ASSISTNAT COMMISSIONER OF INCOME TAX, TDS CIRCLE, KOZHIKODE vs. ENGLISH HOUSE, KOZHIKODE
Facts
The Assistant Commissioner of Income Tax (ACIT), TDS Circle, filed an appeal against an order of the Addl/Jt. Commissioner of Income Tax (Appeals)-2 for Assessment Year 2020-21. The tax effect involved in this appeal was less than Rs. 60 lakhs.
Held
The Income Tax Appellate Tribunal (ITAT) dismissed the appeal, citing CBDT Circular No. 9/2024 dated 17.09.2024, which mandates that the Revenue should not file appeals before the ITAT if the tax effect is below Rs. 60 lakhs. The Tribunal clarified that the issues raised are left open for appropriate future proceedings, and the Revenue may apply for recall if the appeal falls under any exceptions to the circular.
Key Issues
Whether a Revenue appeal with a tax effect below Rs. 60 lakhs should be dismissed as per CBDT Circular No. 9/2024, which sets monetary limits for filing appeals.
Sections Cited
268A(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SANDEEP SINGH KARHAIL, JM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI SANDEEP SINGH KARHAIL, JM ITA No. 722/Coch/2024 Assessment Year: 2021-22 ACIT, TDS Circle .......... Appellant 3rd Floor, Aayakar Bhavan, North Block Mananchira, Kozhikode 673001 vs. English House .......... Respondent 2nd Floor, Hilite Business Park Poovangal, Kozhikode 673014 [PAN: CHNMO7363G] Appellant by: Smt. Leena Lal, Sr. D.R. Respondent by: ------- None ------- Date of Hearing: 25.03.2025 Date of Pronouncement: 27.03.2025
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Addl/Jt. Commissioner of Income Tax (Appeals)-2, Delhi [CIT(A)], dated 01.07.2024 for Assessment Year (AY) 2020-21.
During the course of hearing it is stated before us that the tax effect in the present appeal is less than Rs.60 lakhs and therefore, the Circular No. 9/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes (CBDT) in exercise of its power vested under
2 ITA No. 722/Coch/2024 ACIT, TDS Circle Sec.268A(1) of the IT Act comes into play wherein, the monetary limit for filing the appeal by the Revenue before the ITAT and various High Courts as well as Apex Court are revised with an object of reducing the tax litigation. Vide para 2 of the said circular (supra) it is stated that in cases where the tax effect in the appeals to be filed before the Appellate Tribunal does not exceed Rs.60 lakhs appeals should not be filed. Thus, taking a note of CBDT Circular No. 9/2024 dated 17.09.2024 and considering the fact that the tax effect in the instant appeal is less than Rs.60 lakhs, the present appeal deserves to be dismissed as not pressed / not maintainable. However, we make it clear that the issues raised in the instant appeal are 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 falls in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order if so advised. Accordingly, in the light of CBDT Circular No. 9/2024 dated 17.09.2024, the appeal dismissed.
In the result, the appeal filed by the Revenue stands dismissed. Order pronounced in the open court on 27th March, 2025.
Sd/- Sd/- (SANDEEP SINGH KARHAIL) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER
Cochin, Dated: 27th March, 2025 n.p.
3 ITA No. 722/Coch/2024 ACIT, TDS Circle Copy to:
The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File
Assistant Registrar, ITAT, Cochin
