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Facts
The Revenue appealed against an order of the CIT(A) which had set aside an assessment order passed under Section 143(3) read with Section 263 of the Income Tax Act. The assessee argued for dismissal due to low tax effect as per CBDT Circular No. 09/2024.
Held
The Tribunal noted that the tax effect of the addition challenged was below Rs. 60 lakhs, which is the revised monetary limit for appeals by the Revenue as per CBDT Circular No. 09 of 2024. Consequently, the appeal was dismissed.
Key Issues
Whether the appeal by the Revenue is maintainable before the Tribunal in light of the CBDT Circular No. 09/2024 concerning the monetary limit for filing appeals?
Sections Cited
143(3), 263, 250, 37(1)
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Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of Revenue pertaining to A.Y. 2013-14 is directed against the order dated 08.07.2024 of National Faceless Appeal Centre (NFAC), Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 28.12.2018 passed u/s.143(3) r.w.s263 of the Act.
Revenue has raised the following grounds of appeal:
“1) The CIT(A) erred in quashing and setting aside the order u/s 143(3) r.w.s. 263 of the Act for the reason that the order u/s.263 of the Act is quashed by the Hon'ble ITAT ignoring the fact that the Hon'ble ITAT's order has been contested before the Hon'ble High Court and the same is at preadmission stage. 2) The CIT(A) erred in deciding the appellate proceedings in respect of order u/s 143(3) r.w.s 263 of the Act without waiting for the Ashdan Developers Private Limited conclusion of the judicial process in respect of the order u/s.263 of the Act from which the order under appeal emanated 3) The appellant craves to add, amend, alter or delete any of the above grounds of appeal during the course of appellate proceedings before the Hon'ble Tribunal."
3. At the outset, Ld. Counsel for the respondent-assessee submitted that appeal of the Revenue deserves to be dismissed on account of low tax effect by virtue of CBDT Circular No.09/2024 dated 17.09.2024 as the addition challenged by the Revenue only amounts to Rs.75,65,359/-. On the other hand, ld. Departmental Representative could not rebut this contention made by ld. Counsel for the assessee.
We have heard the rival contentions and perused the record placed before us. We observe that the assessee is a Private Limited Company assessed to tax for A.Y.2013-14. Thereafter, the assessment records were called for by ld. PCIT and order u/s.263 of the Act framed holding that the assessment order is erroneous and prejudicial to the interest of Revenue and directed the AO to frame the denovo assessment as per the direction given in the order u/s.263 of the Act dated 27.03.2018. On the other hand assessee assailed the order of ld.PCIT u/s.263 of the Act before this Tribunal and succeeded. This Tribunal vide order dated 16.12.2021 quashed the order passed by ld.PCIT u/s.263 of the Act. But in the meantime, assessment order u/s.143(3) r.w.s.263 of the Act already stood framed on 28.12.2018.
Before us, Revenue has raised following additional grounds of appeal :
i. On the facts and the circumstances of the case and in law, the Ld.CIT(A) erred in not appreciating the fact that the ground against the addition made on account of salary paid to the employees u/s Ashdan Developers Private Limited 37(1) of the Act, was not pressed by the assessee before the Hon'ble ITAT. ii. On the facts and the circumstances of the case and in law, the Ld.CIT(A) erred in holding that the Hon'ble ITAT order dated 16/12/2021 is applicable on the issue of addition made on account salary paid to the employees u/s 37(1) of the Act? ii. The appellant craves to add, amend, alter or delete the above ground of appeal during the course of appellate proceedings before the Hon'ble Tribunal."
6. From perusal of the above grounds and the facts in entirety, the only issue agitated by the Department is against the deletion of disallowance u/s.37(1) of the Act at Rs.75,65,359/-. The tax effect on the addition challenged before this Tribunal is below Rs.60.00 lakh. Eventhough ld.CIT(A) has deleted the addition made by the Assessing Officer on the wrong premise but the fact remains that ld.CIT(A) has deleted the addition.
7. The CBDT vide Circular No.09 of 2024 dated 17.09.2024 has increased the monetary limit for filing the appeal by the Revenue before the ITAT to Rs. 60 Lakhs. In the said circular, it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 60.00 lakh appeals should not be filed. Thus, taking note of CBDT Circular No. 09 of 2024 dated 17.09.2024 and considering the fact that the tax effect in the instant appeal is less than Rs. 60.00 lakh, the present appeal deserves to be dismissed as withdrawn / not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for
In the result, the appeal of the Revenue is dismissed.
Order pronounced on this 14th day of August, 2025.