COMMISSIONER OF INCOME TAX II ASR vs. M/S KANDHARI BEVERAGES PVT LTD

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ITA/205/2012HC Punjab & HaryanaPHHC01099278201215 October 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE ALOK JAIN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the revised monetary limits for filing appeals by the department before the ITAT, High Court, and Supreme Court, as stipulated in Circular No. 9/2024 dated 17.09.2024, have come into effect from the date of issuance of the circular. The Tribunal noted that these revised limits apply to all appeals to be filed before these authorities, including those relating to TDS/TCS under the Income-tax Act, 1961, with certain exceptions. The Tribunal accepted the submission that the present case does not fall within the exception clause of Circular No. 5/2024 and, therefore, the prayer for withdrawal of the appeal should be allowed. The Tribunal allowed the prayer for withdrawal and dismissed the appeal as withdrawn. All pending applications were also disposed of accordingly. The ratio decidendi is that appeals not meeting the enhanced monetary limits prescribed by the CBDT circulars are to be withdrawn.

What were the facts?

The appeal was filed by the Commissioner of Income-Tax-II, Amritsar (appellant) against M/s Kandhari Beverages Pvt. Ltd. (respondent). The assessment year(s) are not specified. The order or action under challenge is the appeal itself, which the appellant sought to withdraw. The procedural history involves the issuance of Circular No. 9/2024 by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, dated 17.09.2024, which revised the monetary limits for filing appeals by the department before the ITAT, High Court, and Supreme Court. The amount in dispute is not explicitly stated but is implied to be below the revised monetary limits. The appellant's counsel submitted that the present appeal, filed before the Supreme Court, High Court, and Tribunal, falls within the exception clause of Circular No. 5/2024, which allows for withdrawal of appeals if they do not fall within the enhanced monetary limits.

What were the issues?

1. Whether the present appeal, filed before the Supreme Court, High Court, and Tribunal, should be withdrawn in light of the revised monetary limits for filing appeals as per Circular No. 9/2024 dated 17.09.2024. Assessee's Contention: The respondent's counsel argued that the revised monetary limits for filing appeals have come into effect from 17.09.2024. They contended that the present appeal does not fall within the exception clause of Circular No. 5/2024, which pertains to cases where decisions to appeal are taken on merits irrespective of tax effect. Therefore, they prayed for the withdrawal of the present appeal. The respondent relied on Circular No. 9/2024 and Circular No. 5/2024. Revenue's Contention: The appellant's counsel submitted that in terms of Circular No. 9/2024, the monetary limits for filing appeals have been enhanced. They stated that the circular has been amended to manage litigation and that appeals pending before the Supreme Court, High Court, and Tribunal have been directed to be withdrawn if they do not meet the revised limits. The appellant relied on Circular No. 9/2024.

AI-generated summary — verify with the full judgment below

ITA-205-2012 ( 215-2 IN T

THE COMMIS M/S KANDHA LAWRENCE R CORAM: H

H Present: M

M f

SANJEEV PR

1.

Counsel Governm Board o limits fo Court an the Circ taken w b fi af S 1 2 (O&M)

Page 1 of 2 THE HIGH COURT OF PUNJAB CHANDIGARH

SSIONER OF INCOME-TAX-II, A Vs. ARI BEVERAGES PVT. LTD.,4-K ROAD, AMRITSAR. **** HON’BLE MR. JUSTICE SANJE HON’BLE MR. JUSTICE ALOK **** Ms. Urvashi Dhugga, Sr. Standing C Mr. Pankaj Jain, Sr. Advocate with Mr. Divya Suri and Mr. Sachin Bha for the respondent. **** RAKASH SHARMA, J.(Oral) l for the appellant submits that in t ment of India, Ministry of Finance of Direct Taxes bearing No.9/2024 for filing of the appeals by the de nd SLP/Appeals before the Suprem cular No.5/2024 has been amende with the purpose to manage litigation “ 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-205-2012 (O&M) Date of Decision: 15.10.2024 AMRITSAR . . . . Appellant KRISHNA NAGAR, . . . . Respondent EEV PRAKASH SHARMA K JAIN Counsel for the appellant. ardwaj, Advocates terms of the Circular issued by the e, Department of Revenue, Central 4 dated 17.09.2024, the monetary epartment before the ITAT, High me Court have been enhanced and ed and following steps have been ns: 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 d n Manju 2024.10.18 10:15 I attest to the accuracy and integrity of this document

ITA-205-2012 ( 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 15, 202 MANJU 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 dispose

(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 ed of accordingly. NJEEV PRAKASH SHARMA) JUDGE

(ALOK JAIN) JUDGE Yes/No Yes/No

f e o , s l s Manju 2024.10.18 10:15 I attest to the accuracy and integrity of this document

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