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Facts
The Revenue filed an appeal against the order of the Commissioner of Income Tax (Appeals) for assessment year 2010-11. An earlier appeal order, dismissed on low tax effect, was restored due to a RAP audit objection.
Held
The Tribunal noted that the tax effect in the appeal was below the monetary limit set by the CBDT for filing appeals. Therefore, the Revenue's appeal was dismissed as not maintainable.
Key Issues
Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the prescribed monetary limit.
Sections Cited
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Before: Shri S.S. Viswanethra Ravi&
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the Revenue is directed against the order dated 24.07.2019 passed by the ld. Commissioner of Income Tax (Appeals)-1, Trichy, for the assessment year 2010-11. 2. At the outset, we note that vide order dated 05.01.2024 in MP No. 60/Chny/2023, the appeal order dated 14.12.2022, which was dismissed on low tax effect, has been restored on the ground that there is RAP audit objection.
The ld. AR Shri N. Quadir Hoseyn, Advocate submits that the exceptional clause 10(c) provided in earlier circular issued by the CBDT for adjudicating matters fall under RAP objection, has been revoked and there is no exceptional clause 10(c) provided in the latest circular of the CBDT and prayed that the appeal of the Respondent- Revenue is not maintainable being low tax effect and liable to be dismissed. He placed reliance on the decision of the Hon’ble High Court of Madras in the case of CIT v. South India Shelters in T.C.A. No. 923 & 924 of 2013 dated 05.11.2024.
The ld. DR Ms. E. Pavuna Sundari, Addl. CIT fairly conceded the above submissions of the ld. AR.
Having heard both the sides, we note 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 and being so, 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 Revenue is liable to be dismissed as not maintainable. However, the Respondent- Revenue is at liberty to recall if any prejudice caused by appropriate manner. Accordingly, the appeal filed by the Revenue is dismissed.