PR. COMMISSIONER OF INCOME TAX-CENTRAL vs. SHRI KAMAL SETHIA
What did the High Court hold?
The High Court accepted the Department's submission and disposed of the appeal. The decision was based on the new circular which set a higher monetary threshold for filing appeals.
What were the facts?
The Department sought to withdraw an appeal before the High Court because the tax effect was less than the enhanced monetary limit of Rs. 2 crores. A new circular dated 17.09.2024 had increased this limit for filing appeals before High Courts.
What were the issues?
Whether the appeal should be withdrawn based on the revised monetary limits for filing appeals by the Department before the High Court as per the new circular.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
2025:CGHC:30603-DB
NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No.8 of 2020 Assistant Commissioner Of Income Tax Circle-1, Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh
... Appellant versus M/s South Eastern Coalfields Limited Seepat Road, Bilaspur Chhattisgarh.
... Respondent For Appellant : Shri Ajay Kumrani, Advocate. For Respondent : Shri Mohit Kumar, Advocate. Hon'ble Shri Sanjay K. Agrawal and Hon'ble Shri Deepak Kumar Tiwari, JJ. Judgment On Board (04.07.2025) Sanjay K. Agrawal, J. 1. When the case is taken for hearing, learned counsel for the Appellant submits that the Government of India, Ministry of Finance has issued a new circular dated 17.09.2024 in which, monetary limits for filing Income Tax Appeals by the Department before the High Court has been enhanced to Rs.2 crores whereas, in the present case, the tax Digitally signed by SISTLA NEELIMA VISHNU PRIYA Date: 2025.07.07 10:49:28 +0530
2 liability of the assessee is less than Rs.2 Crores, therefore, in the light of the aforesaid circular dated 17.09.2024, the present Appeal may be disposed of finally. 2. The said prayer appears to be fair and reasonable. 3. For ready reference, relevant paragraphs of the circular dated 17.09.2024 are quoted below:- “1. Reference is invited to Circular No 5/2024 (F.No.279/Misc.142/2007-ITJ(Pt) dated15.03.2024 of Central Board of Direct Taxes (the 'Board') vide which monetary limits for filing of income tax Appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLP/Appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular. 2. As a step towards management of litigation, it has been decided by the Board to revise the monetary limits for filing of Appeals in Income-tax cases as stated in Para 4.1 of the aforementioned Circular as follows:- S.No . Appeals/SLPs
in income-tax matters Monetary Limit (Tax effect in Rs.) 1. Before Income Tax Appellalte Tribunal 60 lacs 2. Before High Court 2 crores 3. Before Supreme Court 5 crores 3. Monetary limits given in paragraph-2 above with regard to filing Appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income- Tax Act, 1961 with exceptions as per paras 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision to Appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits. 4. It is clarified that an Appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of Appeal in such cases is to be decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an Appeal.
3 5. The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/Appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to the SLPs/ Appeals pending before Supreme Courts/High Courts/Tribunal, which may accordingly be withdrawn. 6. The above may be brought to the notice of all concerned. 7. This issues under section 268A of the Income-tax Act, 1961. 8. Hindi version will follow.” 4. In view of the aforesaid submissions of learned counsel for the Appellant where monetary limit (tax liability) in the present case is less than Rs.2 Crores and in the light of aforesaid circular (Para-5) dated 17.09.2024, the instant Tax Case stands disposed of.
Sd/- Sd/- (Sanjay K. Agrawal) (Deepak Kumar Tiwari )
Judge Judge Priya
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