PRINCIPAL COMMISSIONER OF INCOME TAX -1, NASHIK vs. M/S K.G.AGRO PROCESSOR PVT LTD, DHULE

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ITA/2/2023HC BombayHCBM03004401202307 October 2025Bench: HON'BLE SMT. JUSTICE VIBHA KANKANWADI,HON'BLE SHRI JUSTICE HITEN S. VENEGAVKAR2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the application for withdrawal. The Court noted the submission by the Senior Standing Counsel for the Union of India that the CBDT Circular No. 9/2024-Income Tax dated 17th September 2024, along with Circular No. 5/2024/Income Tax dated 15th March 2024, enhanced the monetary thresholds for filing departmental appeals. The enhanced limit before the High Court was Rs. 2,00,00,000/-. As the dispute valuation of Rs. 1,70,33,456/- was below this limit, and acting upon instructions, the appeal was being withdrawn. The Court held that in view of these submissions, the application stands allowed, and Income Tax Appeal No. 2 of 2023 is disposed of as withdrawn. The refund of court fees was also allowed as per rules.

What were the facts?

The applicant, the Principal Commissioner of Income Tax, Nashik, filed an application for withdrawal of Income Tax Appeal No. 2 of 2023. The appeal was against an order concerning Ms. K G Agro Processor Pvt Ltd, Dhule. The withdrawal was sought on monetary grounds, citing a circular from the Central Board of Direct Taxes (CBDT) dated 17th September 2024, which enhanced monetary thresholds for filing departmental appeals. The enhanced monetary limit for appeals before the High Court was stated to be Rs. 2,00,00,000/-. The dispute valuation in the present matter was Rs. 1,70,33,456/-, which is below this enhanced limit. The applicant also prayed for a refund of court fees.

What were the issues?

1. Whether the Income Tax Appeal No. 2 of 2023 should be allowed to be withdrawn on monetary grounds, in light of the CBDT Circular No. 9/2024-Income Tax dated 17th September 2024, which raised the monetary threshold for filing departmental appeals to Rs. 2,00,00,000/- before the High Court. Assessee's Contention: The assessee (represented by the Revenue in this context, as they are withdrawing the appeal) argued, through the Senior Standing Counsel, that the appeal should be withdrawn. This is because the dispute valuation of Rs. 1,70,33,456/- falls below the enhanced monetary limit prescribed by the CBDT Circular dated 17th September 2024. This circular aims to reduce litigation and focus on substantial tax disputes. Revenue's Contention: Not applicable, as the Revenue is the applicant seeking withdrawal.

AI-generated summary — verify with the full judgment below

ca-11097.25 1

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD 906 CIVIL APPLICATION NO. 11097 OF 2025 IN ITA/2/2023 THE PR COMMISSIONER OF INCOME TAX 1 NASHIK VERSUS MS K G AGRO PROCESSOR PVT LTD DHULE WITH INCOME TAX APPEAL NO. 2 OF 2023 ... Ms. Kalpalata Patil Bharaswadkar, Senior Standing Counsel for Applicant.

... CORAM: SMT. VIBHA KANKANWADI AND HITEN S. VENEGAVKAR, JJ. DATE : 7th OCTOBER, 2025 ORDER : 1. Present application has been filed for withdrawal of the Appeal on monetary ground. 2. Heard Ms. Bharaswadkar, learned Senior Standing Counsel for Union of India. She submits that the Central Board of direct taxes issued Circular No.9/24-Income tax dated 17th September 2024, enhancing the monetary thresholds for filing departmental 2025:BHC-AUG:28363-DB

ca-11097.25 2 appeals following up on Circular No.5/2024/Income Tax, dated 15th March 2024. It is stated that the said move is in line with the Government’s commitment to reduce unnecessary litigation and ensuring that only substantial tax disputes are escalated to the judiciary, thus reducing workload on Courts and fostering a more efficient tax dispute resolution mechanism. The enhanced monetary limit before this Court is Rs.2,00,00,000/-. In the present matter dispute valuation is Rs.1,70,33,456/- which is below the limit of the Circular dated 17th September 2024 and therefore, upon instructions, she is withdrawing the appeal. Along-with the application she has filed the copy of the Notification. She has also prayed for refund of the Court fees. 3. In view of the said submission, Application stands allowed. The Income Tax Appeal No.2 of 2023 stands disposed of as withdrawn. The Court fee refund is allowed as per the rules.

[HITEN S. VENEGAVKAR] [SMT. VIBHA KANKANWADI] JUDGE JUDGE asb/OCT25

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