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Facts
The Department filed an appeal against a CIT(A) order deleting Rs. 1,49,19,923/- for Assessment Year 2016-17. The tax effect for the Department's appeal was Rs. 54,81,726/-, which is below the revised monetary limit of Rs. 60 lakhs for filing appeals as per CBDT Circular No. 9/2024. The assessee also filed a Cross Objection supporting the CIT(A)'s findings.
Held
The Tribunal dismissed the Department's appeal due to the low tax effect, in accordance with CBDT Circular No. 9/2024 (or 09/2024), but granted liberty to the Department to revive the appeal if the tax effect subsequently increases. The assessee's Cross Objection was also dismissed as not pressed, as it was contingent on the Department's appeal being dismissed on monetary grounds.
Key Issues
Whether the Department's appeal should be dismissed on account of low tax effect as per CBDT Circular, and consequently, whether the assessee's Cross Objection should also be dismissed as not pressed.
Sections Cited
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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: SHRI SIDDHARTHA NAUTIYAL & SHRI MAKARAND V. MAHADEOKAR
(Assessment Year: 2016-17) Deputy Commissioner of Vs. Vinodbhai Pithiya, Income Tax 404, Shantam Apartment Vadodara Pasabhai Park, Gotri Road, Vadodara-390007 [PAN No.AIAPP8126E] (Appellant) .. (Respondent) C.O. No.13/Ahd/2024 (Assessment Year: 2016-17) Vinodbhai Pithiya, Vs. Deputy Commissioner of 404, Shantam Apartment Income Tax Pasabhai Park, Gotri Road, Vadodara Vadodara-390007 [PAN No.AIAPP8126E] (Appellant) .. (Respondent) Appellant by : Ms. Kinjal Shah, C.A. Respondent by: Smt. Trupti Patel, Sr. DR Date of Hearing 08.05.2025 09.05.2025 Date of Pronouncement O R D E R
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
This appeal has been filed by the Department against the order passed by Ld. CIT(A), challenging the deletion of Rs. 1,49,19,923/-, in the order passed by Ld. CIT(A) and the Cross Objection filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)-11, (in short “Ld. CIT(A)”), Ahmedabad vide order dated 15.03.2024 passed for A.Y. 2016-17.
Before us, the Counsel for the assessee submitted that on perusal of Form No. 36, the tax effect indicated by the Income Tax Department is C.O. No. 13/Ahd/2024 DCIT vs. Vinodbhai Pithiya and Vinodbhai Pithiya vs. DCIT Asst. Year –2016-17 - 2– 54,81,726/-. The Counsel for the assessee invited our attention to CBDT Circular No. 9/2024 dated 15.03.2024, in which the monetary limit of tax effect with respect to appeals filed by the Department was raised to Rs. 60 lakhs and the said Circular is applicable to appeals pending adjudication before the ITAT. Accordingly, in view of the revised monetary limit, it was submitted that the appeal filed by the Department has become infructuous and accordingly, the same is liable to be dismissed, on account of low tax effect.
The Ld. CIT-DR appearing for the Revenue did not dispute the above facts. However, he sought liberty be given to the Department to revive the above appeals in the event if the Tax Effect in the above appeals are higher than the prescribed monetary limit.
Considering the above submissions of both the parties, the above appeals filed by the Revenue are hereby dismissed, following the CBDT Circular No. 09/2024 dated 17.09.2024 with liberty to the Department to revive the appeals, in the event, if there is change in the disputed tax in the above appeals.
In the result, the appeal filed by the Revenue are hereby dismissed.
We further note that the assessee has filed Cross Objection No. 13/Ahd/2024, in which the assessee has only supported the findings given by Ld. CIT(A), in the appellate order.
Before us, the Counsel for the assessee submitted that in case the appeal of the Department is dismissed on account of low tax effect, then the assessee shall not pressing its contention raised in the Cross Objections.
Since we have dismissed the appeal of the Revenue on account of low tax effect (though liberty has been given to the Department to revive the above appeal in case the tax effect in the above appeal is found to be higher), the Cross Objection filed by the assessee is being dismissed as not pressed.
In the result, both the appeals filed by the Department as well as the Cross Objections filed by the assessee, are dismissed. This Order pronounced in Open Court on 09/05/2025
Sd/- Sd/- (MAKARAND V. MAHADEOKAR) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 09/05/2025 TANMAY, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,