Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
The HC dismissed the Government's appeal arising under assessment u/s 143(3) due to non-compliance with threshold limits prescribed by CBDT Circular Nos. 5/2024 and 9/2024, aimed at curbing unnecessary litigation. The Court held that the exception in para 3.1(l) of Circular 5/2024, which excludes appeals stemming from orders under Section 201/201(1A), does not apply to appeals arising from assessments u/s 143(3). Since the tax effect in the present case was below Rs. 2 Crores, the appeal was barred from admission. The Division Bench's prior ruling binds the bench, confirming that appeals with tax implications under the specified monetary threshold are not maintainable before the ITAT or HC, thereby upholding the circulars' intent to limit frivolous Government appeals.
The HC dismissed the Government's appeal arising under assessment u/s 143(3) due to non-compliance with threshold limits prescribed by CBDT Circular Nos. 5/2024 and 9/2024, aimed at curbing unnecessary litigation. The Court held that the exception in para 3.1(l) of Circular 5/2024, which excludes appeals stemming from orders under Section 201/201(1A), does not apply to appeals arising from assessments u/s 143(3). Since the tax effect in the present case was below Rs. 2 Crores, the appeal was barred from admission. The Division Bench's prior ruling binds the bench, confirming that appeals with tax implications under the specified monetary threshold are not maintainable before the ITAT or HC, thereby upholding the circulars' intent to limit frivolous Government appeals.
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