THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. SIVAKUMARAN PUGAZHENDHI

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TCA/460/2023HC Madras03 July 2025Bench: Honourable The CHIEF JUSTICE4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the withdrawal of the appeal. The Court noted that the Revenue's counsel had instructions to withdraw the appeal because the monetary limit involved was below the prescribed limits in Circular No.05/2024 and Circular No.09/2024. The counsel explicitly stated that the withdrawal was only due to the monetary limit and not an admission on the merits of the Department's case. Therefore, the appeal was dismissed as withdrawn. No order as to costs was made. The specific issue decided by the Tribunal below was not discussed or adjudicated upon by the High Court, as the appeal was disposed of on a procedural ground.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-4, Chennai (the Revenue) against an order dated 21.09.2022 passed by the Income Tax Appellate Tribunal ('C' Bench, Chennai) in ITA No.27/CHNY/2022. The respondent in the appeal is Sivakumaran Pugazhendhi. The appeal was filed under Section 260A of the Income Tax Act, 1961. The Revenue's counsel stated that the monetary limit involved in the appeal was below the prescribed limits in Circular No.05/2024 and Circular No.09/2024 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. Consequently, the counsel had instructions to withdraw the appeal.

What were the issues?

1. Whether the appeal, involving a monetary limit below the prescribed threshold in CBDT Circulars, should be permitted to be withdrawn by the Revenue? (Question of law, turning on the interpretation and application of CBDT Circulars No.05/2024 and 09/2024). Assessee's Arguments: No arguments were recorded for the assessee as there was no appearance. Revenue's Arguments: The Revenue's counsel argued that the monetary limit involved in the appeal was below the limits prescribed by Circular No.05/2024 and Circular No.09/2024. Based on instructions received, the counsel sought to withdraw the appeal. The withdrawal was stated to be solely due to the monetary limit and without conceding the Department's stand.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.460 of 2023

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 03.07.2025 CORAM : THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE SUNDER MOHAN T.C.A.No.460 of 2023 The Principal Commissioner of Income Tax-4 Chennai 4. .. Appellant Vs. Sivakumaran Pugazhendhi No.70, Raja Agraharam Street Poonamallee, Chennai 600 056. PAN: AIAPP7309R .. Respondent Prayer : Appeal filed under Section 260A of the Income Tax Act, 1961 against the order dated 21.09.2022 passed in ITA No.27/CHNY/2022 on the file of the Income Tax Appellate Tribunal 'C' Bench, Chennai. For Appellant : Mrs.V.Pushpa Senior Standing Counsel For Respondent : No appearance __________ Page 1 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/07/2025 11:33:09 am ) T.C.A.No.460 of 2023

JUDGMENT (Judgment of the Court was delivered by the Hon'ble Chief Justice) Ms.Pushpa states that the monetary limit involved in this appeal is below the monetary limit prescribed in Circular No.05/2024 dated 15.03.2024 and 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. Counsel says that she has instructions, therefore, to withdraw the appeal. 2. Counsel also states that the withdrawal is only due to the monetary limit and without conceding the stand of the Department. 3. Appeal stands dismissed as withdrawn. There shall be no order as to costs. (K.R.SHRIRAM, CJ) (SUNDER MOHAN,J.)

03.07.2025 Index : Yes/No __________ Page 2 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/07/2025 11:33:09 am ) T.C.A.No.460 of 2023

Neutral Citation : Yes/No kpl To 1. The Assistant Registrar Income Tax Appellate Tribunal Chennai Benches, Chennai. 2. The Deputy Commissioner of Income Tax Corporate Circle 8(1) Chennai. 3. The Assistant Commissioner of Income Tax Corporate Circle 8(1) Chennai.

__________ Page 3 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/07/2025 11:33:09 am ) T.C.A.No.460 of 2023

THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN

,J.

(kpl)

T.C.A.No.460 of 2023

03.07.2025 __________ Page 4 of 4 https://www.mhc.tn.gov.in/judis ( Uploaded on: 10/07/2025 11:33:09 am )

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