CIT Vs Park Air System (Bombay High Court)
Material Facts
The Revenue’s appeal was placed before the Bombay High Court because the tax effect was below the monetary limit of Rs. 2 crores prescribed under CBDT Circular No. 9 of 2024 dated 17 September 2024.
The Revenue submitted that the appeal had been filed on 10 April 2023, when the tax effect exceeded the monetary limit then applicable, and therefore there was no infirmity in continuing the appeal despite the subsequent revision of the monetary limits. It also contended that the appeal fell within the exception introduced by the CBDT Circular dated 15 March 2024, particularly paragraph 3.1(l)(ii), permitting the appeal to be entertained despite the revised monetary limits.
The assessee argued that the relied-upon exception related only to disputes concerning TDS/TCS matters in domestic and international taxation and did not apply to the present appeal.
Procedural History
The appeal came up before the Bombay High Court for directions after the Court noted that the tax effect was below the monetary threshold prescribed by CBDT Circular No. 9 of 2024.
Legal Issue
The Court considered:
- Whether the revised monetary limits prescribed by CBDT Circular No. 9 of 2024 dated 17 September 2024 apply to pending appeals.
- Whether an exception introduced by the CBDT Circular dated 15 March 2024 could be invoked for an appeal filed before the introduction of that exception.
Relevant Statutory Provisions/Circulars
- CBDT Circular No. 9 of 2024 dated 17 September 2024.
- CBDT Circular dated 15 March 2024, paragraph 3.1(l)(ii).
Parties’ Submissions
