DCIT CORPORATE CIRCLE 3(1), CHENNAI vs. M/S VESTAS TECHNOLOGY R & D CHENNAI P. LTD, CHENNAI KANCHEEPURAM

This appeal filed by the Revenue is directed against the order dated 12.03.2025 passed by the ld. Commissioner of Income Tax (Appeals) – 16, Chennai for the assessment year 2016-17.

When the appeal was taken up for hearing, the ld. AR Ms. C. Sowndarya, C.A. submits that the tax effect in the appeal filed by the Revenue is less than the monetary limit of ₹.60,00,000/- fixed by the CBDT to file an appeal by the Revenue before the Tribunal as per the CBDT Circular No. 09/2024, dated 17.09.2024.

The ld. DR Shri N. Rajakumar, Addl. CIT submits that even though the tax effect in this case is below the monetary limit, further appeal in this case has been preferred as this case fall in the exceptions to the monetary limits specified in para 3.1(a) by relying upon the CBDT.

In reply, the ld. AR argued that no provision of the Act or the Rules or notification issued there under has been held to be constitutionally valid in this case and thus, the present case does not fall in the exceptions specified in para 3.1(a) of the above said circular.

Having heard both the parties and perused the material available on record, we note that the tax effect in this case is below the monetary limit and we are of the opinion that there is no constitutional validity involved on the issues on hand with regard to the tax effect and the monetary limits. Thus, the Revenue authorities are precluded from filing the appeal before the Tribunal, since the tax effect is less than ₹.60,00,000/- in this appeal. Thus, the appeal filed by the Appellant- Revenue is liable to be dismissed as not maintainable. Accordingly, the appeal filed by the Revenue is dismissed.