PR. COMMISSIONER OF INCOME TAX-1 vs. BULAKI RAM BHERJI MISTRY

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ITA/46/2024HC Rajasthan2026:RJ-JD:14258-DB27 March 2026Author: ARUN MONGA, SUNIL BENIWAL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, in respectful agreement with a co-ordinate bench's view, dismissed the appeal. The Court noted that the net tax effect involved was Rs. 54,168/-, which is significantly below the prescribed monetary threshold for filing appeals before the High Court as per CBDT Circular No. 05/2024. The Court held that in view of this circular and the policy of reducing unnecessary litigation, the appellant is under a legal obligation not to press such claims on merits. The question of law raised in the appeal was kept open to be adjudicated in appropriate proceedings in the future. No specific finding was made on the merits of the ITAT's decision.

What were the facts?

The appellant, Pr. Commissioner of Income Tax-1, Jodhpur (Revenue), filed an appeal against a judgment dated 06.06.2024 of the Income Tax Appellate Tribunal (ITAT). The ITAT had allowed the appeal filed by the respondent, Bulaki Ram Bherji Mistry, challenging an order dated 13.02.2023 passed by the CIT(A). The Revenue's appeal was filed within time, overcoming a registry objection of a 5-day delay. The High Court noted a co-ordinate bench's order dated 07.10.2025 in a similar appeal, which dealt with CBDT circulars on monetary limits for filing departmental appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the tax effect involved, considering the CBDT Circular No. 05/2024 and Circular No. 09/2024. (Question of law and fact) Assessee's Contention: Not recorded. Revenue's Contention: The issue under consideration pertains to organized tax evasion and involves bogus capital gain/loss entries, thus falling under exception (h) of paragraph 3.1 of CBDT Circular No. 05/2024, despite the low tax effect. The Revenue relied on CBDT Circular No. 09/2024 and CBDT Circular No. 05/2024.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2026:RJ-JD:14258-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 46/2024 Pr. Commissioner Of Income Tax-1, Jodhpur. ----Appellant Versus Bulaki Ram Bherji Mistry, Nayashahar Bikaner . ----Respondent For Appellant(s) : Mr. Kamal Kishore Bissa For Respondent(s) : HON'BLE MR. JUSTICE ARUN MONGA HON'BLE MR. JUSTICE SUNIL BENIWAL

Order 27/03/2026

1.

Having seen the file, it appears that counted from the date of receipt of copy of the impugned order, the instant appeal was filed within time and therefore the objection of the Registry that the same is time barred by 5 days is overruled. The appeal is taken up for hearing on board today itself.

2.

The present appeal has been filed against the judgment dated 06.06.2024 passed by the Income Tax Appellate Tribunal whereby the appeal filed by the respondent challenging the order dated 13.02.2023 passed by CIT (A) was allowed.

3.

At the very outset, our attention has been drawn to an order dated 07.10.2025 passed by Co-ordinate Bench of this Court in D.B. Income Tax Appeal No. 19/2025. 4. For ready reference, the relevant of Division Bench order, ibid, is reproduced herein below:- “2. This Court has perused CBDT Circular No.09/2024 dated 17.09.2024, which prescribes monetary limits for filing departmental (Uploaded on 28/03/2026 at 02:17:48 PM) (Downloaded on 28/10/2026 at 12:39:53 AM)

[2026:RJ-JD:14258-DB] (2 of 2) [ITA-46/2024] appeals before the Appellate Tribunal, High Courts, and the Hon’ble Supreme Court.

3.

By the said circular, the monetary limits for filing appeals by the department have been enhanced and consequently, the monetary limit (tax effect) for filing an appeal before the Hon’ble High Court is Rs.2,00,00,000/- i.e. no appeal is to be filed before the High Court where the tax effect does not exceed Rs.2,00,00,000/-. However, exceptions to the said monetary limit have been prescribed in paragraph 3.1 of the CBDT circular No.05/2024, dated 15.03.2024. 4. In the present case, the tax effect involved is Rs.1,11,136/-, which is much below the prescribed monetary threshold. However, contention of counsel for the appellant is that the issue under consideration pertains to organized tax evasion and involves bogus capital gain/loss entries, and thus, falls under the exception (h) of paragraph 3.1 of the Circular No.05/2024, dated 15.03.2024. 5. Having considered the submissions and the record, this Court is of the opinion that although the case technically falls within the exception recognized under the Circular, yet, in view of the insignificant tax effect and the overall policy of reducing unnecessary litigation, it would be appropriate to close the present appeal while keeping the substantial question of law open for consideration in a more appropriate case.”

5.

We are in respectful agreement with the view taken therein and in view thereof. Accordingly, we also propose to proceed on the same premise and dismiss the appeal by observing that since the net tax effect involved which is impugned herein is merely a sum of Rs. 54,168/- and thus in view of Circular No. 05/2024 dated 15.03.2024 issued by Central Board of Direct Tax (CBDT), the appellant is also under a legal obligation not to press such claims on merits.

6.

However, the question of law raised in the appeal is kept open to be adjudicated in the appropriate proceedings in future.

7.

Any pending application also stands disposed of. (SUNIL BENIWAL),J (ARUN MONGA),J 14-Devanshi/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 28/03/2026 at 02:17:48 PM) (Downloaded on 28/10/2026 at 12:39:53 AM)

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