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Facts
The Revenue challenged a CIT(A) order for AY 2012-13 where relief was granted, resulting in a tax effect of Rs. 58,40,000/-. This amount is below the Rs. 60,00,000/- monetary limit set by CBDT Instruction No. 9 of 2024 for filing appeals before the Tribunal.
Held
The Tribunal dismissed the Revenue's appeal due to the low tax effect, citing the CBDT instruction. However, the Revenue was granted liberty to file a Miscellaneous Application for recall and revival if a subsequent re-verification reveals the tax effect exceeds the limit or the case falls under an exception to the instruction.
Key Issues
Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the prescribed monetary limit as per CBDT instructions, without falling under any specified exceptions.
Sections Cited
250, 143(3), 254
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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
PER BENCH: This appeal filed by the Revenue is against the order of the Commissioner of Income Tax (Appeals) [hereinafter referred to as Ld. 'CIT(A)']-NFAC, Delhi passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2012-13 dated 11.07.2023, which has been passed against the order u/s 143(3)/254 of the Act, dated 27.09.2021. 2. It is pertinent to note that the tax effect by virtue of relief given by the first appellate authority is less than Rs. 60,00,000/- as mentioned I.T.A. No.: 1023/KOL/2023 Assessment Year: 2012-13 Abha Fuels Private Limited. in Col. No. 10 of Form No.
The Ld. AR objected to the admission of the appeal as the tax effect is stated to be Rs. 58,40,000/- which is below Rs. 60,00,000/-. As per the CBDT’s Instruction 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(A) before the Tribunal if the tax effect by virtue of relief given by the Ld. CIT(A) is less than Rs. 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 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 of the Revenue is dismissed. Order pronounced in the open Court on 4th March, 2025. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 04.03.2025 Bidhan (P.S.) I.T.A. No.: 1023/KOL/2023 Assessment Year: 2012-13 Abha Fuels Private Limited. Copy of the order forwarded to:
Income Tax Officer Ward-4(3), Kolkata.
Abha Fuels Private Limited, Room No 167, 33/1 N.S Road, Kolkata, West Bengal, 700001. 3. CIT(A)-NFAC, Delhi.
CIT-
CIT(DR), Kolkata Benches, Kolkata.
Guard File. //// By order