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Facts
The revenue filed an appeal against the order of the CIT(A) with a delay of 8 days. The assessee's AR brought to the notice of the tribunal the revised monetary limits for filing appeals by the department, as per CBDT Circular No. 9/2024.
Held
The tribunal condoned the delay. However, observing that the tax effect in the revenue's appeal was below the prescribed monetary limit, the tribunal held that the appeal was not maintainable and was contrary to the department's policy decision.
Key Issues
Maintainability of revenue's appeal due to tax effect being below monetary limits as per CBDT circular.
Sections Cited
IT Act
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Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA
Before: SHRI GEORGE MATHAN
O R D E R This is an appeal filed by the revenue against the order dated 29.08.2025 passed by the ld. CIT(A), Kolkata for the assessment year 2022-2023.
The appeal filed by the revenue is delayed by 08 days. The department has filed condonation petition along with affidavit stating the sufficient reasons for delay in filing the appeal before the Tribunal, which in my opinion, are reasonable. Accordingly, I condone the delay and appeal of the assessee is admitted for hearing.
At the outset, the Ld. AR of the assessee submitted vide the CBDT Circular No. 9/2024 dated 17.09.2024, the monetary limits for filing of appeal by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows:
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 in the revenue's appeal is less than Rs.60,00,000/-. Since the tax effect is below the monetary limit for filing appeals before Tribunal, in view of the Circular of CBDT (supra) at the first place, Revenue should not have preferred this appeal. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department is dismissed in limine as not maintainable.
As a matter of caution, we observe that if 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 a miscellaneous petition before this Tribunal for recalling of this order.
In the result, appeal of the revenue is dismissed.