PRINCIPAL COMMISSIONER OF INCOME TAX-I vs. PRAKASH CHAND SHARMA

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ITA/1/2021HC RajasthanRJHC02076740202012 May 2022Bench: PRAKASH GUPTA,SAMEER JAIN1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of the clear stipulation in the CBDT Circular dated 17th September 2024, the Income Tax Authorities were under an obligation not to press the appeal. The Court found that the monetary limit for filing appeals before the High Court was not met. Consequently, the appeal was dismissed. The ratio decidendi is that appeals filed in contravention of mandatory monetary limits prescribed by CBDT circulars are liable to be dismissed. The operative direction was the dismissal of the appeal.

What were the facts?

The appeal, ITA No. 1/2021, was filed by the Principal Commissioner of Income Tax (the Revenue) against M/s Construction Engineers (the assessee). The appeal was before the High Court of Jammu & Kashmir and Ladakh at Srinagar. The Revenue's counsel submitted that the amount involved in the appeal was below the mandatory limit of Rs. 2.00 Crores prescribed by the CBDT for filing appeals before the High Court, as per a circular dated 17th September 2024. The counsel stated that the matter had been taken up with the Principal Commissioner of Income Tax, Srinagar, for an appropriate decision.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the monetary limit prescribed by the CBDT circular dated 17th September 2024? (Question of law) The Revenue contended that the amount involved in the appeal was less than the mandatory limit of Rs. 2.00 Crores for filing appeals before the High Court, as per the CBDT Circular dated 17th September 2024. The Revenue's counsel submitted that the concerned authority was taking up the matter with the Principal Commissioner of Income Tax, Srinagar, for an appropriate decision. The judgment records no arguments from the assessee.

AI-generated summary — verify with the full judgment below

Sr. No. 12 Regular Cause List

IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR ITA No. 1/2021

Pr. Commissioner of Income Tax …Petitioner(s)/Appellant(s) Through: Mr. Omar Rashid Wani, Adv. Vs. M/s Construction Engineers ...Respondent(s) Through: None CORAM: HON’BLE MR. JUSTICE SANJEEV KUMAR, JUDGE HON’BLE MR. JUSTICE SANJAY PARIHAR, JUDGE O R D E R 26.05.2025

Learned counsel for the appellant fairly submits that as per the CBDT Circular dated 17th September 2024, the amount involved in this appeal is less than the mandatory limit prescribed for filing appeals before the High Court i.e., Rs. 2.00 Crores. He submits that the matter has been taken up by the concerned authority with the Principal, Commissioner of Income Tax, Srinagar, for appropriate decision. Be that as it may, we are of the considered opinion that in view of the clear stipulation in the circular dated 17th September 2024, the Income Tax Authority are under an obligation not to press this appeal. In view of the aforesaid, this appeal is dismissed.

(SANJAY PARIHAR) (SANJEEV KUMAR)

JUDGE JUDGE SRINAGAR: 26.05.2025 Altaf

Mohd Altaf Nima I attest to the accuracy and authenticity of this document 27.05.2025

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