2025 (3) TMI 1231 - HC - Income Tax

Application for restoration of Income Tax Appeal which was allowed to be withdrawn or disposed - HELD THAT - This appeal was instituted in 2013. At that time instructions dated 9th February 2011 were in force. The exceptions in clause (8) of this Instruction did not include appeals on TDS issues. The exception regarding TDS issues was introduced only under Circular No. 5 of 2024 dated 15th March 2024. In V. M. Salgaocar and Brothers (P) Limited 2024 (12) TMI 717 - BOMBAY HIGH COURT this Court has held that the exception in Circular No. 5 of 2024 dated 15th March 2024 cannot be applied retrospectively. The increased tax effect ceiling would apply even to pending appeals. Therefore by following the reason in V. M. Salgaocar and Brothers (P) Limited 2024 (12) TMI 717 - BOMBAY HIGH COURT this appeal was correctly withdrawn or disposed of as recorded in the order dated 25th October 2024. Incidentally the decision in V. M. Salgaocar and Brothers (P) Limited 2024 (12) TMI 717 - BOMBAY HIGH COURT was followed in the context of the issue very similar to the one now raised in the case of The Principal Commissioner of Income Tax-23 Mumbai Versus M/s IPL Loan Trust 2025 (2) TMI 453 - BOMBAY HIGH COURT We decline restoration and maintain our earlier orders.

Summary

**Summary of Judgement: Bombay High Court****Case Overview:**The Bombay High Court addressed an application for the restoration of Income Tax Appeal No. 2062 of 2013, which had been withdrawn or disposed of by an order dated 25th October 2024. The primary legal issue revolved around the applicability of exceptions concerning TDS (Tax Deducted at Source) issues as outlined in Circular No. 5 of 2024.**Legal Contentions:**- **Petitioner's Argument:** Mr. Bhate, representing the appellant, argued that the appeal concerns TDS issues and falls under the exception provided in Circular No. 5 of 2024, dated 15th March 2024.- **Respondent's Argument:** Mr. Joshi, representing the respondent, contended that the appeal, instituted in 2013, should be governed by Instruction No. 3 of 2011, which did not include exceptions for TDS issues. He cited the case of *Commissioner of Income Tax Vs. V. M. Salgaocar and Brothers (P) Limited* to support the position that the exception in the 2024 Circular could not be applied retrospectively.**Court's Analysis:**- The court noted that the appeal was initiated under the 2011 instructions, which did not provide exceptions for TDS issues. The exception was introduced only in 2024.- The precedent set in *V. M. Salgaocar and Brothers (P) Limited* established that the 2024 Circular's exceptions could not be applied retrospectively, although the increased tax effect ceiling could apply to pending appeals.- The court held that the withdrawal or disposal of the appeal was correct, following the reasoning in *V. M. Salgaocar and Brothers (P) Limited*.**Conclusion:**The court declined the restoration of the appeal and upheld the earlier orders, disposing of all related praecipes.