DCIT., CENTRAL CIRCLE-1(3), HYDERABAD vs. C K ENTERTAINMENTS PRIVATE LIMITED, HYDERABAD

Facts

The Revenue filed appeals for Assessment Years 2020-21 and 2016-17 against orders of the Commissioner of Income Tax (Appeals). The tax effect in these appeals was less than Rs. 60 lakhs, which is the monetary limit set by CBDT Circular No. 279/2024-ITJ for appeals before the ITAT.

Held

The Tribunal held that the Revenue's appeals were not maintainable as the tax effect was below the prescribed monetary limit. It rejected the Revenue's contention that the appeals fell under exceptions provided in Para 3.2 and Para 6.2 of CBDT Circular No. 5/2024, noting a lack of evidence. The appeals were dismissed, but the issues were left open for future proceedings if exceptions were later found to apply.

Key Issues

Whether appeals filed by the Revenue, with a tax effect below the monetary limit prescribed by CBDT circulars, are maintainable, and if the specific exceptions to these circulars are applicable to the present case.