Bombay High Court
Pr.Commissioner Of Income Tax-19 vs Steel Line(India) on 17 December, 2025
Author: B. P. Colabawalla
Bench: B. P. Colabawalla
2025:BHC-OS:25997
30-ITXA-822-2019.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO. 822 OF 2019
Pr. Commissioner of Income Tax-19 .. Appellant
Versus
Steel Line (India) .. Respondent
Mr. Suresh Kumar, for the Appellant.
Ms. Aasifa Khan, for the Respondent.
CORAM: B. P. COLABAWALLA &
AMIT S. JAMSANDEKAR, JJ.
DATE: DECEMBER 17, 2025
P. C.
1. The above Appeal has been placed on board for directions today because we find that the tax effect in this Appeal is less than Rs. 2 Crores as stated in CBDT Circular No.9 of 2024 dated 17th September 2024.
2. The learned Counsel appearing on behalf of the Revenue submitted that the present Appeal was lodged on 27th April 2018, and on that date, it was above the monetary limit prescribed by Circulars issued by the CBDT at that time. Once this is the case, he submitted that there was no infirmity in prosecuting this Appeal, notwithstanding the fact that by the latest Circular, the subject matter of the Appeal today would be below Page 1 of 4 DECEMBER 17, 2025 Darshan Patil 30-ITXA-822-2019.doc monetary limits set out in the CBDT Circular No. 9 of 2024 dated 17th September 2024.
3. In addition to the aforesaid argument, the learned Counsel for the Revenue submitted that the present Appeal falls within the exception introduced in the Circular dated 20th August 2018, and more particularly the exception that reads as "(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI)". Since the above Appeal falls within the above excepted category, the above Appeal can be entertained notwithstanding that today it is below the monetary limit as set out in the CBDT Circular dated 17th September 2024.
4. We have considered the Revenue's contentions. The precedent on this subject/contention of the Revenue, is set out in the case of The Principal Commissioner of Income Tax v/s Premier Industrial Corporation Ltd [(2025) 172 Taxmann.com 289 (Bom)]. Paragraphs 7 and 8 of this decision read thus:-
"7. The CIT v. V. M. Salgaonkar and Brothers (P) Ltd. [2024] 169 taxmann.com 597 (Bombay), our orders dated 05 February 2025 in Income Tax Appeal No. 643 of 2018 concerning Pr. CIT v. IPL Loan Trust [2025] 171 taxmann.com 725 and connected matters and order dated 12 February 2025 in Income Tax Appeal No.1998 of 2018 (Pr. CIT v. Axis AD Print Media (India) Ltd.) and connected appeals hold that the monetary limits prescribed in CBDT Circulars Page 2 of 4 DECEMBER 17, 2025 Darshan Patil 30-ITXA-822-2019.doc would apply to pending appeals. Still, the exceptions carved out by the CBDT Circulars would apply only prospectively i.e. from the date of the introduction of such exception.
8. Admittedly, before 20 August 2018, these appeals were not covered by any exceptions. However, these appeals were filed because they were beyond the monetary limits prescribe then. The monetary limits have now been revised. These revised monetary limits would also apply to the pending appeals as held in the above precedents. By applying the revised monetary limits to the pending appeals and noting that the exception upon which the Revenue relies was unavailable before 20 August 2018, we uphold the objection on behalf of the assessee and dispose of these two appeals without any cost orders".
(emphasis supplied)
5. As can be seen from this reproduction, this Court has time and again held that the monetary limits prescribed in the CBDT Circulars will apply to pending Appeals as well. In other words, for the purposes of the monetary limits, the Circular dated 17th September 2024 would apply to the present Appeal. However, this Court has also held time and again that the exceptions carved out by the CBDT Circulars would apply only prospectively, and would have no application if they were introduced after the filing of the Appeal. Admittedly, in the present case, the Appeal was lodged on 27th April 2018, while the exception the Revenue relies upon was introduced vide Circular dated 20th August 2018. Hence, the exception relied upon by the Revenue in the Circular dated 20 th August 2018 cannot be a justification for prosecuting the above Appeal that was lodged on 27th April 2018. Page 3 of 4
DECEMBER 17, 2025 Darshan Patil 30-ITXA-822-2019.doc
6. In light of the aforesaid discussion, this Appeal is accordingly disposed of because the tax effect is below the monetary limits as set out in the CBDT Circular dated 17th September 2024. However, there shall be no order as to costs.
7. We make it clear that the questions of law as projected by the Revenue in the above Appeal are kept open to be considered in an appropriate case.
8. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order. [AMIT S. JAMSANDEKAR, J.] [B. P. COLABAWALLA, J.] Page 4 of 4 DECEMBER 17, 2025 Darshan Patil Signed by: Darshan Patil Designation: PA To Honourable Judge Date: 23/12/2025 12:55:44