended Circular No.09/2024 issued by the CBDT, New Delhi dated 17/09/2024, no case is required to be filed, where the monetary limit is below Rs. 2.0 Crore, therefore, this appeal is not maintainable. Accordingly, the same is dismissed at the admission stage itself. 5. However, the department would be free to assail the issue raised in this case in appropriate proceedings, where the tax limit is more than the minimum prescribed limit. skt

2 ITA-62-2023 NEUTRAL CITATION NO. 2024:MPHC-JBP:57395 Signed by: SANTOSH KUMAR TIWARI Signing time: 11/25/2024 5:40:03 PM Signature Not Verified

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