ACIT Vs Vandana Ispat Ltd (Chhattisgarh High Court)
Chhattisgarh High Court disposes of an income tax appeal against Vandana Ispat Ltd, citing a new government circular that raises the monetary limit for filing appeals to ₹2 crores.
Chhattisgarh High Court on Income Tax Appeal Monetary Limit
The Chhattisgarh High Court has disposed of an income tax appeal filed by the Assistant Commissioner of Income Tax (ACIT) against Vandana Ispat Ltd. The decision was based on a new circular issued by the Ministry of Finance dated September 17, 2024. This circular revised the monetary limits for the Income Tax Department to file appeals. According to the revised rules, the minimum tax effect required for an appeal before the High Court has been increased to ₹2 crores.
The court noted that the tax liability in this specific case was less than the newly prescribed ₹2 crore limit. The court also highlighted a crucial clarification from the circular, which states that an appeal should not be filed simply because the tax effect exceeds the monetary limit. The circular advises officials to consider the overall objective of reducing unnecessary litigation and providing certainty to taxpayers when deciding whether to pursue an appeal. The new rules apply to both future appeals and those that are currently pending, allowing for their withdrawal.
