PCIT Vs IPL Loan Trust (Bombay High Court)
The Bombay High Court addressed several appeals, including PCIT vs. IPL Loan Trust, which were initially slated for withdrawal due to CBDT Circulars 05/2024 and 09/2024. These circulars pertain to cases where the tax effect is less than Rs. 2 crores. The Revenue argued that the appeals fell within certain exceptions outlined in Circular No. 05/2024, specifically paragraph 3.1(h), which concerns cases involving organized tax evasion. The Respondents countered, citing legal precedent, that the circulars have a dual application: retrospective for withdrawing appeals below the monetary limit, but only prospective for applying the exceptions.
The court sided with the Respondents, referencing prior decisions from a Coordinate Bench and the Rajasthan High Court. These decisions established that the exceptions in the CBDT circulars should be applied prospectively. The court emphasized the distinction in the circulars’ application, noting that while the withdrawal of pending appeals below the prescribed monetary limit was intended to be retrospective, the exceptions were meant to apply only to appeals filed after the circular’s issuance. Consequently, as the Revenue insisted on pursuing the appeals, the court disposed of them, aligning with the approach taken in similar previous cases. The court also granted the appellants the liberty to seek revival or restoration of the appeals under specific conditions, and ordered refund of court fees as per rules.
