In a relief for Rajinikanth, the Income Tax department has withdrawn their three tax appeal filed in the Madras High Court against the Superstar Rajinikanth, for concealing his income and expenditure details.
The IT department referred to an earlier circular by the Central Board of Direct Taxes ( CBDT) where it has decided to let go of the legal challenges where the contentious amount is Rs 1 crore or less.
The division bench comprising Justice Vineet Kothari and Justice R. Suresh Kumar approved the request made by senior standing counsel for the IT department M. Swaminathan to withdraw the tax appeal.
The CBDT had issued a Circular raising the threshold of filing cases in ITAT, High Court and Supreme Court.
According to the Circular, To effectively reduce taxpayer grievances/litigation and help the Department focus on litigation involving complex legal issues and high tax effect, the monetary limits for filing of appeals by the Department were last revised on 11th July 2018 vide CBDT Circular No.3 of 2018. As a step towards further management of litigation by the Government, the monetary limits for filing Departmental appeals before various appellate fora including ITAT, High Court & Supreme Court have been revised as under:
| Appellate Forum | Existing Monetary Limit(Rs.) | Revised Monetary Limit(Rs.) |
| Before Income Tax Appellate Tribunal | 20,00,000 | 50,00,000 |
| Before the High Court | 50,00,000 | 1,00,00,000 |
| Before the Supreme Court | 1,00,00,000 | 2,00,00,000 |
The cases were dismissed on the basis of a recent circular issued by CBDT on August 8, 2019, raising the threshold for filing cases.
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