ACIT Vs B.L. Agrawal (Chhattisgarh High Court)
Chhattisgarh High Court heard the appeal of ACIT vs. B.L. Agrawal, challenging the order passed by the Income Tax Appellate Tribunal (ITAT) and the Commissioner of Income Tax (Appeals) for the assessment year 2009-2010. The issue arose from the assessment order passed by the Assistant Commissioner of Income Tax. During the hearing, the appellant’s counsel referred to the Government of India’s new circular, issued on September 17, 2024, which raised the monetary limits for filing income tax appeals to Rs. 2 Crores for High Courts. The counsel emphasized that the tax liability in the present case was less than this threshold, suggesting that the appeal should be disposed of accordingly.
The counsel for the respondent did not dispute the submission and agreed that the appeal could be disposed of based on the new circular. According to the circular, it was clarified that an appeal should not be filed solely because the tax effect exceeds the prescribed limits; instead, the decision to file an appeal should be based on the merits of the case. Given that the tax effect in the present case was under Rs. 2 Crore, the High Court concluded that the appeal should be disposed of, following the provisions of the circular. Therefore, the appeal was dismissed, with the court confirming that appeals with a low tax effect would not automatically be pursued.
