Revenue's tax appeal against a Tribunal order was dismissed because the tax effect fell below the CBDT Circular No.9 of 2024 monetary limit. The court held that neither Circulars No.5 of 2024 nor No.3 of 2018 contain an audit-objection exception permitting low tax effect appeals.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
T.C.A.No.179 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12.11.2024
CORAM
THE HON'BLE MR.JUSTICE R.SURESH KUMAR AND THE HON'BLE MR.JUSTICE C.SARAVANAN
Tax Case Appeal No.179 of 2024
The Principal Commissioner of Income Tax-I Chennai.
... Appellant
Vs.
Shri Parthiban
... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai, dated 21.10.2022 in I.T.A.No.562 of 2020.
For Appellant : Mr.Avinash Krishnan Ravi Junior Standing Counsel
J U D G M E N T
(Delivered by R.SURESH KUMAR,J.)
This Tax Case Appeal has been filed by raising the following substantial
questions of law:
" 1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in quashing the reopening of assessment proceedings on the ground that there was a change of opinion especially when the AO had not formed any opinion in the first instance?
T.C.A.No.179 of 2024
the appellant / Revenue submits that, though the monetary limit is less than the tax effect as per the recent CBDT's Circular No.9 of 2024 dated 17.09.2024, the exception clauses which are available in Para Nos.3.1 and 3.2 of the earlier Circular in Circular No.5 of 2024 dated 15.03.2024 would mutatis mutandis be made applicable to this Circular also. Under Para Nos. 3.1 and 3.2 of the said circular No.5, the circumstances of exceptions are provided, where even low tax effect appeals can be preferred either before the Tribunal or before the High Court or before the Supreme Court.
the appellant, there has been an audit objection, based on which alone the assessment order since has been passed, that issue is one of the exception clauses covered under Para 3.1 of the Circular dated 15.03.2024. Therefore, even though it is a case of low tax effect on the quantification of tax, still the Revenue can present the appeal notwithstanding anything contained in Circular
T.C.A.No.179 of 2024
No.9 of 2024 dated 17.09.2024. Hence, the learned counsel for the Revenue
seeks admission of this case by taking into consideration the said submission made by him.
No.5 of 2024 dated 15.03.2024, the same is extracted hereunder:
T.C.A.No.179 of 2024
forums like the Tribunal, High Court or Supreme Court, if the monetary limit even though is less than the tax limit as per Circular No.9 of 2024, still appeals can be filed in case of exceptions provided under Para 3.1 or 3.2 of Circular No.5 of 2024 as stated supra.
"10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in Para 3 above or there is no tax effect:
T.C.A.No.179 of 2024
Circular No.5 dated 15.03.2024, since similar exceptions have been provided in Circular No.5 dated 15.03.2024 in Paras 3.1 and 3.2, which we have extracted herein above, where also there is no such exception, such as audit objection, provided, and therefore the contention of the learned counsel for the appellant has to be rejected.
(R.S.K.,J.) (C.S.N.,J.) 12.11.2024
NCS : Yes/No Index : Yes/No KST
T.C.A.No.179 of 2024
R.SURESH KUMAR, J. AND C.SARAVANAN, J.
KST
To
The Income Tax Appellate Tribunal 'A' Bench, Chennai.
T.C.A.No.179 of 2024
12.11.2024
1 issue framed by the court
Whether the Revenue's appeal could proceed notwithstanding that its tax effect fell below the monetary limit under CBDT Circular No.9 of 2024, on the claimed audit-objection exception.
2 provisions across 2 enactments
The Principal Commissioner of Income Tax-I Chennai
Shri Parthiban
R.Suresh Kumar
C.Saravanan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
