2025 (1) TMI 1498 - HC - Income Tax

Monetary limits for filing Income Tax Appeals by the department before the High Court - Maintainability of appeal on low tax effect - HELD THAT - As per submission of appellant where monetary limit (tax liability) in the present case is less than Rs. 2 Crores therefore in light of aforesaid circular (Para-5) dated 17/09/2024 the instant Tax Case stands disposed of.

Summary

In the case before the Chhattisgarh High Court, presided over by Hon'ble Justices Sanjay K. Agrawal and Sanjay Kumar Jaiswal, the appellant's counsel, Mr. Ajay Kumrani, submitted that a new circular issued by the Government of India, Ministry of Finance, dated 17.09.2024, has revised the monetary limits for filing Income Tax Appeals. Specifically, the circular increases the threshold for appeals to the High Court to Rs. 2 Crores. In this case, the tax liability is below this threshold. The court found the submission "fair and reasonable" and quoted relevant portions of the circular, which outlines the revised monetary limits for appeals: Rs. 60 Lakh for the Income Tax Appellate Tribunal, Rs. 2 Crore for High Courts, and Rs. 5 Crore for the Supreme Court. The circular emphasizes reducing unnecessary litigation and ensuring certainty in tax assessments. Consequently, the court disposed of the appeal in light of the circular, as the monetary limit was not met.