What did the Tribunal hold?

The Tribunal noted that the tax effect was indeed below the threshold limit specified in the CBDT circular and the Revenue's counsel could not rebut this fact or provide any exceptions. Therefore, the appeal was deemed not maintainable.

The Revenue preferred an appeal against the order of the CIT(Appeals). The assessee contended that the tax effect of the relief granted by the CIT(Appeals) was less than Rs. 60 lakhs, making the appeal not maintainable as per CBDT Circular No. 9/2024.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal given the low tax effect, as per CBDT Circular No. 9/2024.

DCIT vs Samarth Fablon Private Limited… | ITAT Kolkata 2025

Income Tax Appellate Tribunal, ‘D’ BENCH, KOLKATA

Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Rajesh Kumar

Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals), Kolkata-20 dated 20th August, 2024 passed for assessment year 2017-18.

(A.Y. 2017-2018) Samarth Fablon Pvt. Limited 2. The ld. Counsel for the assessee, at the very outset, submitted that tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs.60 lakhs and, therefore, in view of the CBDT Circular No. 9/2024 dated 17th September, 2024, the present appeal is not maintainable.

On the other hand, ld. D.R. could not rebut or controvert this fact.

With the assistance of ld. Representatives, we have gone through the record carefully. It is pertinent to note that the tax effect by virtue of relief given by the first appellate authority is less than ₹60,00,000/- as mentioned in Col. No. 10 of Form No. 36. which is stated to be ₹20,45,539/- and which is below ₹60,00,000/-. As per the CBDT’s Circular No. 9 of 2024 issued on 17th September, 2024, the CBDT has directed its subordinate authorities not to file appeal against the order of the Ld. CIT(Appeals) before the Tribunal if the tax effect by virtue of relief given by the ld. CIT(Appeals) is less than ₹60,00,000/-. Such order could only be challenged if it comes within the exceptions provided in the Instruction. Ld. Sr. DR could not rebut this fact nor could he demonstrate how the appeal was covered under any of the exceptions; therefore, this appeal is not maintainable.

On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on (A.Y. 2017-2018) Samarth Fablon Pvt. Limited account of low tax effect. However, in case on re- verification of the facts at the end of the Ld. Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls under any of the exceptions provided in the instruction, then the Revenue will be at liberty to file a Miscellaneous Application for recall of this order and revival of the appeal. Such an application should be filed within the time limit provided in the Act.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 31/10/2025.

DCIT, CENTRAL CIRCLE-1(4), KOLKATA, KOLKATA vs. SAMARTH FABLON PRIVATE LIMITED, KOLKATA

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