What did the High Court hold?

The High Court allowed the application for withdrawal of the appeal. The appeal was disposed of as withdrawn, and court fees were refunded as per rules.

The Revenue sought to withdraw its appeal before the Bombay High Court. This withdrawal was based on a CBDT circular enhancing monetary thresholds for filing departmental appeals.

What were the issues?

Whether the appeal should be withdrawn based on revised monetary limits set by the CBDT. The primary issue is the application of the new monetary threshold for litigation.

PCIT vs M/S Varroc Engineering Pvt. Ltd… | Bombay High Court 2025

ca-11091.25 1

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD 905 CIVIL APPLICATION NO. 11091 OF 2025 IN ITA/24/2024 THE PR COMMISSIONER OF INCOME TAX 1 NASHIK VERSUS VARROC ENGINEERING PVT LTD WITH INCOME TAX APPEAL NO. 24 OF 2024 ... 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:28360-DB

ca-11091.25 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.1,12,89,470/- 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 The Income Tax Appeal No.24 of 2024 stands disposed of as withdrawn.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

PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S VARROC ENGINEERING PVT. LTD. AURANGABAD

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