2025 (1) TMI 660 - SCH - Income Tax

Maintainability of appeal on low tax effect - limit for challenging orders before this Court - Validity of Reopening of assessment - validity of reasons to believe - change of opinion - disallowance of improvement cost of land claimed by the assessee and the assessee had shown the sale of the land under the head of short term capital gain - As decided by HC 2020 (7) TMI 573 - MADRAS HIGH COURT law does not require the assessee to state the conclusion that could reasonably be drawn from the primary facts and if there were, in fact, some reasonable grounds for thinking that there had been any non-disclosure as regards any primary facts, which could have a material bearing on the question of under assessment , that would be sufficient to give jurisdiction to the ITO to issue notices under Section 34 (1922 Act) and whether these grounds are adequate or not for arriving at a conclusion that there was a non-disclosure of material facts could not be opened for the Court's investigation. Tribunal was right in allowing the assessee's appeal. HELD THAT - From the listing proforma and from the synopsis, it is very clear that the tax effect is in the sum of Rs.62,52,661/- (Rupees Sixty Two Lakhs Fifty Two Thousand and Six Hundred and Sixty One). Our attention is invited to circulars dated 15th March, 2024 and 17 th September, 2024. The threshold limit for challenging orders before this Court is Rs.5 crores. In view of the said circulars, the Special Leave Petition is disposed of. However, question of law, if any, is kept open.

Summary

The Supreme Court, presided over by Hon'ble Mr. Justice Abhay S. Oka and Hon'ble Mr. Justice Ujjal Bhuyan, addressed a matter involving a tax effect of Rs. 62,52,661. The Court noted that, according to circulars dated 15th March, 2024, and 17th September, 2024, the threshold limit for challenging orders before the Supreme Court is Rs. 5 crores. Consequently, the Special Leave Petition was disposed of due to the tax amount being below the threshold. The Court stated, "question of law, if any, is kept open," indicating that any legal questions remain unresolved. A pending application related to the matter was also disposed of.