ACIT 8(3)(1), MUMBAI, MUMBAI vs. PRANAV NATVERLAL PARIKH, MUMBAI

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ITA 336/MUM/2025Status: DisposedITAT Mumbai18 March 2025Bench: SMT. BEENA PILLAI (Judicial Member), SHRI GIRISH AGRAWAL ( (Accountant Member)5 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 noted that the assessee had submitted a letter stating that the tax effect in the appeal was below Rs. 60 Lakhs, as per CBDT Circular No. 09/2024. The assessee calculated the tax effect to be Rs. 53,02,734/-. The Revenue was given an opportunity to verify this submission. The Departmental Representative (DR) admitted before the Tribunal that the tax effect was indeed below Rs. 60,00,000/-. Considering these admissions, the Tribunal allowed the appeal to be withdrawn by the Revenue, with liberty to review the order if circumstances warranted. The grounds raised by the Revenue were accordingly dismissed as infructuous. The ratio decidendi is that an appeal filed by the Revenue, where the tax effect falls below the prescribed monetary limit by the CBDT, is not maintainable and can be dismissed or withdrawn.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging an order dated 22/11/2024 passed by the National Faceless Appeal Centre (NFAC), Delhi. The NFAC had deleted an addition of Rs. 2,57,41,424/- made by the Assessing Officer, which was claimed as exemption under Section 54 of the Income Tax Act. The amount in dispute was Rs. 2,57,41,424/-. The assessee, Pranav Natverlal Parikh, filed a letter stating that the tax effect in the appeal was below Rs. 60 Lakhs, citing CBDT Circular No. 09/2024. The assessee calculated the total tax effect as Rs. 53,02,734/-.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the ITAT, considering the revised monetary limits for filing appeals as per CBDT Circular No. 09/2024, which stipulates a tax effect of Rs. 60,00,000/-. This is a question of law and procedure. Assessee's Contentions: The assessee argued that the tax effect in the present appeal is Rs. 53,02,734/-, which is below the revised threshold of Rs. 60,00,000/- prescribed by CBDT Circular No. 09/2024. Therefore, the appeal filed by the Revenue is not maintainable and should be dismissed on this ground alone. The assessee relied on CBDT Circular No. 09/2024. Revenue's Contentions: The Revenue was provided an opportunity to verify the assessee's submission. The Departmental Representative (DR) admitted before the Tribunal that the tax effect is below Rs. 60,00,000/-.

Which sections of the Income-tax Act were involved?

Section 54

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SHRI GIRISH AGRAWAL

For Appellant: Shri Hitesh Jain
For Respondent: Shri Mahesh Pamnani, SR. D.R
Hearing: 06.03.2025Pronounced: 18.03.2025

Per: Smt. Beena Pillai, J.M.: The present appeal filed by the Revenue arises out of order dated 22/11/2024 passed by NFAC Delhi.

A.Y. 2013-14 Pranav Natverlal Parikh 2. At the outset, the ld.AR submitted that, assessee has filed letter dated 27/02/2025 submitting that the tax effect in the present appeal is below 60 Lakhs. Scanned and reproduced herewith is the withdrawal letter filed by the assessee:

3.

Revenue was provided opportunity to verify the above submission by the Ld.AR. Before this Tribunal, the Ld.DR admitted that the tax effect is below 60,00,000/-.

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