The Karnataka High Court has dismissed the income tax appeal filed by the department as the monetary value involved in appeals less than Rs. 1 crore.
The bench of Justice S.G.Pandit and Justice C.M. Poonacha has observed that appeals would not be maintainable since monetary value involved in these appeals is less than rupees one crore. Therefore, the appeals would not survive for consideration and they are dismissed.
The department filed the appeals. Monetary value involved in the appeal was Rs. 76,50,017 and Rs. 74,56,741 respectively. Subsequent to filing of the appeals, Circular bearing No.5/2024 dated 15.3.2024 was issued under Section 265(A) of the Income Tax Act, 1961 prescribing monetary limit to prefer an appeal before the High Court.
In view of the Circular, the appeals would not be maintainable since monetary value involved in these appeals is less than rupees one crore. Therefore, the appeals would not survive for consideration and they are dismissed.
Read more: https://www.jurishour.in/value-stamp-authority-agreement-transfer-income-tax/
Monetary limits for filing of appeals by Income Tax Department further enhanced by CBDT
There is a substantial pendency of appeals of the Income Tax Department before various appellate fora. The CBDT is aware of the importance of litigation management and has been continuously working towards achieving the same.
To effectively reduce taxpayer grievances/litigation and help the Department focus on litigation involving complex legal issues and high tax effect, the monetary limits for filing of appeals by the Department were last revised on 11th July,2018 vide CBDT Circular No.3 of 2018. As a step towards further management of litigation by the Government, the monetary limits for filing Departmental appeals before various appellate fora including ITAT, High Court & Supreme Court have been revised as under:
| Appellate Forum | Existing Monetary Limit(Rs.) | Revised Monetary Limit(Rs.) |
| Before Income Tax Appellate Tribunal | 20,00,000 | 50,00,000 |
| Before High Court | 50,00,000 | 1,00,00,000 |
| Before Supreme Court | 1,00,00,000 | 2,00,00,000 |
This will further reduce time, effort and resources presently deployed in litigation to focus on issues involving litigation of substantial value.
Therefore the court dismissed the appeal.
Case Details
Case Title: PCIT Versus Confident Projects India Pvt. Ltd.
Citation: Income Tax Appeal No. 469 Of 2022 C/W Income Tax Appeal No. 470 Of 2022
Decision date: 19/08/2024
