2024 (2) TMI 610 - SCH - Income Tax

Maintainability of appeal before Supreme Court - monetary limit for filing appeals/SLPs in income-tax matters before the Supreme Court - low tax effect - computation of tax effect - HELD THAT - As Circular dated 8th August, 2019 issued the Director (ITJ), CBDT, New Delhi, a copy of which is placed on record. As per the Circular, the tax effect limit (monetary limit) for filing appeals/SLPs in income-tax matters before the Supreme Court is fixed at Rs.2,00,00,000 (Rupees Two Crores). In the present case total quantum involved is Rs.2,71,76,799/- (Rupees Two Crores Seventy-one Lakhs Seventy-six Thousand Seven Hundred and Ninety nine). The tax effect at the rate of 33.99% of the total quantum will be Rs.92,37,393/ (Rupees Ninety-two lakhs Thirty-seven Thousand Three Hundred and Ninety-three). As the case is covered by the aforestated Circular, we dispose of this Special Leave Petition on that ground. However, the questions of law are left open.

Summary

Issues involved: Determination of tax effect for filing appeals/SLPs in income-tax matters before the Supreme Court based on a Circular dated 8th August, 2019.

Summary:
The Supreme Court, comprising HON'BLE MR. JUSTICE ABHAY S. OKA and HON'BLE MR. JUSTICE UJJAL BHUYAN, heard the matter. The respondent's counsel presented a computation of the tax effect, amounting to Rs.2,71,76,799. The tax effect at 33.99% of this total sum equated to Rs.92,37,393. The respondent relied on a Circular dated 8th August, 2019, which set the tax effect limit for filing appeals/SLPs in income-tax matters before the Supreme Court at Rs.2,00,00,000.

The Court, considering the Circular, disposed of the Special Leave Petition based on the monetary limit specified therein. However, it was noted that the questions of law in the case were left open for future consideration. Any pending applications were directed to be disposed of in accordance with this order.