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Facts
The Revenue filed an appeal against the Commissioner of Income Tax (Appeals) order for the assessment year 2024-25. It was observed that the total tax effect involved was Rs.26,000/-, which is below the Rs.60,00,000/- limit prescribed by the Central Board of Direct Taxes for filing appeals before the Income Tax Appellate Tribunal. Both parties agreed on this fact.
Held
The Tribunal dismissed the appeal in limine, without admitting it or going into its merits, as it was not maintainable due to the low tax effect. The Tribunal clarified that the Revenue retains the liberty to seek restoration of the appeal if it can demonstrate that the appeal is otherwise maintainable despite the tax effect being below Rs.60 lakhs.
Key Issues
Whether an appeal filed by the Revenue is maintainable before the ITAT if the total tax effect is below the monetary limit prescribed by the Central Board of Direct Taxes.
Sections Cited
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Income Tax Appellate Tribunal, LUCKNOW BENCH ‘SMC’, LUCKNOW
Before: SHRI ANADEE NATH MISSHRA
Revenue for assessment year 2024-25 against impugned appellate order dated 30/06/2025 (DIN & Order No.ITBA/APL/S/250/2025-26/1078041702(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
(B) At the time of hearing before us, it was observed, on perusal of Form- 36 in which the appeal has been filed, that the total tax effect is stated to be Rs.26,000/- only which is below the prescribed limit of Rs.60,00,000/-, as instructed by Central Board of Direct Taxes, for filing an appeal in Income Tax Appellate Tribunal against order of the learned CIT(A). Representatives of both sides, the learned Sr. D.R. for Revenue and the learned A.R. for the assessee were in agreement that the tax effect being below the minimum prescribed limit of Rs.60,00,000/-, this appeal is not maintainable and should be dismissed.
(C) In view of foregoing and as representatives of both sides are in agreement on this, this appeal is dismissed in limine without admitting the appeal and without going into the merits of the case.
(D) By way of abundant caution, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal for restoration of appeal; if deemed fit, if it is found that the appeal is otherwise maintainable despite the tax effect being below Rs.60 lakhs.
(E) In the result, the appeal filed by the Revenue is dismissed as not maintainable.
(Order pronounced in the open court on 04/12/2025)
Sd/.