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Facts
The Revenue Department filed an appeal against an order related to a reopened case u/s 147 of the Income Tax Act for AY 2006-07. The tax effect involved was Rs.4,00,443/-, which was below the prescribed limit for filing an appeal before the Tribunal.
Held
The Tribunal observed that recent circulars have removed the exception for cases reopened on audit objection, even if the tax effect is low. Therefore, the appeal was considered not maintainable.
Key Issues
Whether an appeal filed by the Revenue is maintainable when the tax effect is below the prescribed limit and the case was reopened on audit objection, considering recent circulars.
Sections Cited
250, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Revenue Department against the order dated 31.05.2023, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2006-07.
It appears from para 8 of the assessment order that the case of the Assessee was reopened u/s 147 of the Act on the audit objection and the tax effect involved in the instant case is Rs.4,00,443/- only which is below than the prescribed limit of Rs.60,00,000/- for filing an appeal before the Tribunal as per latest circular No.9/2024. However, the Ld. D.R. has submitted that the cases on the basis of audit objection falls under exception and therefore the latest circular No.9/2024 is not applicable.
This Court has perused the latest circular No.09/2024 dated 17.09.2024 along with circular No.5/2024 dated 15.03.2024 and observe that now the cases where the tax effect is lower than the prescribed limit as per said circular and the cases were reopened on the basis of audit objection, have been removed from the exception for filing of appeal even in the cases where the tax effect is low.
Considering the aforesaid facts and circumstances, the appeal filed by the Revenue Department is dismissed as withdrawn being not maintainable, however, with liberty to the Revenue Department to seek recalling of this order, in case of finding any judgment of the superior court, contrary. Order pronounced in the open court on 10.01.2025.