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Facts
The Revenue filed an appeal against the Commissioner of Income Tax (Appeals) order dated 12.02.2024 for the assessment year 2017-18. The tax effect involved in this appeal was Rs. 9,75,379/-, which is below the monetary limit of Rs. 60 lacs prescribed by CBDT Circular No. 09/2024 dated 17.09.2024 for appeals to be filed by the Department before the ITAT.
Held
The Tribunal dismissed the Revenue's appeal as not maintainable due to the low tax effect, in accordance with the CBDT Circular. It clarified that this dismissal does not constitute an affirmation of the CIT(A)'s order on merits, and the legal issue raised by the Revenue remains open for adjudication in an appropriate case.
Key Issues
Whether the Revenue's appeal before the ITAT is maintainable when the tax effect is below the monetary threshold stipulated by a CBDT Circular.
Sections Cited
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Income Tax Appellate Tribunal, CHANDIGARH
Before: SH. SANJAY GARG
PHYSICAL HEARING आदेश/ORDER The present appeal has been filed by the Revenue against the order dated 12.02.2024 of the Commissioner of Income Tax (Appeals), NFAC Delhi [in short ‘the CIT (Appeals)] pertaining to assessment year 2017-18.
It is noted that the tax effect involved in the present appeal is Rs.9,75,379/-. Accordingly, in terms of the CBDT Circular No.09/2024 dated 17.09.2024, wherein the Department has specified the monetary limit for an appeal to be filed by the ITA 425/CHD/2025 A.Y. 2017-18 2 Revenue before the ITAT as Rs. 60 lacs, the appeal so filed by the Revenue is not maintainable.
In view of the above facts and circumstances, the present appeal filed by the Department is dismissed due to low tax effect with a liberty to seek recall in case the matter falls under any of the exceptions so carved out in the aforesaid circular.
It is, however, clarified that the dismissal of the above appeal shall not be taken to be affirmation of the order of the CIT(A) on merits. The legal issue raised by the Revenue is being left open to be adjudicated in an appropriate case.
In the result the appeal of the Revenue is dismissed.
Order pronounced on 06th November,2025.