PR. COMMISSIONER OF INCOME TAX-27 vs. SKYLARK BUILDERS SSJC (GHATKOPAR)

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ITXA/2588/2018HC BombayHCBM02010441201804 December 2025Bench: HON'BLE SHRI JUSTICE R. I. CHAGLA,HON'BLE SHRI JUSTICE FARHAN PARVEZ DUBASH3 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the exceptions in the CBDT Circular dated 20th August 2018 apply only prospectively from the date of their introduction. Consequently, since the present Income Tax Appeal was filed prior to the Circular dated 20th August 2018 and the subsequent Circular dated 15th March 2024, it is not covered by the exceptions mentioned in these circulars. The Tribunal further noted that the tax effect in the appeal is below Rs. 2 crores as per the CBDT Circular dated 17th September 2024. Therefore, the appeal was disposed of on the ground that the tax effect is below the prescribed limit. Liberty was granted to revive the appeal if the tax effect is found to be outside the parameters of the 17th September 2024 Circular. No order as to costs was made.

What were the facts?

The Principal Commissioner of Income Tax - 27 (the Revenue) filed an Income Tax Appeal before the Bombay High Court against Skylark Builders SSJC (Ghatkopar) (the assessee). The appeal concerns a disputed claim valued at Rs. 81,71,610/-. The Revenue argued that the appeal was covered by exceptions in CBDT Circulars dated 20th August 2018 and 15th March 2024. The Court had previously held in *Pr. Commissioner of Income Tax-14, Mumbai Vs. Premier Industrial Corporation Limited* that exceptions in the 20th August 2018 Circular apply prospectively, while monetary limits apply to pending appeals. The present appeal was filed before the 20th August 2018 Circular.

What were the issues?

1. Whether the exceptions provided in CBDT Circulars dated 20th August 2018 and 15th March 2024 apply to the present Income Tax Appeal, which was filed prior to these circulars? (Question of law) Assessee's Contentions: The judgment does not record any specific contentions from the assessee. The appeal was disposed of based on the tax effect and the applicability of circulars. Revenue's Contentions: The Revenue contended that the appeal is covered by the exceptions in the CBDT Circulars dated 20th August 2018 and 15th March 2024. The Revenue relied on the Court's decision in *Pr. Commissioner of Income Tax-14, Mumbai Vs. Premier Industrial Corporation Limited* to argue for the prospective application of exceptions.

AI-generated summary — verify with the full judgment below

4-itxa-2588-2018.doc The Pr. Comm of Income Tax -1, Navi Mumbai v. Skylark Builders SSJC (Ghatkopar) IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2588 OF 2018 The Pr. Commissioner of Income Tax - 27 …Appellant Versus Skylark Builders SSJC (Ghatkopar) …Respondent ---------- Mr. Arjun Gupta for the Appellant. ---------- CORAM : R.I. CHAGLA AND FARHAN P. DUBASH, JJ. DATE : 4TH DECEMBER, 2025 ORDER : 1. The Income Tax Appeal is in respect of the disputed claim valued at Rs. 81,71,610/- and thus below the tax effect of Rs. 2 crores as per the Central Board of Direct Taxes (CBDT) Circular dated 17th September 2024. 2. Mr. Arjun Gupta, learned Counsel appearing for the Page 1 of 3 ------------------------------------------------- Order dated December 4, 2025 JITENDRA SHANKAR NIJASURE Digitally signed by JITENDRA SHANKAR NIJASURE Date: 2025.12.06 12:03:50 +0530

4-itxa-2588-2018.doc The Pr. Comm of Income Tax -1, Navi Mumbai v. Skylark Builders SSJC (Ghatkopar) Appellant – Revenue has submitted that this Appeal is covered by the exceptions in Circulars dated 20th August 2018 and 15th March 2024. 3. It has been held by this Court in Pr. Commissioner of Income Tax-14, Mumbai Vs. Premier Industrial Corporation Limited Income Tax Appeal No. 2061 of 2018 along with companion Income Tax Appeal No. 2063 of 2018 that the exceptions in the Circular dated 20th August 2018 apply only prospectively i.e. from the date of introduction of such exception. However, the monetary limits prescribed by the Circulars apply to pending Appeals. 4. Considering that the present Income Tax Appeal has been filed prior to the Circular dated 20th August 2018 and subsequent Circular dated 15th March 2024, this Appeal is not covered by the exceptions in these Circulars. 5. The tax effect in the present Income Tax Appeal is below Rs. 2 Crores as per Circular dated 17th September 2024. Page 2 of 3 ------------------------------------------------- Order dated December 4, 2025

4-itxa-2588-2018.doc The Pr. Comm of Income Tax -1, Navi Mumbai v. Skylark Builders SSJC (Ghatkopar) 6. The Income Tax Appeal No. 2588 of 2018 is disposed of on the ground that the tax effect therein is below Rs. 2 crores as per Circular dated 17th September 2024. There shall be no order as to costs. 7. In the event the tax effect as involved is not within the parameters of the Circular dated 17th September 2024, liberty to revive this appeal. [FARHAN P. DUBASH, J.] [R.I. CHAGLA J.] 4-itxa-2588-2018.doc jsn. Page 3 of 3 ------------------------------------------------- Order dated December 4, 2025

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