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Facts
The Revenue filed an appeal challenging an order for the assessment year 2010-11. The case was based on an audit objection, but the tax effect involved was below the prescribed monetary limit.
Held
The Tribunal, relying on CBDT circulars and a precedent from the Mumbai bench, held that appeals with a tax effect below the revised monetary limit of Rs. 60,00,000, even if based on audit objections, are liable to be dismissed as withdrawn.
Key Issues
Whether the appeal can be dismissed as withdrawn due to low tax effect, despite being based on an audit objection.
Sections Cited
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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 16/06/2025 Date of Order – 16/06/2025
O R D E R PER K.M. ROY, A.M.
The present appeal has been filed by the Revenue challenging the impugned order dated 28/02/2019, passed by the learned Commissioner of Income Tax (Appeals)–2, Nagpur, [“learned CIT(A)”], for the assessment year 2010–11.
Admittedly, this case is based on the audit objection, however, tax effect involved is below than the prescribed limit. As mentioned in latest Circular dated 17/09/2024 by the CBDT, wherein no exception is carved out in respect of cases pertaining to the audit objection, meaning thereby that even if the case is based on the audit objection, then the case/appeal can be dismissed as withdrawn in case the tax effect/monetary limit is not exceeding
2 M/s. A.M.G. Transformer Consortium ITA no.119/Nag./2019 ` 50,00,000 which is now revised to ` 60,00,000, as also observed by the coordinate bench of the Tribunal at Mumbai in the case of ITO (Exemption)– 2(1) vs. M/s. Matoshri Arts & Sports Trust (ITA No. 2938/M/2023, dt. 15/10/2024) by observing and holding as under:– “5. Considering the peculiar facts and circumstances of the case and the circulars referred to above specifically dated 15.03.2024 from which it is clear that no exception is carved out in respect of audit objection, meaning thereby that even if the case is based on the audit objection, then the case/appeal can be dismissed as withdrawn in case the tax effect/monitory limit is not exceeding Rs.50,00,000/- which is now revised to Rs.60,00,000/- by the CBDT latest circular No.9/2024 dated 17.09.2024. Hence, the appeal filed by the Revenue Department is liable to be dismissed as withdrawn.
In the result, the appeal filed by the Revenue Department stands dismissed as withdrawn.”
Thus, the appeal of the Revenue Department stands dismissed as withdrawn for low tax effect involved.
In the result, appeal of the Revenue Department is dismissed as withdrawn. Order pronounced in the open Court on 16/06/2025