THE ACIT, CIRCLE-6,, AHMEDABAD vs. SHRI BHARAT G. PATEL, AHMEDABAD

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ITSSA 275/AHD/2012Status: HeardITAT Ahmedabad06 February 20253 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable because the tax effect involved was below the revised monetary limit of Rs. 60 Lacs stipulated in CBDT Circular No. 09/2024 dated 17th September, 2024. The Circular explicitly states that the revised monetary limits apply to pending appeals, which should accordingly be withdrawn. Therefore, the appeal was liable to be withdrawn by the Revenue and treated as dismissed. The Tribunal granted the Revenue liberty to approach the Tribunal again if it was found that the case was covered under any of the exceptions mentioned in the said Circular. The specific issue of the addition of seized cash of Rs. 27,13,006/- was not decided on merits.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner of Income-Tax (Appeals)-II, Ahmedabad, dated 21.03.2012. The appeal pertained to the Block Period 1-4-87 to 17-06-97 and was filed under Section 158BD read with Sections 143(3) and 254 of the Income Tax Act. The ITAT had previously dismissed the Revenue's appeal on 28.06.2013. A Miscellaneous Application filed by the Department led to the recall of that order and a fresh hearing was scheduled. During the fresh hearing, it was noted that the tax effect in the appeal was below the prescribed limit of Rs. 60 Lacs, with the disputed amount being the addition of seized cash of Rs. 27,13,006/- and a tax effect of Rs. 19,20,809/-.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given that the tax effect is below the monetary limit prescribed by CBDT Circular No. 09/2024. The Revenue's contention, as presented by the CIT.DR, was that the appeal needed to be withdrawn in accordance with CBDT Circular No. 09/2024 due to the low tax effect. However, the Revenue requested liberty to verify if the case fell under any exceptions to the circular and to approach the Tribunal later if applicable. The Assessee did not present any arguments as none were recorded.

Which sections of the Income-tax Act were involved?

Section 158BD,Section 143(3),Section 254

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: Ms. SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA

For Respondent: Shri Aarsi Prasad, CIT. DR
Hearing: 06/02/2025Pronounced: 06/02/2025

PER SHRI NARENDRA PRASAD SINHA, AM:

This appeal is filed by the Revenue against the order of the Commissioner of Income-Tax (Appeals)-11, Ahmedabad, (in short ‘the CIT(A)’), dated 21.03.2012 for the Block Period 1-4- 87 to 17-06-97 in the proceeding u/s 158BD r.w.s. 143(3) & 254 of the Income Tax Act.

IT(SS)A No. 275/Ahd/2012 [ACIT vs. Shri Bharat G. Patel] - 2 – 2. This appeal was earlier decided by the Tribunal vide order dated 28.06.213 and the appeal of the Revenue was dismissed. Thereafter, the Department had filed a Miscellaneous Application against that order, which was decided vide M.A. No.110/Ahd/2014 in IT(SS)A No.275/Ahd/2012, dated 03.12.2024, whereby the order passed by the ITAT IT(SS)A No.275/Ahd/2012 was recalled. Accordingly, the matter was fixed for fresh hearing.

3.

In the course of hearing, it was noticed that the tax effect involved in this appeal was below the prescribed limit of Rs.60 Lacs. The issue contested in this appeal was addition of seized cash of Rs.27,13,006/- only and the tax effect involved as mentioned in the order of Ld. CIT(A) was Rs.19,20,809/- only. When this fact was brought to the notice of Ld. CIT.DR, he fairly conceded the present appeal needs to be withdrawn in accordance with the CBDT Circular No.09/2024 dated 17th September, 2024. He, however, requested that a liberty may be given to the Department to verify whether the case was covered in any of the exceptions and, if so, to approach the Tribunal at a later date.

4.

We have considered the request of the Ld. CIT.DR. As the tax effect involved in this case is below the limit of Rs.60 Lacs as prescribed in CBDT’s Circular No.09/2024 dated 17th September, 2024, the present appeal filed by the Revenue is not maintainable. The said Circular stipulated that the revised monetary limit for filing of appeals shall apply to pending appeals as well, which may be accordingly withdrawn.

IT(SS)A No. 275/Ahd/2012 [ACIT vs. Shri Bharat G. Patel] - 3 –

Accordingly, this appeal is liable to be withdrawn by the Revenue and to be treated as dismissed. At the same time, the Revenue is free to approach this Tribunal, in case it is found that the case is covered in any of the exceptions of the said Circular.

5.

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

This Order pronounced on 06/02/2025

Sd/- Sd/- (SUCHITRA KAMBLE) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 06/02/2025 S. K. SINHA True Copy आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. 2. ��यथ� / The Respondent. संबं�धत आयकर आयु�त / Concerned CIT 3. 4. आयकर आयु�त(अपील) / The CIT(A)- �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad

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