INCOME TAX OFFICER, WARD-4, VERAVAL, VERAVAL vs. JAHIR ABDUL HAFIJ KHAN, VERAVAL

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ITA 734/RJT/2024Status: DisposedITAT Rajkot04 May 2026AY 2010-113 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that CBDT Circular No. 09/2024, which increased the monetary limit for filing appeals before the Tribunal to Rs. 60,00,000/-, is binding on the Revenue. Since the tax effect was below this limit, the appeal was not maintainable.

What were the facts?

The Revenue filed an appeal against an order of the CIT(A) which deleted an addition of Rs. 34,50,000/- relating to bogus purchases. The tax effect in this appeal was less than Rs. 60,00,000/-.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT given the revised monetary limits prescribed by CBDT Circular No. 09/2024, when the tax effect is below the stipulated limit.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Appellant: Shri R. D. Lalchandani, Ld. AR
For Respondent: Shri Dheeraj Kumar Gupta, Ld. Sr. DR
Hearing: 06/02/2026

आयकर अपील�य अ�धकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, “SMC” Rajkot Bench, Rajkot

Before Dr. Arjun Lal Saini, Accountant Member आयकरअपीलसं./ITA No. 734/RJT/2024 (�नधा�रणवष�/Assessment Year: (2010-11) ITO, Ward – 4, Jahir Abdul Hafij Khan, Room No. 3, Yogeshwar Bhavan, Nr. Vs. C/O. Reliable Trading, Co. 813, Ambaji Temple, Bus Stamd Road, GIDC, Somnath Road, Veraval – 362265, Gujarat Veraval – 362269, Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AYIPK1129J (अपीलाथ�/Appellant) (��यथ�/Respondent)

Appellant by : Shri R. D. Lalchandani, Ld. AR Respondent by : Shri Dheeraj Kumar Gupta, Ld. Sr. DR Date of Hearing : 06/02/2026 : 04/05/2026 Date of Pronouncement

ORDER Per, Dr. Arjun Lal Saini, AM:

The present appeal has been filed by the Assessee, against the order passed by the Learned Commissioner of Income Tax (Appeal), National Faceless Appeal, Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] dated 25.07.2024, which in turn arises out of an assessment order passed u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2010-11.

ITA No. 734/Rjt/2024 Jahir Abdul Hafji Khan 2. In this revenue’s appeal in ITA No. 734/RJT/2024, I noticed that revenue has raised ground in respect of addition deleted by the ld. CIT(A),which relates to bogus purchase of Rs.34,50,000/- on which total tax comes to Rs.10,13,755/-, which comes in the ambit of tax effect of CBDT Circular vide Circular No. 09/2024 dated 17.09.2024.

3.

The CBDT has issued Circular No. 09/2024 dated 17.09.2024, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs.60,00,000/- 2. Before High Court Rs.2,00,00,000/- 3. Before Supreme Court Rs.5,00,00,000/-

4.

In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. Though this appeal had been filed by the revenue on 20/09/2024 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, in view of the recent Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.09/2024 referred to above.

5.

It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs. Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with

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ITA No. 734/Rjt/2024 Jahir Abdul Hafji Khan regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute. The appeal under consideration has certainly been filed contrary to the Circular issued by the CBDT Circular No.09/2024 dated 17.09.2024.

6.

In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

7.

In the result, the appeal of the Revenue(in ITA No. 734/RJT/2024 for AY.2010-11) is dismissed.

Order is pronounced in the open court on 04/05/2026.

Sd/- (Dr. Arjun Lal Saini) लेखा सद�/Accountant Member राजकोट/Rajkot िदनांक/ Date: 04/05/2026 Copy of the order forwarded to :  The assessee  The Respondent  CIT  The CIT(A)  DR, ITAT, RAJKOT  Guard File /True copy/ By order //True Copy// Assistant Registrar/Sr. PS/PS ITAT, Rajkot

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