The Pr. Commissioner Of Income Tax I vs. M/S M.P. Paschim Kshetra Vidyut Vitran Co. Ltd.

ITA/66/2024HC 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 noted that CBDT Circular No. 5/2024, which was later amended by Circular No. 9/2024, supersedes the earlier Circulars dated 11/07/2018 and 08/08/2019. Crucially, the subsequent circulars do not provide for an exception clause (like 10(C)) that would permit filing an appeal despite the tax effect being below the specified monetary limits. Therefore, based on the prevailing circulars at the time of consideration, the appeal was dismissed for non-maintainability. However, the Court granted liberty to the appellant (Revenue) to file an application if the cause of action survives as per law, and the questions of law raised in the appeal were 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, challenging an order passed by the Income Tax Appellate Tribunal (ITAT), Indore. The appeal concerns ITA No.103/IND/2021 dated 30/08/2023. The core issue is the entertainability of the Revenue's appeal before the High Court, specifically under exception Clause 10(C) of CBDT Circular No.3/2018. The tax effect involved in the case is Rs.1.54 Crores, which is below the monetary limits stipulated in CBDT Circular No. 17/2019 and CBDT Circular No. 5/2024.

What were the issues?

1. Whether the appeal filed by the Revenue is entertainable before this Court under exception Clause 10(C) of CBDT Circular No.3/2018, notwithstanding that the tax effect involved (Rs.1.54 Crores) is below the monetary limits specified in subsequent CBDT Circulars (No. 17/2019 and No. 5/2024)? Assessee's Contention: The judgment does not record any specific arguments made by the assessee, M/s M.P. Paschim Kshetra Vidyut Vitran Co. Ltd. Revenue's Contention: The Revenue contended that the appeal should be entertained, likely arguing for the applicability of exception Clause 10(C) of CBDT Circular No.3/2018, despite the tax effect being below the general monetary limits. The Revenue relied on the existence of an exception clause in the earlier circular.

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. 66 of 2024 THE PR. COMMISSIONER OF INCOME TAX I Versus M/S M.P. PASCHIM KSHETRA VIDYUT VITRAN CO. LTD. 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.103/IND/2021 dated 30/08/2023. 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.1.54 Cr., 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-66-2024 NEUTRAL CITATION NO. 2025:MPHC-IND:3601 Signed by: HEMANT SARAF Signing time: 20-02-2025 12:47:52 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-66-2024 NEUTRAL CITATION NO. 2025:MPHC-IND:3601 Signed by: HEMANT SARAF Signing time: 20-02-2025 12:47:52 Signature Not Verified

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