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Facts
The revenue filed appeals challenging the orders of the Commissioner of Income Tax Appeals for AY 2021-22 and 2022-23. The tax effect in both appeals was stated to be Rs. 1,80,00,000/-. However, the assessee's AR clarified the actual tax effect was below Rs. 60,00,000/-.
Held
The Tribunal held that according to CBDT circular No. 9/2024, the monetary limit for filing appeals before the ITAT was increased to Rs. 60,00,000/-. Since the tax effect in both appeals was below this limit, the appeals were not maintainable.
Key Issues
Whether the appeals filed by the revenue are maintainable before the Tribunal considering the monetary limit prescribed by CBDT circulars.
Sections Cited
254(1)
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PER ARUN KHODPIA, ACCOUNTANT MEMBER: These aforesaid appeals are filed by the revenue challenging the orders of Commissioner of Income Tax Appeals, 54 Mumbai dated 30.05.2025 for A.Y. 2021-22 and 2022-23.
In both the aforesaid appeals the revenue has shown the tax effect of Rs. 1,80,00,000/-.
and 3877/MUM/2025 Cads Properties Private Limited 3. At the very initial stage of the hearing on 17.09.2025, Ld. Authorized Representative of the assessee (in short ‘Ld.AR’) submitted that the amount of addition was picked up as amount of the tax effect and declared by the revenue in the aforesaid appeals, thus the same is a defect in the appeal. He clarified that the actual tax effect for A.Y. 2021-22 is Rs. 48,63,150/- and for A.Y. 2022-23, it is Rs. 50,07,600/- only.
It is submitted by Ld.AR that as per CBDT circular No. 9/2024 dated 17.09.2024, the tax effect for filing of appeal before the Income Tax Appellate Tribunal was increased to 60,00,000/- and as per para 5 of the said circular such modification in the monetary limits has its application on the appeals pending before the Tribunal. Copy of circular is also submitted before us. The submission of the Ld. AR was confronted to the Ld. CIT DR representing the revenue to which he requested for a day’s time for its verification from the assessment records with the ld. Assessing Officer. On next date of hearing i.e. 18.09.2025, Ld. CIT DR conceded that the submission of Ld.AR is correct and acceptable, as the tax effect in both the aforesaid appeals is below the prescribe monetary limit of Rs. 60,00,000/-. Therefore, CBDT’s Circular No. 9/2024 dated 17.09.2024 enhancing the monetary limits of filing of appeal by department before the ITAT would have application to the present appeals.
Having considered the facts and submissions in the present matters. We find that appeal filed by revenue in and 3877/Mum/2025, challenging the respective orders of commissioner of appeals by the department are consist of tax effect below Rs. 60,00,000/-. Therefore, the same are not maintainable, accordingly both the appeals of revenue stand dismissed.
Order pronounced in open court on 18.09.2025.