DCIT Vs Sanjay Agrawal (Chhattisgarh High Court)
Chhattisgarh High Court has disposed of an income tax appeal filed by the Deputy Commissioner of Income Tax (DCIT) against Sanjay Agrawal, citing a recent circular from the Ministry of Finance that increased the monetary limit for filing appeals before High Courts. The court noted that the tax effect in the present case falls below the newly prescribed threshold of ₹2 crore.
During the hearing, the counsel for the appellant informed the court about the Circular No. 9/2024 (F.No.279/Misc.142/2007- ITJ(Pt)) dated September 17, 2024, issued by the Central Board of Direct Taxes (CBDT). This circular, which revises earlier guidelines, has enhanced the monetary limits for the Income Tax Department to file appeals across various judicial forums. Specifically, for appeals before the High Court, the revised monetary limit for the tax effect is now ₹2 crore, up from previous limits. The circular aims to manage litigation more effectively and provide certainty to taxpayers.
The CBDT circular, issued under Section 268A of the Income-tax Act, 1961, clarifies that these new monetary limits apply to all cases, including those related to TDS/TCS. However, it also specifies exceptions where appeals may still be filed irrespective of the tax effect, based on the merits of the case, as outlined in paras 3.1 and 3.2 of the earlier Circular No. 5/2024 dated March 15, 2024. Crucially, the circular dated September 17, 2024, explicitly states that these modifications come into effect from the date of issue and apply not only to appeals to be filed henceforth but also to pending appeals before the Supreme Court, High Courts, and Tribunals, which “may accordingly be withdrawn.”
