Loading judgment…
Facts
The Revenue filed an appeal against the order of the NFAC, New Delhi, pertaining to assessment year 2018. The appeal was directed against a penalty order passed under Section 271AAC(1) of the Income Tax Act, 1961. The tax effect in this appeal was Rs. 52,37,394/-, which was below the revised monetary limit for filing appeals.
Held
The Tribunal noted that both parties agreed that the tax effect was below the monetary limit for filing appeals as per CBDT Circulars No. 5/2024 and 09/2024. Consequently, the appeal filed by the Revenue was deemed not maintainable.
Key Issues
The primary issue was whether the appeal filed by the Revenue was maintainable considering the revised monetary limits for filing appeals before the ITAT.
Sections Cited
271AAC(1), 147, 144, 144B, 254(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘C’: NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI BRAJESH KUMAR SINGH,
This appeal by the Revenue is directed against the order of the National Faceless Appeal Centre (NFAC), New Delhi, dated 10.06.2025 [hereinafter referred to as the ‘Ld. CIT(A)’] arising out of the Penalty order dated 14.08.2023
ITA No.- 5141/Del/2025 passed under Section 271AAC(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) pertaining to A.Y. 2018. 2. At the outset, it was pointed out by the Sr. AR that the tax effect in this appeal is Rs. 52,37,394/- and referred to the grounds of the appeal which are as under:
“(i) The assessment in the above said case completed u/s 147 r.w.s 144 r.w.s. 144B dated 28.02.2023 with addition of Rs. 8,75,15,910/-. The decision of Ld. CIT(A) vide order dated 09.06.2025 on the deletion of Rs. 8,72,89,905/- which involves tax effect of Rs. 6,74,31,452/- is not acceptable and further appeal before the Hon’ble ITAT is recommended vide ITA No. 4792/Del/2025. (ii) The tax effect involved in the deletion of penalty u/s 271AAC1 in this case is Rs. 52,37,394/- which is below the monetary limit for filing further appeal before the Hon'ble ITAT. A Further appeal has also been filed against the assessment order u/s 147 r.w.s. 144 r.w.s. 144B dated 28.02.2023 before the ITAT, therefore further appeal is also recommended.”
The Ld. Sr. DR did not object to the above submission of the assessee.
We have heard both the parties and perused the material available on record. Both sides, [Representatives of Revenue and the Assessee] were in agreement, at the time of hearing before us, that the tax effect in the present appeal is below Rs. 60,00,000/-. Therefore, in view of the CBDT, Circulars No. 5/2024 dated 15th March 2024 and 09/2024 dated 17/09/2024 revising the monetary limit for filing of the departmental appeals before the ITAT to Rs. 60,00,000/-, the appeal filed by the Revenue is not maintainable and same is dismissed.
Page 2 of 4
ITA No.- 5141/Del/2025
We further clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961, seeking restoration of the above appeal if it is found by them that the same was covered in the exceptions as laid down in the aforesaid CBDT Circulars.
In the result, appeal filed by the Revenue is dismissed.
Order pronounced in the Open Court on 19.01.2026
Sd/- Sd/- (CHALLA NAGENDRA PRASAD) (BRAJESH KUMAR SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 20/01/2026. Pooja/-