PRINCIPAL COMMISSIONER OF INCOME TAX -33 vs. SHETH CONSTRUCTION COMPANY
What did the High Court hold?
The Bombay High Court disposed of the Income Tax Appeal solely on the ground that the tax effect involved was below Rs. 2 Crores, as per the CBDT Circular dated September 17, 2024. The Court found that the disputed claim of Rs. 118 lakh did not meet the threshold for the appeal to be entertained. Consequently, the appeal was disposed of on this procedural basis. The Court granted liberty to the Revenue to revive the appeal in the event the tax effect was found to be outside the parameters of the said Circular. No order as to costs was made. The substantive merits of the appeal were not adjudicated.
What were the facts?
The appeal, filed by the Principal Commissioner of Income Tax – 33, Mumbai (the Revenue), challenges an order concerning Sheth Construction Co. (the assessee). The disputed claim amounts to Rs. 118 lakh. The appeal was listed before the Bombay High Court on December 18, 2025. The Revenue was represented by Mr. Ravi Rattesar, while no one appeared for the Respondent assessee. The Court noted that the tax effect of the appeal was below Rs. 2 Crores, as stipulated by CBDT Circular dated September 17, 2024.
What were the issues?
1. Whether the Income Tax Appeal, with a disputed claim of Rs. 118 lakh, falls within the monetary limit for filing appeals as per CBDT Circular dated September 17, 2024? (Question of fact and law, turning on the interpretation and application of the CBDT Circular). Assessee's Contentions: Not recorded as none appeared. Revenue's Contentions: The Revenue, through its representative, implicitly sought the appeal to be heard on merits by filing it. However, the primary argument that emerged from the Court's observation was related to the tax effect and the applicability of the CBDT Circular. The Revenue did not present arguments on the substantive issues of the appeal.
Which sections of the Income-tax Act were involved?
None
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER :
We have perused the disputed claim in the above Income Tax Appeal which is valued at Rs. 118 lakh and thus below the tax effect of Rs. 2 Crores as per the CBDT Circular 17th September, 2024. 2. In view of the tax effect, as the present Income Tax ------------------------------------------------- Order dated December 20, 2025 JITENDRA SHANKAR NIJASURE JITENDRA SHANKAR NIJASURE Date: 2025.12.20 13:41:24 +0530
906-itxa-2938-2018.doc Principal Commissioner of Income Tax – 33, Mumbai v. Sheth Construction Co. Appeal is below Rs. 2 Crores as per said CBDT Circular dated 17th September, 2024, we dispose of Income Tax Appeal on that ground. There shall be no order as to costs.
In the event the tax effect as involved is not within the parameters of the Circular dated 17th September 2024, liberty to revive this appeal. [FARHAN P. DUBASH, J.] [R.I. CHAGLA J.] 906-itxa-2938-2018.doc jsn. ------------------------------------------------- Order dated December 20, 2025
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