2025 (2) TMI 1180 - 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 Hon'ble Justice Sanjay K. Agrawal, disposed of the present Income Tax appeal on the basis of a recent Government of India, Ministry of Finance circular dated 17.09.2024. The circular revises monetary limits for filing Income Tax appeals by the department before various forums, increasing the limit before the High Court to Rs. 2 Crores. Since the tax liability in the present case is below Rs. 2 Crores, the appeal was disposed of in accordance with the circular.Key excerpts from the circular include:- Monetary limits for filing appeals: Rs. 60 Lakhs before ITAT, Rs. 2 Crores before High Court, and Rs. 5 Crores before Supreme Court.- Appeals should not be filed merely because the tax effect exceeds these limits; decisions must be taken on merits to reduce unnecessary litigation and provide certainty to taxpayers.- The circular applies prospectively and to pending appeals, which may be withdrawn.- Issued under section 268A of the Income-tax Act, 1961.The Court held that "in light of aforesaid circular dated 17/09/2024," the appeal is disposed of, emphasizing adherence to the revised monetary limits and the objective of reducing frivolous litigation.