DEPUTY COMMISSIONER INCOME TAX V. NARAD SAHU

TAXC/116/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax against Narad Sahu concerning a tax liability. The appellant's counsel referred to a new circular dated 17/09/2024 issued by the Ministry of Finance, which revised the monetary limits for filing appeals in tax matters. According to the circular, appeals will only be filed if the tax effect exceeds Rs. 2 Crores. Given that the tax liability in this case is below the specified limit, the appellant requested the court to dispose of the appeal accordingly. The court found the request to be fair and reasonable and disposed of the case based on the new guidelines.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 719970 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 16-06-2025
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: AJAY KUMRANI
• Keywords: Circular; Income tax appeal; Monetary limits; Tax liability
• Section: 268A

Judgement Text

"1 2025:CGHC:24738-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR TAXC No. 116 of 2025 1 - Deputy Commissioner Income Tax Aayakar Bhawan, Civil Lines, Raipur, Chhattisgarh. ...Appellant. versus 1 - Narad Sahu Gudhiyari, Raipur, District Raipur, Chhattisgarh Pan – BDZPS0772E. ... Respondent(s) For Appellant : Shri Ajay Kumrani appears on behalf of Shri Amit Chaudhari, Advocates. Division Bench Hon'ble Shri Jus tice Sanjay K. Agrawal & Hon'ble Shri Justice Deepak Kumar Tiwari Judgment on Board (16.06.2025) Sanjay K. Agrawal, J. 1. When case is taken for hearing learned counsel for the appellant would submit that the Government of India, Ministry of Finance has issued a new circular dated 17.09.2024, in which monetary limits for filing Income Tax Appeals by the department before the High Court has been enhanced to Rs.2 Crores, whereas AVINASH SHARMA Digitally signed by AVINASH SHARMA Date: 2025.06.17 17:55:09 +0530 2 in the present case the tax liability of assess is less than Rs.2 Crore. Therefore, in light of aforesaid circular dated 17/09/2024, the present appeal may be disposed of finally. 2. The said prayer appears to be fair and reasonable. 3. For ready reference, relevant paragraphs of said circular dated 17/09/2024 is quoted hereinbelow: “1. Reference is invited to Circular No.5/2024(F.No.279/Misc.142/2007- ITJ(Pt)) dated 15.03.2024 of Central Board of Direct Taxes (the 'Board') vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLP/appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular. 2. As a step towards management of litigation, it has been decided by the Board to revise the monetary limits for filing of appeals in Income-tax cases as stated in Para 4.1 of the aforementioned Circular as follows:- S.No Appeals/SLPs in Income-tax matters Monetary Limit (Tax effect in Rs.) 1. Before Income Tax Appellate Tribunal 60 lakh 2. Before High Court 2 crore 3. Before Supreme Court 5 crore 3 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 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. 4. It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an appeal. 5. The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to 4 the SLPs/ appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn. 6. The above may be brought to the notice of all concerned. 7. This issues under section 268A of the Income- tax Act, 1961. 8. Hindi version will follow.” 4. In view of aforesaid submission of learned counsel for the appellant where 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. Sd/- Sd/- (Sanjay K. Agrawal) (Deepak Kumar Tiwari) Judge Judge Avinash "