2025 (1) TMI 1555 - HC - Income Tax

Maintainability of appeal on low tax effect - monetary limits for filing Income Tax Appeals by the department before the High Court - HELD THAT - As 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

The Chhattisgarh High Court, through Justice Sanjay K. Agrawal, disposed of the Income Tax appeal on the ground that the tax liability involved was less than Rs. 2 Crores, referencing the Government of India, Ministry of Finance circular dated 17.09.2024. This circular revised the monetary limits for filing Income Tax appeals by the Department, raising the threshold before the High Court to Rs. 2 Crores. The Court relied on the circular's directive that appeals should not be filed merely because the tax effect exceeds prescribed limits and emphasized that filing decisions must be made on the merits to reduce unnecessary litigation (Circular paras 4 and 5). The Court held that since the present case falls below the revised monetary limit, "the instant Tax Case stands disposed of" in accordance with the circular issued under section 268A of the Income-tax Act, 1961.