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Facts
The Revenue filed an appeal before the ITAT against the CIT(A)'s order. The tax effect in the appeal was Rs. 44,35,727/-, which is less than the monetary limit of Rs. 60 Lakhs prescribed by CBDT Circular No. 09 of 2024 for filing appeals.
Held
The Tribunal held that since the tax effect was less than Rs. 60 lakhs, the appeal was not maintainable as per the CBDT circular. However, the issues raised were left open for future examination if they arise and the Revenue could apply for recalling the order if it falls under exceptions mentioned in the circular.
Key Issues
Whether the appeal filed by the Revenue is maintainable before the ITAT, given the tax effect is below the monetary limit specified by the CBDT circular.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax, Appeal, Chennai-16 [hereinafter “CIT(A)”] dated 19.12.2024.
The Ld AR at the outset stated that the tax effect involved in the above appeal is Rs. 44,35,727/- which is less than Rs. 60 lakhs. The CBDT vide Circular No.09 of 2024 dated 17.09.2024 has increased the monetary limit for filing the appeal by the Revenue before the ITAT to Rs. 60 Lakhs. In the said circular, it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 60 lakhs appeals should not be filed.
The Ld. Departmental Representative (DR), however, submitted that the CBDT circular 5/2024 in para 3 itself has carved out exceptions and clarified that appeals may still be contested on merits notwithstanding the monetary limit.
We have considered the submissions of both sides and perused the material on record. The Ld DR has submitted that the case was covered by exception but could not substantiate with supporting documents as under which clause it is exempted from the monetary limit. Thus, taking note of CBDT Circular No. 09 of 2024 dated 17.09.2024 and considering the fact that the tax effect in the instant appeal is less than Rs. 60 lakhs, the present appeal deserves to be dismissed as withdrawn / not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so advised. Accordingly, in the light of CBDT circular No. 09 of 2024 dated 17.09.2024, this appeal stands dismissed.
In the result, the appeal filed by the Revenue is dismissed.
Order pronounced on 28th day of August, 2025 at Chennai.