PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) GURUGRAM vs. M/S ORIENT CRAFT LTD.

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ITA/133/2022HC Punjab & HaryanaPHHC01029462202203 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal allowed the prayer for withdrawal of the appeal. The reasoning was based on the application of Circular No. 9/2024, dated 17.09.2024, which revised the monetary limits for filing appeals. The Revenue argued that the present case did not fall within the exception clause of Circular No. 5/2024, implying that the tax effect of the appeal was below the enhanced threshold. Consequently, the Tribunal found it appropriate to allow the withdrawal of the appeal. The operative direction was to allow the withdrawal and dismiss the appeal as withdrawn. All pending applications were also dismissed as withdrawn.

What were the facts?

The appeal was filed by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT). The Revenue's counsel submitted that a Circular No. 9/2024, dated 17.09.2024, issued by the Ministry of Finance, Department of Revenue, Government of India, has amended the monetary limits for filing appeals by the department before the ITAT, High Court, and Supreme Court. The circular aims to manage litigation. The revised monetary limit for filing appeals before the High Court is Rs. 2 crore, and before the Supreme Court is Rs. 5 crore. The circular is effective from its date of issuance and applies to appeals to be filed and those pending. The Revenue sought to withdraw the present appeal as it did not fall within the exception clause of Circular No. 5/2024.

What were the issues?

1. Whether the present appeal, filed by the Revenue, should be withdrawn in light of the revised monetary limits stipulated in Circular No. 9/2024, dated 17.09.2024, issued by the Central Board of Direct Taxes. Assessee's Contention: The judgment does not record any specific contentions from the assessee. The assessee is M/s Orient Craft Ltd. Revenue's Contention: The Revenue, through its counsel Mr. Yogesh Putney, Sr. Standing Counsel, submitted that in terms of Circular No. 9/2024, the monetary limits for filing appeals have been enhanced. The present appeal, filed by the Revenue, does not fall within the exception clause of Circular No. 5/2024 and therefore, the Revenue prays for its withdrawal. The Revenue relied on Circular No. 9/2024 and Circular No. 5/2024.

AI-generated summary — verify with the full judgment below

ITA-133-2022 ( 136 IN T

THE PRINCIP GURUGRAM M/S ORIENT CORAM: H

H Present: M

SANJEEV PR

1.

Counsel Governm Board o limits fo Court a Circular with the b fi af S 1 2 (O&M)

Page 1 of 2 THE HIGH COURT OF PUNJAB CHANDIGARH

PAL COMMISSIONER OF INCOM

Vs. CRAFT LTD **** HON’BLE MR. JUSTICE SANJE HON’BLE MR. JUSTICE SANJA **** Mr. Yogesh Putney, Sr. Standing C for the appellant/Revenue. **** RAKASH SHARMA, J.(Oral) l for the appellant submits that in t ment of India, Ministry of Finance of Direct Taxes dated 17.09.2024 for filing of the appeals by the de and SLPs before the Supreme C r No.5/2024 has been amended an e purpose to manage litigations: “ 2. As a step towards manag been decided by the Board to revise filing of appeals in Income-tax cases a aforementioned Circular as follows: Sl. No. Appeals/SLPs in Income-tax 1. Before Income Tax Appella 2. Before High Court B AND HARYANA AT H ITA-133-2022 (O&M) Date of Decision: 03.10.2024 ME TAX, ( CENTRAL) . . . . Appellant . . . . Respondent EEV PRAKASH SHARMA AY VASHISTH Counsel terms of the Circular issued by the e, Department of Revenue, Central bearing No.9/2024, the monetary epartment before the ITAT, High Court has been enhanced and the d following steps have been taken gement of litigation, it has e the monetary limits for as stated in Para 4.1 of the x matters Monetary Limit (Tax effect in Rs.) te Tribunal 60 lakh 2 crore

) 4 t t e l y h e n MOHIT GOYAL 2024.10.14 11:58 I attest to the accuracy and integrity of this document

ITA-133-2022 ( 3 r in 1 5 s m 2. The mo Circular filed be the app which h 3. In view not fall prays fo 4. Accordi withdraw 5. All pend

October 03, 202 Mohit goyal 1. Whether 2. Whether (O&M)

Page 2 of 2 3. Before Supreme Court

3.

Monetary limits given in regard to filing appeal/SLP shall be ncluding those relating to TDS/TCS u 1961 with exceptions as per paras 3. 5/2024 dated 15.03.2024, where the d shall be taken on merits, without regar monetary limits.”

odifications have come into effe r i.e. 17.09.2024, and therefore s fore the Supreme Court, High Cou eals pending before the Supreme have been directed to be withdrawn of aforesaid Circular No.09/2024 within the exception clause of Ci or withdrawal of the present appeal ingly, we allow the prayer as abov wn. ding applications also stand dismis

(SAN 24 speaking/reasoned?

Y reportable?

Y 5 crore paragraph 2 above with e applicable to all cases under the Income-tax Act, .1 and 3.2 of Circular No decision to appeal/file SLP rd to the tax effect and the ect from the date of issuance of shall apply to SLPs/appeals to be urt and Tribunal and also apply to Court, High Court and Tribunal, n. dated 17.09.2024, as the case does ircular No.5/2024, learned counsel . ve, and the appeal is dismissed as sed as withdrawn accordingly. NJEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH) JUDGE Yes/No Yes/No

f e o , s l s MOHIT GOYAL 2024.10.14 11:58 I attest to the accuracy and integrity of this document

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