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Facts
The Revenue filed an appeal against an order of the CIT(A) for assessment year 2021-22. During the hearing, the Appellant argued that the appeal should be dismissed as the tax effect was below the monetary limit prescribed by CBDT Circular No. 9/2024.
Held
The Tribunal considered the submissions of both parties and verified the tax effect. It was found that the total tax effect involved in the appeal was Rs. 55,56,720/-, which is below the monetary limit set by the CBDT circular.
Key Issues
Whether the appeal filed by the revenue is liable for dismissal on the grounds of low tax effect below the monetary limit prescribed by the CBDT circular.
Sections Cited
115BBE
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Income Tax Appellate Tribunal, “PATNA BENCH, PATNA
Before: Shri Sonjoy Sarma & Shri Rakesh Mishra
Assessment Year: 2021-22 JCIT, Central Circle, Patna ……………..………. …………………....Appellant vs. Rakesh Kumar……........…..……………..………………….…..... Respondent Village- Amhara, PO Bihta, Patna, Pin-801118. Bihar.. [PAN: AIRPK7698D] Appearances by: Shri Ashish Kr. Agarwal, FCA appeared on behalf of the appellant. Md. Shadab Ahmed, CIT-DR , appeared on behalf of the Respondent. Date of concluding the hearing : October 14, 2025 Date of pronouncing the order : October 22, 2025 आदेश / ORDER
Per Sonjoy Sarma, Judicial Member:
This appeal filed by the revenue is directed against the order dated 30.01.2025 of the learned CIT(A), NFAC relating to the assessment year 2021–22.
At the time of hearing, the ld. AR stated that the instant appeal filed by the revenue needs to be dismissed since the tax effect involved in the appeal is below the monetary limit as per Circular No.9/2024 dated 17.09.2024 issued by CBDT. He has submitted the total tax effect on the deletion of Rs.65,00,000/- assailed in the present appeal is as under: Particular Amount Deletion by CIT(A) 65,00,000/- Tax @ 60% u/s 115BBE 39,00,000 Rakesh Kumar Surcharge @ 37% on income exceeding Rs.5 crores (in the 14,43,000/- present case the income originally assessed is Rs.5.46 crores and on reduction of relief allowed amounting to Rs.65,00,000/-, it comes to Rs.4.81 crores) Total: 53,43,000/- Add: 4% on account of Health and Education Cess on 2,13,720/- Rs.53,43,000/- Total tax effect: 55,56,720/-
On the above prayer of the ld. AR, the ld. DR did not object and stated that on due verification of the records, the tax effect involved in the instant appeal is Rs.55,56,720/- which below the monetary limit as prescribed by CBDT circular dated 17.09.24.
We, after considering the submissions of the parties and perusing the materials available on record, find that the instant appeal is below the monetary limit as prescribed by CBDT circular dated 17.09.24 and accordingly, the instant appeal is dismissed as tax effect is below the prescribed limit. However, we make it clear that at any stage, the case falls in any of the exceptions provided in the aforesaid circular or the tax effect exceeds monetary limit due to any factual error, in that event, the department shall be at liberty to move an appropriate application for recalling of the order.
In terms of the above, the appeal of the revenue is dismissed as low tax effect. Kolkata, the 22nd October, 2025.