THE PR. COMMISSIONER OF INCOME TAX, PATIALA V. PUNJAB STATE ELECTRICITY BOARD, PSEB HEAD OFFICE, PATIALA

ITA/2/2020

AI Insights

The case involves the Commissioner of Income Tax, Patiala, as the appellant, and the Punjab State Electricity Board as the respondent. The core issue revolved around the decision to file an appeal concerning a tax dispute, which was influenced by the revised monetary limits set forth in Circular No.09/2024. This circular amended the thresholds for filing appeals in tax matters, leading to a strategic decision by the appellant to withdraw the appeal to manage litigation effectively. The court's decision to allow the withdrawal and dismiss the appeal was based on the new guidelines, which emphasized managing litigation by reconsidering the merits and tax effect of the cases.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 746062 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 15-10-2024
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: RADHIKA SURI; PARNIKA SINGLA; ABHINAV NARANG
• Assessee Lawyers: SAURABH KAPOOR
• Keywords: Appeals Withdrawal; Litigation Management; Monetary limits
• Section: 4(1)

Judgement Text

"ITA-2-2020 (O&M) 288-17 IN THE HIGH COURT OF PUNJAB AND HARYANA AT PR. COMMISSIONER OF INCOME TAX M/S PUNJAB STATE CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE Present: Mr. for the Ms. Ms. Parnika Singla, Advocate and Mr. Abhinav Narang, Advocate for the respondent. SANJEEV PRAKASH SHARMA, J.(Oral) 1. Counsel for the appellant submits that in terms of the Circular No.9/2024 dated 17.09.2024 Ministry of Finance, Department of Revenue, Taxes, the monetary limits for filing of the appeals by the department before the ITAT, High Court and SLPs Court amended and following steps have been taken with the purpose to manage litigations: (O&M) Page 1 of 3 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH *** COMMISSIONER OF INCOME TAX, PATIALA Vs. PUNJAB STATE ELECTRICITY BOARD **** HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE ALOK JAIN **** Mr. Saurabh Kapoor, Sr. Standing Counsel for the appellant/Revenue. Ms. Radhika Suri, Sr. Advocate with Ms. Parnika Singla, Advocate and Mr. Abhinav Narang, Advocate for the respondent. **** SANJEEV PRAKASH SHARMA, J.(Oral) Counsel for the appellant submits that in terms of the Circular No.9/2024 dated 17.09.2024 issued by the Government of India, Ministry of Finance, Department of Revenue, Taxes, the monetary limits for filing of the appeals by the department before the ITAT, High Court and SLPs Court have been enhanced and the Circular No.5/2024 has been amended and following steps have been taken with the purpose to manage litigations: IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-2-2020 (O&M) Date of Decision: 15.10.2024 PATIALA . . . . Appellant ELECTRICITY BOARD, PATIALA . . . . Respondent HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA ALOK JAIN Sr. Standing Counsel Radhika Suri, Sr. Advocate with Ms. Parnika Singla, Advocate and SANJEEV PRAKASH SHARMA, J.(Oral) Counsel for the appellant submits that in terms of the Circular bearing issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, the monetary limits for filing of the appeals by the department before the ITAT, High Court and SLPs/Appeals before the Supreme and the Circular No.5/2024 has been amended and following steps have been taken with the purpose to (O&M) .2024 Appellant . . . . Respondent bearing issued by the Government of India, Direct Taxes, the monetary limits for filing of the appeals by the department efore the Supreme and the Circular No.5/2024 has been amended and following steps have been taken with the purpose to PARUL 2024.10.18 12:57 I attest to the accuracy and authenticity of this document ITA-2-2020 (O&M) has been decided by the Board to revise for filing of appeals in Income 4.1 of the aforementioned Circular as follows: Sl. No. 1. 2. 3. regard to filing appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income Act, 1961 with Circular No 5/2024 dated 15.03.2024, where the decision to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits. 2. The modifications have come into effect from the date of issuance of Circular i.e. 17.09.2024, and therefore shall apply be filed apply to the appeals pending before the Supreme and Tribunal, which have been directed to be withdrawn. 3. In view of aforesaid Circula does not fall within the exception clause of Circular No.5/2024 learned counsel 4. Accordingly, we allow the prayer as withdrawn. (O&M) Page 2 of 3 “ 2. As a step towards management of litigation, it has been decided by the Board to revise for filing of appeals in Income-tax cases as stated in Para 4.1 of the aforementioned Circular as follows: Sl. No. Appeals/SLPs in Income-tax matters 1. Before Income Tax Appellate Tribunal 2. Before High Court 3. Before Supreme Court 3. Monetary limits given in paragraph 2 above with regard to filing appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income Act, 1961 with exceptions as per paras 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits. The modifications have come into effect from the date of issuance of Circular i.e. 17.09.2024, and therefore shall apply be filed before the Supreme Court, High Court and Tribunal and also apply to the appeals pending before the Supreme and Tribunal, which have been directed to be withdrawn. In view of aforesaid Circular No.09/2024 dated 17.09.2024, does not fall within the exception clause of Circular No.5/2024 learned counsel prays for withdrawal of the ap Accordingly, we allow the prayer as above as withdrawn. As a step towards management of litigation, it has been decided by the Board to revise the monetary limits tax cases as stated in Para 4.1 of the aforementioned Circular as follows: tax matters Monetary Limit (Tax effect in Rs.) Before Income Tax Appellate 60 lakh 2 crore 5 crore 3. Monetary limits given in paragraph 2 above with regard to filing appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income-tax exceptions as per paras 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits.” The modifications have come into effect from the date of issuance of Circular i.e. 17.09.2024, and therefore shall apply to SLPs/appeals to before the Supreme Court, High Court and Tribunal and also apply to the appeals pending before the Supreme Court, High Court and Tribunal, which have been directed to be withdrawn. No.09/2024 dated 17.09.2024, as the case does not fall within the exception clause of Circular No.5/2024, prays for withdrawal of the appeal No.ITA-2-2020. as above, and the appeal is dismissed The modifications have come into effect from the date of issuance of to SLPs/appeals to before the Supreme Court, High Court and Tribunal and also Court, High Court as the case , dismissed PARUL 2024.10.18 12:57 I attest to the accuracy and authenticity of this document ITA-2-2020 (O&M) 5. All pending applications also stand October 15, 2024 parul 1. Whether speaking/reasoned? 2. Whether reportable? (O&M) Page 3 of 3 All pending applications also stand disposed of (SANJEEV PRAKASH SHARMA , 2024 1. Whether speaking/reasoned? 2. Whether reportable? disposed of accordingly. SANJEEV PRAKASH SHARMA) JUDGE (ALOK JAIN) JUDGE Yes/No Yes/No PARUL 2024.10.18 12:57 I attest to the accuracy and authenticity of this document "