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Facts
The Revenue filed an appeal against an order of the CIT(A) for Assessment Year 2018-19. The assessee's representative contended that the tax effect on the disputed additions was below Rs. 60 lakhs, which falls under the monetary limit set by CBDT Circular No. 9 of 2024.
Held
The Tribunal, considering CBDT Circular No. 9 of 2024 and Section 268A of the Income Tax Act, dismissed the Revenue's appeal due to the low tax effect (below Rs. 60 lakhs). The Department was granted liberty to seek a recall of the order if the tax effect is subsequently found to be higher or if the case falls within the circular's exceptions.
Key Issues
Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect on the disputed additions is below the monetary threshold stipulated by the CBDT Circular.
Sections Cited
268A
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Income Tax Appellate Tribunal, “ A ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha
"ी संजय गग", "ाियक सद" एवं "ी नरे !साद िस"ा, लेखा सद" के सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं / Year : 2018-19 ACIT M/s. Aava Infraservices LLP बनाम/ Central Circle-1(1) Shop No.2, Aasarsh Shopping v/s. Vadodara – 390 007 Centre Chhani Vadodara – 390 002 "थायी लेखा सं./PAN: ABDFA 3310 M (अपीलाथ'/ Appellant) (!( यथ'/ Respondent) Assessee by : Ms. Urvashi Shodhan, AR Revenue by : Shri Alpesh Parmar, CIT-DR सुनवाई की तारीख/Date of Hearing : 15/06/2025 घोषणा की तारीख /Date of Pronouncement: 16/09/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 07/04/2025 for Assessment Year (AY) 2018-19.
Before going to the merit of the case, the Authorized Representative (AR) for the assessee, at the outset, submitted that tax effect on the disputed total additions is below Rs.60 lakhs, therefore, by virtue of recent CBDT ACIT vs. M/s.Aava Infraservices LLP AY : 2018-19 Circular No. 9 of 2024 dated 17.9.2024, Department has been instructed not to file appeal before the Tribunal, where tax effect is below Rs.60 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. Per contra, the Departmental Representative (DR) did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.60 lakhs in the assessee case. He, however, left the issue to the Tribunal to pass appropriate order in the matter.
After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than Rs.60 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed. However, it is noted that in case on re-verification at the end of the AO, if it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. ACIT vs. M/s.Aava Infraservices LLP AY : 2018-19