COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH vs. M/S MANAV MANGAL SOCIETY

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ITA/217/2023HC Punjab & HaryanaPHHC01142247202311 March 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court allowed the application for dismissal of the appeal. The Court accepted the revenue's submission that Circulars No. 05/2024 and 09/2024 issued by the CBDT mandate that appeals with a tax effect below two crores are not maintainable. Consequently, the appeal was taken on board and dismissed as not pressed. The Court did not delve into the merits of the original appeal, as the dismissal was based on the procedural grounds presented by the revenue concerning the tax effect and the applicability of the circulars. No specific tax effect amount for this appeal was recorded in the judgment.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax (Exemptions), Chandigarh (the appellant/revenue) against M/s Manav Mangal Society (the respondent/assessee). The appeal was filed before the High Court of Punjab and Haryana at Chandigarh. The present proceedings concern an application for dismissal of the appeal. The appellant's counsel submitted that the appeal should be dismissed as not pressed, citing Circulars No. 05/2024 and 09/2024 issued by the Central Board of Direct Taxes (CBDT). These circulars stipulate that appeals with a tax effect below two crores are not maintainable. The application for dismissal was allowed by the Court.

What were the issues?

1. Whether the appeal filed by the revenue is maintainable in light of CBDT Circulars No. 05/2024 and 09/2024, which prescribe a monetary limit for filing appeals. (Question of law) Contentions: Assessee: Not recorded. Revenue: The revenue, through its counsel, argued that per Circulars No. 05/2024 and 09/2024, no appeal where the tax effect is less than two crores is maintainable. Therefore, the present appeal should be dismissed as not pressed.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CM-4222-CII-2025 in/and ITA-217-2023 (O&M)

Date of decision: 11.03.2025

The Commissioner of Income Tax, (Exemptions), Chandigarh

….Appellant Versus

M/s Manav Mangal Society

….Respondent

CORAM: HON'BLE MR. JUSTICE ARUN PALLI

HON'BLE MRS. JUSTICE SUDEEPTI SHARMA

Present: Mr. Varun Issar, Senior Standing Counsel, and

Ms. Pridhi Sandhu, Junior Standing Counsel, for the applicant-appellant.

Ms. Radhika Suri, Senior Advocate, with

Mr. Abhinav Narang, Advocate, and

Ms. Parnika Singla, Advocate, for the respondent.

ARUN PALLI, J. (Oral)

This is an application for dismissal of the appeal, in view of Circulars No.05/2024 and 09/2024, issued by the Central Board of Direct Taxes.

Learned counsel for the applicant-appellant submits that per Circulars No. 05/2024 and 09/2024 (ibid), which are taken on record as R-6 and R-7, no appeal, where the tax effect is less than two crores, is maintainable, therefore, the present appeal be dismissed, being not pressed.

Accordingly, the application is allowed. The appeal is taken on board and the same is dismissed, as not pressed.

(ARUN PALLI)

JUDGE

(SUDEEPTI SHARMA)

JUDGE 11.03.2025 Ak Sharma Whether speaking/reasoned Yes/No Whether reportable Yes/No

AMIT KUMAR 2025.03.11 18:33 I attest to the accuracy and authenticity of this document

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