Disposed¶39

The Income Tax OFFICER-1(2) v. M/S Gurunanak Rice Industries Arang Road

Chhattisgarh HC8 Apr 2025TAXC/30/2025

Case brief

AI extract

What is this about?

Chhattisgarh HC Bilaspur, TAXC No. 30 of 2025, decided 09.04.2025 by Division Bench (Sanjay K. Agrawal & Deepak Kumar Tiwari, JJ.): departmental income-tax appeal by Income Tax Officer-1(2), Raipur against M/s Gurunanak Rice Industries disposed of because the tax liability is less than Rs. 2 crore, the revised High Court filing limit under the CBDT circular dated 17.09.2024 issued under section 268A of the Income-tax Act, 1961.

What did the court decide?

The instant Tax Case (departmental appeal by the Income Tax Officer against M/s Gurunanak Rice Industries) stands disposed of in view of the circular (Para-5) dated 17/09/2024, as the tax liability in the case is less than Rs.2 Crores; no other relief is specified. ¶39

The Income Tax OFFICER-1(2) Vs M/S Gurunanak Rice Industries… — Income Tax | Chhattisgarh HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the present departmental income-tax appeal, in which the tax liability of the assessee is less than Rs. 2 crores, may be disposed of finally in light of the CBDT circular dated 17.09.2024 revising the monetary limits for filing Income Tax Appeals by the department before the High Court.

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Court's answer

Since the monetary limit (tax liability) in the present case is less than Rs.2 Crores, in light of the circular (Para-5) dated 17/09/2024, the instant Tax Case stands disposed of.

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Ratio / Principle

The appellant's prayer to dispose of the appeal finally in view of the circular dated 17/09/2024 was found by the Court to be fair and reasonable.

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Detailed headnote1 paragraphs

High Court of Chhattisgarh at Bilaspur, Division Bench (Justice Sanjay K. Agrawal, authoring, and Justice Deepak Kumar Tiwari), TAXC No. 30 of 2025, judgment on board 09.04.2025. Appellant: The Income Tax Officer-1(2), Raipur (Chhattisgarh); Respondent: M/s Gurunanak Rice Industries, Raipur. At hearing, counsel for the appellant (Shri Ajay Kumrani for Shri Amit Chaudhari) submitted that the Government of India, Ministry of Finance circular dated 17.09.2024 - issued under section 268A of the Income-tax Act, 1961 and revising the monetary limits in Circular No.5/2024 dated 15.03.2024 - raised the monetary limit for filing departmental Income Tax Appeals before the High Court to Rs. 2 crores, whereas the tax liability in the present case is less than Rs. 2 crores; the appeal may therefore be disposed of finally. The Court found the prayer fair and reasonable and, citing para 5 of the circular dated 17/09/2024, disposed of the instant Tax Case. The circular's revised limits (quoted for ready reference): Rs. 60 lakh (ITAT), Rs. 2 crore (High Court), Rs. 5 crore (Supreme Court).

2025:CGHC:16666-DB

NAFR

Digitally signed by AVINASH AVINASHSHARMA SHARMADate:2025.04.09 19:31:11 +0530

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HIGH COURT OF CHHATTISGARH AT BILASPUR

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TAXC No. 30 of 2025

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The Income Tax OfÏcer-1(2) Raipur (Chhattisgarh).

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... Appellant.

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versus

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M/s Gurunanak Rice Industries Arang Road Budera Kharora, Raipur (Chhattisgarh)- 493225, PAN- AAJG5160A.

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... Respondent.

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: For Appellant Shri Ajay Kumrani appears on behalf of Shri Amit Chaudhari, Advocates.

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Division Bench

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Hon'ble Shri Justice Sanjay K. Agrawal & Hon'ble Shri Justice Deepak Kumar Tiwari

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Judgment on Board

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(09.04.2025)

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Sanjay K. Agrawal, J.

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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

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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 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.

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The said prayer appears to be fair and reasonable.

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For ready reference, relevant paragraphs of said circular dated 17/09/2024 is quoted hereinbelow:

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“1. Reference is invited to Circular No.5/2024(F.No.279/Misc.142/2007-

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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

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follows:-

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S.No	Appeals/SLPs in Income-tax matters	Monetary Limit(Tax effect in Rs.)
1.	Before Income Tax	60 lakh

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	Appellate Tribunal
2.	Before High Court	2 crore
3.	Before Supreme Court	5 crore

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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 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.

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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 ofÏcers 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

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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 Court/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

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Income- tax Act, 1961.

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Hindi version will follow.”

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In view 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.

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Sd/Sd/- (Sanjay K. Agrawal) (Deepak Kumar Tiwari) Judge Judge

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Avinash

The Income Tax OFFICER-1(2) v. M/S Gurunanak Rice Industries Arang Road

Case brief

What is this about?

What did the court decide?

The Income Tax OFFICER-1(2) v. M/S Gurunanak Rice Industries Arang Road

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Parties & counsel

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