PR. COMMISSIONER OF INCOME TAX-1 vs. SMT. RATAN NAGORI

ITA/19/2025HC Rajasthan2025:RJ-JD:43989-DB07 October 2025Bench: PUSHPENDRA SINGH BHATI, ANUROOP SINGHI2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court, while acknowledging that the case technically fell within the exception recognized under the CBDT Circulars, opted to dismiss the appeal. The Court reasoned that in view of the insignificant tax effect (Rs. 1,11,136/-) and the overall policy of reducing unnecessary litigation, it would be appropriate to close the present appeal. The Court explicitly stated that the dismissal was without entering into the merits of the controversy. The substantial question of law proposed by the appellant was kept open for consideration in a more appropriate case where the factual matrix or tax effect justifies judicial examination. The dismissal was based solely on the aforementioned circulars and the policy of reducing litigation.

What were the facts?

The appellant, Pr. Commissioner of Income Tax-1, Jodhpur, filed an appeal before the Rajasthan High Court at Jodhpur against an order concerning Smt. Ratan Nagori. The appeal was filed for the assessment year(s) not specified in the judgment. The core issue revolved around alleged organized tax evasion involving bogus capital gain/loss entries. The tax effect in dispute was Rs. 1,11,136/-. The appellant sought to argue that this case fell under an exception to the monetary limits for filing appeals, as prescribed by CBDT Circular No. 05/2024.

What were the issues?

1. Whether the present appeal, with a tax effect of Rs. 1,11,136/-, is maintainable before the High Court despite being below the prescribed monetary limit of Rs. 2,00,00,000/- for filing appeals, as per CBDT Circular No. 09/2024 and Circular No. 05/2024. Assessee's Contention (Appellant - Pr. Commissioner of Income Tax-1, Jodhpur): The appellant contended that the issue under consideration pertains to organized tax evasion and involves bogus capital gain/loss entries, thereby falling under exception (h) of paragraph 3.1 of CBDT Circular No. 05/2024, which allows for appeals even if the tax effect is below the monetary limit. Revenue's Contention: No specific contention was recorded for the revenue in the judgment.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

[2025:RJ-JD:43989-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 19/2025 Pr. Commissioner Of Income Tax-1, Jodhpur ----Appellant Versus Smt. Ratan Nagori W/o Sh. Mangi Lal Agarwal, Juni Dhan Mandi, Punch Mandiro Ki Gali, Nr. Sarafa Bazar, Jodhpur. ----Respondent For Appellant(s) : Mr. Kamal Kishore Bissa For Respondent(s) : HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI HON'BLE MR. JUSTICE ANUROOP SINGHI Order 07/10/2025 1. Learned counsel for the appellant has drawn the attention of this Court to the proposed suggested substantial question of law arising in the present appeal. 2. This Court has perused CBDT Circular No.09/2024 dated 17.09.2024, which prescribes monetary limits for filing departmental 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. (Uploaded on 10/10/2025 at 05:46:32 PM) (Downloaded on 27/10/2026 at 11:16:02 PM)

[2025:RJ-JD:43989-DB] (2 of 2) [ITA-19/2025] 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. 6. Accordingly, the appeal is dismissed without entering into the merits of the controversy. 7. It is clarified that the substantial question of law as proposed by the appellant is kept open and the dismissal of this appeal shall not preclude the appellant from raising the same in an appropriate matter where the factual matrix or tax effect justifies judicial examination as the merits of the case have not been considered, as the dismissal is based solely on the aforementioned circular. (ANUROOP SINGHI),J (DR. PUSHPENDRA SINGH BHATI),J 43-Sudheer/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 10/10/2025 at 05:46:32 PM) (Downloaded on 27/10/2026 at 11:16:02 PM)

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