ITO, WARD -6(1), KOLKATA vs. DARPAN SUPPLIERS PVT. LTD., KOLKATA
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the appeal filed by the Department is contrary to its own policy decision as per CBDT Circular No. 9/2024. Consequently, the appeal was dismissed in limine. The Tribunal also granted liberty to the revenue to seek recall of the order if the tax effect is later found to be more than Rs. 60 lakhs or if the appeal is otherwise maintainable.
What were the facts?
The revenue filed an appeal against the Commissioner of Income Tax (Appeal) order for Assessment Year 2012-13. The tax effect involved in this appeal is less than Rs. 60,00,000/-, which is the monetary limit set by CBDT Circular No. 9/2024 for filing appeals by the Department before the Income Tax Appellate Tribunal.
What were the issues?
Whether an appeal filed by the revenue is maintainable before the Income Tax Appellate Tribunal when the tax effect is below the monetary limit prescribed by CBDT Circular No. 9/2024.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH: KOLKATA
Before: Shri Rajesh Kumar& Shri Pradip Kumar Choubey]
Date of Hearing / सुनवाई 08.05.2025 क� �त�थ Date of Pronouncement/ 15.05.2025 आदेश उ�घोषणा क� �त�थ For the assessee / None �नधा�रती क� ओर से For the revenue / राज�व Shri Ashutosh Kumar, Sr. D.R क� ओर से ORDER / आदेश Per Pradip Kumar Choubey, JM:
This is the appeal preferred by the revenue against the order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 18.10.2023 for AY 2012-13.
At the outset, we note that the CBDT has issued a Circular No. 9/2024 dated 17.09.2024, whereby the monetary limits for filing of appeal by the Department before Assessment Year: 2012-13 Darpan Suppliers pvt. Ltd. Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:
Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/-
In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. We note that this appeal had been filed by the revenue on 15-12-2023 and since the tax effect is within the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine.
As a matter of caution, we observe that if the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect, the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order. In the result, the appeal of the revenue is dismissed. Order is pronounced in the open court on 15th May, 2025
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