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Facts
The Revenue filed an appeal against the order of the CIT(A) for AY 2018-19. The assessee's AR submitted that the tax effect of the disputed additions was below Rs. 60 lakhs, which falls under the CBDT Circular No. 9 of 2024, directing not to file appeals below this tax threshold.
Held
The Tribunal observed that the tax effect was indeed below Rs. 60 lakhs and that the Revenue did not dispute the applicability of the CBDT circular. Therefore, following the circular and Section 268A of the Income Tax Act, the appeal was dismissed.
Key Issues
Whether the Revenue's appeal should be dismissed on the grounds of low tax effect as per CBDT Circular No. 9 of 2024.
Sections Cited
268A
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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 29/03/2023 for Assessment Year (AY) 2018-19. 2. Before going to the merit of the case, the Authorized Representative (AR) for the assessee, at the outset, submitted that tax effect on the disputed Asst. Year : 2018-19
total additions is below Rs.60 lakhs, therefore, by virtue of recent CBDT Circular No. 9 of 2024 dated 17.9.2024, Department has been instructed not to file appeal before the Tribunal, where tax effect is below Rs.60 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. Per contra, the Departmental Representative (DR) did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.60 lakhs in the assessee case. He, however, left the issue to the Tribunal to pass appropriate order in the matter.
After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than Rs.60 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed. However, it is noted that in case on re-verification at the end of the AO, if it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. Asst. Year : 2018-19
In the result, appeal of the Revenue is dismissed due to low tax effect.
Order pronounced in the Open Court on 09 /04/2026. ( Narendra Prasad Sinha ) Judicial Member
अहमदाबाद/Ahmedabad, िदनांक/Dated 09/04/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : अपीलाथ% / The Appellant 1. 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' अपील ( ) / The CIT(A)- 5. िवभागीय #ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद/DR,ITAT, Ahmedabad. , , 6. गाड" फाईल / Guard file.
आदेशानुसार/ BY ORDER, स&ािपत #ित //// सहायक पंजीकार (Asstt.