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Facts
The appeals were filed by the revenue, and there was a delay of 109 days in filing. The assessee's AR pointed out that the tax effect in both cases was less than Rs.60,00,000/-, and the CBDT had issued a circular enhancing the monetary limits for filing appeals.
Held
The Tribunal condoned the delay in filing the appeals. However, it held that since the tax effect was within the revised monetary limits specified by the CBDT, the appeals should not have been preferred by the revenue in the first place. Consequently, the appeals were dismissed in limine.
Key Issues
Whether the revenue's appeals, filed after a significant delay and with a tax effect below the revised monetary limits set by the CBDT, are maintainable.
Sections Cited
250
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Income Tax Appellate Tribunal, “C” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Sonjoy Sarma
order
: January 22, 2025 ORDER
Per Sonjoy Sarma, Judicial Member:
1. The captioned appeals have been preferred by the revenue against the separate orders both dated 27.02.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
At the outset, we notice that there is a delay of 109 days in filing both the instant appeals. The revenue has submitted applications for condonation of delay citing reasonable grounds. After considering the averments made in the applications, we condone the said delay in both the appeals.
The Ld. AR of the assessee submitted that in both the cases, the tax effect by the revenue is less than Rs.60,00,000/-. He further stated that the CBDT has issued a Circular No. 9/2024 dated 17.09.2024, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation.
II.T.A. Nos.1734&1735/Kol/2024 Assessment Years: 2013-14 & 2014-15 Pitrashish Marketing Enterprises Pvt. Ltd 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/- 4. We note that both the appeals had been filed by the revenue on 14.08.2024 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 these appeals. In view of the above, we hold that both the appeals filed by the Department, against the impugned order of the Ld. CIT(A), are contrary to the policy decision of the Department and as such, the instant appeals filed by the Department are 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 these appeals is more than Rs.60 lakhs or despite low tax effect, the appeals of the revenue are maintainable, the revenue is at liberty to move this Tribunal for recalling of this consolidated order.
In the result, both the appeals of the revenue are dismissed. Kolkata, the 22nd January, 2025.