Disposed¶31

Assistant Commissioner of Income Tax v. M/S South Eastern Coalfields Limited

Chhattisgarh HC7 Feb 2025TAXC/8/2020

Case brief

AI extract

What is this about?

Chhattisgarh High Court, Bilaspur; TAXC No.8 of 2020; Assistant Commissioner of Income Tax Circle-1 Bilaspur (Appellant, counsel Shri Ajay Kumrani) versus M/s South Eastern Coalfields Limited (Respondent, counsel Shri Mohit Kumar); disposal of Departmental income-tax appeal on monetary-limit ground; circular dated 17.09.2024 revising monetary limits (Rs.2 crores for High Court appeals); tax liability less than Rs.2 Crores; section 268A, Income-tax Act, 1961; decision dated 04.07.2025; Bench: Sanjay K. Agrawal and Deepak Kumar Tiwari, JJ.

What did the court decide?

The instant Tax Case stands disposed of at the request of learned counsel for the Appellant, in view of the circular dated 17.09.2024, the tax liability being less than Rs.2 Crores; the appeal was not decided on merits. ¶31

Assistant Commissioner of Income Tax Vs M/S South Eastern… — Income Tax | Chhattisgarh HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the present Tax Case Appeal filed by the Department may be disposed of in view of the circular dated 17.09.2024, under which the monetary limit for filing Income Tax Appeals by the Department before the High Court has been enhanced to Rs.2 crores, the tax liability in the present case being less than Rs.2 Crores.

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Court's answer

The prayer made by learned counsel for the Appellant that, in view of the circular dated 17.09.2024 raising the monetary limit for departmental appeals before the High Court to Rs.2 crores, the present appeal be disposed of finally, appears to the Court to be fair and reasonable and is accepted.

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Ratio / Principle

Since the monetary limit (tax liability) in the present case is less than Rs.2 Crores and in the light of the circular dated 17.09.2024, the instant Tax Case stands disposed of.

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Detailed headnote1 paragraphs

Departmental income-tax appeal (TAXC No.8 of 2020) before the High Court of Chhattisgarh at Bilaspur — Assistant Commissioner of Income Tax Circle-1, Bilaspur v. M/s South Eastern Coalfields Limited — Counsel for the Department submitted that under the circular dated 17.09.2024 the monetary limit for filing Income Tax Appeals by the Department before the High Court has been enhanced to Rs.2 crores, and that the tax liability of the assessee in the present case is below that limit — Court found the prayer fair and reasonable and disposed of the Tax Case accordingly, without adjudication on merits. Relevant paragraphs of the circular (which issues under section 268A of the Income-tax Act, 1961 and revises limits to Rs.60 lakhs before ITAT, Rs.2 crores before High Courts and Rs.5 crores before the Supreme Court) are reproduced in the judgment. Coram: Sanjay K. Agrawal and Deepak Kumar Tiwari, JJ.; judgment by Sanjay K. Agrawal, J.

2025:CGHC:30603-DB

NAFR

HIGH COURT OF CHHATTISGARH AT BILASPUR

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TAXC No.8 of 2020

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Assistant Commissioner Of Income Tax Circle-1, Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh ... Appellant

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versus

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M/s South Eastern Coalfields Limited Seepat Road, Bilaspur Chhattisgarh. ... Respondent

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For Appellant : Shri Ajay Kumrani, Advocate. For Respondent : Shri Mohit Kumar, Advocate.

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Hon'ble Shri Sanjay K. Agrawal and Hon'ble Shri Deepak Kumar Tiwari, JJ.

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Judgment On Board (04.07.2025)

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Digitally signed by SISTLA NEELIMA VISHNU PRIYA Date: 2025.07.07 10:49:28 +0530

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Sanjay K. Agrawal, J.

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When the case is taken for hearing, learned counsel for the Appellant submits 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, in the present case, the tax

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liability of the assessee is less than Rs.2 Crores, therefore, in the light of the aforesaid circular dated 17.09.2024, the present Appeal may be disposed of finally.

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The said prayer appears to be fair and reasonable.

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For ready reference, relevant paragraphs of the circular dated

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17.09.2024 are quoted below:-

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“1. Reference is invited to Circular No 5/2024 (F.No.279/Misc.142/2007-ITJ(Pt) dated15.03.2024 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.

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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:-

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S.No .	Appeals/SLPs in income-tax matters	Monetary Limit (Tax effect in Rs.)
1.	Before Income Tax Appellalte Tribunal	60 lacs
2.	Before High Court	2 crores
3.	Before Supreme Court	5 crores

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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 IncomeTax 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.

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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.

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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 the SLPs/ Appeals pending before Supreme Courts/High Courts/Tribunal, which may accordingly be withdrawn.

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The above may be brought to the notice of all concerned.

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This issues under section 268A of the Income-tax Act, 1961.

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Hindi version will follow.”

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In view of the aforesaid submissions of learned counsel for the Appellant where monetary limit (tax liability) in the present case is less than Rs.2 Crores and in the light of aforesaid circular (Para-5) dated

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17.09.2024, the instant Tax Case stands disposed of .

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Sd/- Sd/-

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(Sanjay K. Agrawal) (Deepak Kumar Tiwari ) Judge Judge

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Priya

Assistant Commissioner of Income Tax v. M/S South Eastern Coalfields Limited

Case brief

What is this about?

What did the court decide?

Assistant Commissioner of Income Tax v. M/S South Eastern Coalfields Limited

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

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Coram

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