The Principal Commissioner of Income Tax 3 vs. Poornima Shrenik Kothari

PDF · subscribers
TCA/137/2026HC Madras25 August 2026Bench: Honourable The CHIEF JUSTICE4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the tax effect involved in the appeal was below the monetary limit prescribed by Circular No.09/2024, dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. Consequently, in terms of the said Circular, the tax case appeal filed by the Revenue was not maintainable. The Court dismissed the appeal on this procedural ground. However, the Court explicitly stated that the issue raised in the appeal was left open to be considered in an appropriate case. No order as to costs was made.

What were the facts?

The Revenue, specifically the Principal Commissioner of Income Tax-3, Chennai, filed an appeal under Section 260A of the Income Tax Act, 1961, before the High Court of Judicature at Madras. The appeal was against an order dated 18.03.2026 passed by the Income Tax Appellate Tribunal (“C” Bench, Chennai) in ITA No.3457/Chny/2025. The respondent in this appeal is Poornima Shrenik Kothari. The judgment does not specify the assessment year(s) or the amount in dispute, other than noting that the tax effect is below a prescribed monetary limit.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court, considering the tax effect involved and the prevailing monetary limits prescribed by the CBDT circulars. The Revenue contended that the appeal should be heard on merits. The Revenue relied on the fact that they had filed an appeal under Section 260A of the Income Tax Act, 1961. The judgment does not record any specific arguments from the Revenue regarding the substantive issue of the appeal, nor does it record any arguments from the Respondent assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.137 of 2026 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.08.2026 CORAM : THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN T.C.A.No.137 of 2026 The Principal Commissioner of Income Tax -3 121, MG Salai, Nungambakkam, Chennai-600 034. Appellant Vs Poornima Shrenik Kothari B-6, Rams Apartment 21, Raja Annamalai Road, Chennai-600 084 Respondent PRAYER

: Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal “C” Bench, Chennai, dated 18.03.2026 in ITA No.3457/Chny/2024. For Appellant: Mr.S.Sathyanarayanan Sr. Standing Counsel ______________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 27/08/2026 02:44:07 pm ) T.C.A.No.137 of 2026 JUDGMENT (Delivered by the Hon'ble Chief Justice) This appeal has been filed by the Revenue against the order dated 18.03.2026 passed by the Income Tax Appellate Tribunal “C” Bench, Chennai in I.T.A.No.3457/Chny/2025. 2. The tax effect involved in this appeal is below the monetary limit prescribed in Circular No.09/2024, dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India. Therefore, in terms of the Circular dated 17.09.2024, this tax case appeal is not maintainable and the same is dismissed. However, the issue raised in this appeal is left open to be considered in an appropriate case. There shall be no order as to costs. (SUSHRUT ARVIND DHARMADHIKARI, CJ) (G.ARUL MURUGAN,J)

25.08.2026 Index : Yes/No Neutral Citation : Yes/No bbr ______________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 27/08/2026 02:44:07 pm ) T.C.A.No.137 of 2026 To: 1. The Assistant Registrar Income Tax Appellate Tribunal Chennai Benches, Chennai. 2. The Principal Commissioner of Income Tax-3 121, MG Salai, Nungambakkam, Chennai-34. 3. The Income Tax Officer, Non-Corporate Ward 10(3) Chennai. ______________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 27/08/2026 02:44:07 pm ) T.C.A.No.137 of 2026 THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN,

bbr T.C.A.No.137 of 2026

25.08.2026 ______________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 27/08/2026 02:44:07 pm )

Recent GST High Court judgments

Search GST case law →