DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(1), KOLKATA, KOLKATA vs. MANGALVANI EXPORTS PVT LTD, KOLKATA

The revenue has filed an appeal against the order dated 18.01.2024 by the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] and the assessee has filed the corresponding cross- objection relating to assessment year 2019-20.

At the outset, the ld. AR contended that the present appeal filed by the revenue relates to assessment year 2019-20, where the tax effect involved is below Rs.60 lacs, the prescribed monetary limit fixed by the CBDT vide Circular No. 09/2024 dated 17/09/2024 for filing appeals before the Tribunal. The ld. counsel argues that as per CBDT Circular No.17/2019 dated 08.08.2019, appeals with tax effect below Rs.50 lacs was subsequently enhanced to Rs.60 lacs by the latest circular issued by the CBDT. The present appeals should not be perused before Tribunal and may be dismissed on the ground of low tax effect.

On the other hand, the ld. DR acknowledged that the tax effect involved in the present appeals are below the prescribed limit. However, the ld. DR submitted that the appeal may have been filed erroneously.

We, after hearing both the parties and reviewing the material on record, find that the tax effect is involved in this appeal, which is below Rs.60 lacs, the prescribed monetary threshold under the CBDT for filing appeals before the Tribunal. There is no indication that the revenue’s appeal falls within any of the exceptions outlined in the CBDT’s circular. In the light of the above, the appeal filed by the revenue is not maintainable and liable to be dismissed as per the guidelines of the CBDT Circular of 2024, the consequential cross-objection i.e. C.O No.22/Kol/2024 filed by the assessee is rendered infructuous and is also dismissed. The present appeal of the revenue is dismissed due to low tax effect and the corresponding cross-objection filed by the assessee is also dismissed as infructuous.