DCIT, CIRCLE 1(1)(1), AHMEDABAD, AHMEDABAD vs. AKASH AGRO INDUSTRIES LTD, AHMEDABAD

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ITA 2184/AHD/2026Status: DisposedITAT Ahmedabad28 October 2026AY 2019-203 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 Revenue's appeal was not maintainable on the ground of low tax effect. It was noted that the tax effect involved was Rs. 27,30,000/-, which is below the monetary limit of Rs. 60 Lakhs prescribed by CBDT Circular No. 9/2024 dated 17.09.2024. The Revenue's representative could not provide any justification for filing the appeal under the exceptional clauses of the circular. Consequently, the Revenue's appeal was dismissed. As a result of the dismissal of the Revenue's appeal, the cross-objection filed by the assessee was also dismissed as infructuous. The Tribunal did not decide on the merits of the additions or the procedural issues raised by the assessee.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT) against an order passed by the Commissioner of Income Tax (Appeals) for Assessment Year 2019-20. The assessee, Akash Agro Industries Ltd., filed a cross-objection. The appeal and cross-objection were heard together. The assessee's grounds in the cross-objection included challenges to additions made in the assessment order, alleged violations of Section 151A of the Income Tax Act, 1961, and the invalidity of assessment proceedings under the e-Assessment Scheme. A significant ground raised by the assessee was that the Revenue's appeal should not have been filed as the tax effect was below the monetary limit prescribed by CBDT circulars.

What were the issues?

1. Whether the Revenue's appeal is maintainable in law, considering the tax effect is below the monetary limit prescribed by CBDT Circular No. 9/2024 dated 17.09.2024? 2. Whether the assessment order was erroneous on facts and in law, and if the Ld. Assessing Officer erred in making the assessment order in violation of Section 151A of the Income Tax Act, 1961, rendering the proceedings invalid? Assessee's contentions: - The tax effect in the Revenue's appeal is Rs. 27,30,000/-, which is below the monetary limit of Rs. 60 Lakhs stipulated by CBDT Circular No. 9/2024. Therefore, the appeal is not maintainable. - The assessment order was erroneous and passed in violation of Section 151A of the Act, making the entire proceedings void ab initio. Revenue's contentions: - The Revenue's representative could not point out any exceptional clauses from the said CBDT Circular that would justify filing the appeal despite the low tax effect.

Which sections of the Income-tax Act were involved?

Section 151A,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI TAPAS RAM MISRA

For Appellant: Shri M. Chandramouleswara Rao, CA
For Respondent: Shri Kiran Unavekar, CIT(DR) &, Shri Amit Pratap Singh, Sr DR
Hearing: 28.10.2026Pronounced: 28.10.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

The captioned appeal by the Revenue and the corresponding Cross Objection by the assessee have been filed against the dated 06.03.2026 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “Ld. CIT(A)”] under section 250 of the Income- tax Act, 1961 [“the Act”] for the Assessment Year (AY) 2019-20.

2.

The assessee has filed following grounds in its cross-objection:-

“1. On the facts and in the 1. On the facts and in the circumstance of the case and in law, the additions made Rs. 35,00,000/- in the assessment order is erroneous on both facts and in law. 2. On the facts and in the circumstance of the case and in law, the respondent submits that, the Ld. Assessing officer erred in making the assessment order in violation of the provisions of section 151A of the Income Tax Act, 1961 (the

ITA No. 2184/Ahd/2026 and CO N. 54/Ahd/2026 Akash Agro Industries Ltd AYs : 2019-2020 - 2– 'Act') and Ld. CIT(A) as well erred in not declaring such assessment order as invalid and void - ab initio as the entire proceedings of assessment including notices issued there under are in violation of the mandatory procedure prescribed u/s 151A of the Act and e-Assessment of Income Escaping Assessment Scheme, 2022 vide notification No S.O.1466(E) dated 29.03.2022.

3.

On the facts and in the circumstance of the case and in law, the Ld. Assessing Officer has erred in filing the present appeal against the order of the CIT(A) where the tax effect of the issues disputed has not exceeded the monetary limit of 60 lakhs prescribed by the CBDT vide circular No 5/2024 dated 15.03.2024 which is revised to the minimum tax effect of Rs 60 Lakhs by the CBDT circular no 9/2024 dated 17.09.2024. The Ld. Ao Ought to have desisted from filing the appeal since the tax effect is Rs 27,30,000/- which is less than Rs 60 lakhs and the appeal is violating the binding CBDT Circulars.”

4.

At the time of hearing, the Ld. AR contended that the tax effect involved in the Revenue’s appeal is below the monetary limit of Rs 60 Lakhs prescribed by the CBDT vide circular No. 9/2024 dated 17.09.2024. On perusal of Form No. 36 filed by the Revenue, it is noticed that the tax effect involved is Rs.27,30,000/-, which is below the prescribed monetary limit. The Ld. DR could not point out anything falling under the exceptional clauses of the said Circular. Accordingly, the appeal filed by the Revenue is dismissed on account of low tax effect. The cross-objection filed by the assessee is consequently dismissed as infructuous.

5.

In the result, the appeal of the Revenue and the Cross-objection filed by the assessee, both are dismissed.

Order pronounced in the open Court on 28.10.2026

Sd/- Sd/-

(TAPAS RAM MISRA) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 28.10.2026 **btk

ITA No. 2184/Ahd/2026 and CO N. 54/Ahd/2026 Akash Agro Industries Ltd AYs : 2019-2020 - 3– JEETENDR Digitally signed by आदेश की �ितिलिप अ�ेिषत / Copy of the Order forwarded to : JEETENDRA DEVENDRABHAI UPADHYAY A DN: c=IN, o=PERSONAL, अपीलाथ�/ The Appellant 1. title=6087, 2.5.4.20=7e5568a89b633f17 ��थ�/ The Respondent. DEVENDR 2. 4b28a80f5e63c638da40b731 3fb47ebaefda841cf59d1703, संबंिधतआयकरआयु�/ Concerned CIT 3. postalCode=380059, ABHAI st=Gujarat, 4. आयकरआयु�(अपील) /The CIT(A)- serialNumber=816dc56e896 211a1a21ccc4abc94ddc9445 UPADHYA 8f4a1b37be8e1854e9399295 5. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 106d4, cn=JEETENDRA DEVENDRABHAI UPADHYAY Y Date: 2026.10.30 10:09:19 6. गाड�फाईल /Guard file. +05'30'

आदेशानुसार/ BY ORDER,

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