Income Tax Appeal cannot merely File due to exceeding Monetary limit: Chhattisgarh HC [Read Order]
It is clarified that an Appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above.
Income - tax - appeal - Taxscan
Income - tax - appeal - Taxscan
The High Court of Chhattisgarh observed that Income Tax Appeal cannot merely file due to exceeding monetary limit and disposed of the appeal relying on the fact that the monetary limit (tax liability) is less than Rs.2 Crores.
When the case is taken for hearing, counsel for the Appellant submitted 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 liability of the assess 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.
The circular dated 17.09.2024 are referenced in 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.
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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 the aforementioned Circular. Monetary limits with regard to filing Appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the IncomeTax 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.
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 deciding on filing an Appeal.
A division bench of Justice Sanjay K. Agrawal and Justice Sachin Singh Rajput dismissed the petition as the monetary limit (tax liability) is less than Rs.2 Crores and in the light of aforesaid circular dated 17.09.2024 it is not appealable before the court.
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