DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2.4, CHENNAI vs. GURUSAMY VARADARAJAN MARKANDAYAN, THOOTHKUDI

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ITA 1498/CHNY/2026Status: DisposedITAT Chennai06 August 2026AY 2016-173 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. However, it held that the appeal was not maintainable as the tax effect was below the monetary limit prescribed by CBDT Circular No.05/2024, and no exceptions applied.

What were the facts?

The Revenue filed an appeal with a delay of 17 days, citing misplaced files. The assessee argued that the appeal was not maintainable due to low tax effect, as per CBDT Circular No.05/2024.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect and the applicability of CBDT Circular No.05/2024.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA

Hearing: 07.07.2026Pronounced: 06.08.2026

PER S. R. RAGHUNATHA, AM :

The present appeal is filed by the assessee against the order dated 30.12.2025 passed by the learned Commissioner of Income Tax (Appeals), Chennai-19 (hereinafter referred to as “ld.CIT(A)”), partly allowing the appeal filed by the assessee against the assessment order dated 27.12.2022 passed

:-2-: ITA. No:1498/Chny/2026. u/s.143(3) r.w.s 153C of the Income Tax Act, 1961 (hereinafter referred to as the “Act”), pertaining to Assessment Year (A.Y.) 2016-17. 2. At the threshold, we observe that there is a delay of 17 days in the filing of the present appeal by the Revenue. The Revenue has furnished an affidavit explaining that there is a delay in filing the appeal, since the files concerned have been misplaced. Upon perusal of the affidavit and after affording due opportunity of hearing from both parties, we are satisfied that the assessee has demonstrated sufficient and reasonable cause for not presenting the appeal within the statutory period prescribed under law. Accordingly, in the interest of justice, the delay in filing the appeal is hereby condoned, and the appeal is admitted for adjudication on merits.

3.

At the outset, during the hearing, the Ld.AR of the assessee submitted that the instant appeal preferred by the Revenue is hit by the CBDT Circular No.05/2024 on 15.03.2024 on account of low tax effect as per the normal provisions. According to him, the tax effect of the appeal is only Rs.2,98,178/- as per the Form 36 filed by the revenue and also the impugned issue does not fall under any of the exceptions provided in para 3.1 of the above mentioned circular. Hence, the ld.AR prayed that the instant appeal filed by the Revenue needs to be dismissed as not maintainable.

4.

The Ld.DR for the department couldn’t controvert the aforesaid contentions of the Ld.AR for the assessee.

5.

We have carefully considered the rival submissions. The CBDT, in exercise of the powers conferred under section 268A of the Income-tax Act, 1961, has issued Circular No.05/2024 dated 15.03.2024, prescribing revised monetary limits for filing departmental appeals with a view to reduce unnecessary litigation. It is a settled proposition of law that such circulars are binding upon the Income-tax Department, and appeals filed in contravention of the prescribed monetary limits are not maintainable unless the case falls within any of the specifically carved out exceptions contained in the Circular.

:-3-: ITA. No:1498/Chny/2026. 6. In the present case, from the records available before us, particularly the details furnished in Form No.36, it is evident that the tax effect involved in the Revenue's appeal is only Rs.2,98,178/-, which is far below the monetary threshold prescribed under the aforesaid CBDT Circular. Further, the Revenue has neither pleaded nor demonstrated that the present case falls under any of the exceptions contemplated in paragraph 3.1 of the Circular. In the absence of any such material, we find no justification for entertaining the present appeal.

7.

Accordingly, respectfully following the binding CBDT Circular No.05/2024 dated 15.03.2024 and in view of the undisputed fact that the tax effect is below the prescribed monetary limit, we hold that the present appeal filed by the Revenue is not maintainable. Consequently, the appeal is dismissed in limine on the ground of low tax effect, leaving the questions of law, if any, open.

8.

In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open court on 06th August, 2026 at Chennai. (मनु कुमार गिरर) (एस. आर. रघुनाथा) (MANU KUMAR GIRI) (S. R. RAGHUNATHA) न्याययक सदस्य/Judicial Member लेखासदस्य/Accountant Member चेन्नई/Chennai, दिन ांक/Dated, the 06th August 2026 Devadas

आदेश की प्रतिलिपि अग्रेपिि/Copy to: 1. अपीलाथी/Appellant 2. प्रत्यथी/Respondent 3.आयकर आयुक्त/CIT– Chennai/Coimbatore/Madurai/Salem 4. ववभागीय प्रनतननधि/DR 5. गार्ा फाईल/GF DEVADAS GOPALANACHARY GOPALANACHARY Date: 2026.08.11 09:12:51 +05'30'

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