RANCHI, India, March 28 -- Jharkhand High Court issued the following order on Feb. 25:
1. Heard learned counsel for the parties.
2. In this case, the tax effect is admittedly below Rs. 2 crores. However, Mr. Kumar Vaibhav, learned counsel for the appellant-Revenue submits that the matter falls within the exception under para 10(c) of the CBDT Circular No. 3 of 2018 dated 11.07.2018 which provides that adverse judgments relating to issues where Revenue Audit Objection in the case has been accepted by the department should be contested on merits notwithstanding the tax effect entailed is less than the prescribed monetary limits or there is no tax effect.
3. We have considered Mr. Kumar Vaibhav's submission but we are unable to agree.
4. The CBDT's latest Circular No. 5 of 2024 dated 15.03.2024 supersedes the previous circulars which would include Circular No. 3 of 2018 dated 11.07.2018. In Circular No. 5 of 2024 dated 15.03.2024 and 9 of 2024 dated 17.09.2024, there is no similar exception carved out. The tax effect limits specified in Circular No. 5 of 2024 dated 15.03.2024 would apply to pending appeals like the present one.
5. Therefore, on the grounds of low tax effect, we dispose of this appeal by leaving the questions of law open.
6. In similar circumstances, the Division Bench of the High Court of Bombay, in the case of Principal Commissioner of Income Tax-15 Vs. Sulzer Pumps India Limited, 2025 SCC OnLine Bom. 2646 had rejected the revenue's contention based upon earlier CBDT Circulars and disposed of the appeal in which the tax effect was below the enhanced tax limits prescribed under the later Circulars issued by the CBDT.
7. Pending Interlocutory Applications, if any, do not survive and are disposed of.
Disclaimer: Curated by HT Syndication.
