INCOME TAX OFFICER(EXEMPTIONS), CUTTACK, CUTTACK vs. BLOCK VOLUNTARY ORGANIZATION FOR IMPROVEMENT OF CULTURE AND ECO ENVIRONMENT, CUTTACK

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ITA 266/CTK/2024Status: DisposedITAT Cuttack28 August 2024AY 2021-223 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal fell within the purview of the CBDT circular as the tax effect was below Rs. 50 lakhs. Therefore, the appeal was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT against an order of the CIT(A). The assessee pointed out that the tax effect in the appeal was below the threshold limit stipulated by a CBDT circular for filing appeals.

What were the issues?

Whether the Revenue's appeal should be pursued when the tax effect is below the prescribed monetary limit by the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

For Appellant: Shri Natabar Panda, Adv
For Respondent: Shri S.C.Mohanty, ld Sr DR
Hearing: 28/0Pronounced: 28/0

This is an appeal filed by the revenue against the order of the ld inst the order of the ld CIT(A), NFAC, Delhi CIT(A), NFAC, Delhi dated 14.3.2024 in Appeal No.NFAC in Appeal No.NFAC/2020- 21/10264567, , for the assessment year 2021-2022.

2.

Shri Natabar Panda, Natabar Panda, ld AR appeared for the assessee. Shri S.C.Mohanty, ld Sr DR , ld Sr DR represented on behalf of the revenue. represented on behalf of the revenue.

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3.

When this matter was taken up for adjudication, the learned counsel for the assessee brought to the notice of this Bench to the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the Tribunal in cases where the tax effect does not exceed Rs.50,00,000/- (Rupees fifty lakhs). It is also submitted that the tax effect in this appeal is Rs.4,49,698/-, which is less than the threshold limit.

4.

In reply, the ld. DR did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.50 lakhs in the assessee's case. He, however, left the issue to the Tribunal to pass appropriate order in the matter.

5.

I have considered the rival submissions and perused the CBDT Instruction. I am of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is Rs. 4,49,698/-, which is less than Rs.50 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, I am of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.

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6.

In the result, appeal of the Revenue is dismissed due to low tax effect.

Order dictated and pronounced in the open court on 28/08/2024.

Sd/- (George Mathan) JUDICIAL MEMBER Cuttack; Dated 28/08/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : 1. The Appellant : Income Tax officer (Exemptions), Cuttack 2. The Respondent: Block Voluntary Organisation for Improvement of Culture and Eco-environment, Rautarapur, Ward No.3, Cuttack Sadar 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Cuttack 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// By order Sr.Pvt. Secretary ITAT, Cuttack

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