INCOME TAX OFFICER, MORBI vs. NEETABEN ATULBHAI SHERASIYA, MORBI

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ITA 364/RJT/2025Status: DisposedITAT Rajkot13 October 2025AY 2017-18Bench: DR. ARJUN LAL SAINI (Accountant Member), SHRI DINESH MOHAN SINHA (Judicial Member)1 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the tax effect was less than Rs. 60,00,000/-, which is the revised monetary limit for appeals as per CBDT Circular No. 09/2024. The Tribunal held that CBDT circulars are binding on the Revenue.

What were the facts?

The appeal by the Revenue pertains to AY 2017-18 and challenges an order passed by the NFAC. The issue involves an addition/disallowance of Rs. 18,78,000/-, with a total tax effect of Rs. 14,50,755/-.

What were the issues?

Whether the appeal filed by the Revenue is maintainable in light of the tax effect being below the revised monetary limits prescribed by the CBDT Circular No. 09/2024.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA

For Appellant: Shri Chetan Agarwal, Ld. A.R
For Respondent: Shri Abhimanyu Singh Yadav, Sr. DR
Hearing: 27/08/2025Pronounced: 13/10/2025

आदेश / O R D E R Per, Dr. Arjun Lal Saini, AM: The captioned appeal filed by the Revenue, pertaining to Assessment Year (AY) 2017-18, is directed against the order passed by the National Faceless Appeal Centre (NFAC), Delhi dated 27-03-2025 which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short the ‘Act’) dated 26.05.2023.

2.

In this revenue’s appeal in , we noticed that revenue has raised ground in respect of addition deleted by the ld. CIT(A), which relates to addition/disallowance of Rs. 18,78,000/- on which total tax comes to Rs.14,50,755/-, which comes in the ambit of tax effect of CBDT Circular vide Circular No. 09/2024 dated 17.09.2024.

3.

The CBDT has issued Circular No. 09/2024 dated 17.09.2024, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:

1.

Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/-

4.

In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. Though this appeal had been filed by the revenue on 29/05/2025 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, however, in view of the recent Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.09/2024 referred to above.

5.

It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs. Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute. The appeal under consideration has certainly been filed contrary to the Circular issued by the CBDT Circular No.09 dated 17.09.2024

6.

In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order.

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