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Facts
The Revenue filed an appeal against the order of the Commissioner of Income Tax (Appeals)-13, Ahmedabad for Assessment Year 2015-16. The assessee submitted that the tax effect involved in the departmental appeal was Rs. 17,02,535, which is below the monetary limit of Rs. 60,00,000 for appeals before the ITAT as per CBDT Circular No. 09/2024.
Held
The Ld. CIT-DR could not dispute the assessee's tax calculation but requested liberty to revive the appeal if any exclusion clause in CBDT Circulars No. 5/2024 or 9/2024 applied. The Tribunal, acknowledging this, dismissed the appeal due to low tax effect, granting the department the requested liberty to revive it under specified exceptions.
Key Issues
Whether the Revenue's appeal should be dismissed due to the tax effect being below the monetary limit prescribed by CBDT circulars for filing appeals before the ITAT.
Sections Cited
143(3), 92CA, 14A, 154
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Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: DR. BRR Kumar & Shri T. R. Senthil Kumar
The ACIT M/s. Schaeffler India Ltd. Circle-1(1)(1), (Formerly known as INA Vadodara Vs Bearing India Pvt. Ltd.) P.O. Maneja, Maneja Vadodara-390013 Gujarat (Appellant) PAN: AAACI7163H (Respondent) Revenue Represented: Shri Kamlesh Makwana, CIT-DR Assessee Represented: Shri Milin Mehta & Shri Bhavin Marfatia, A.Rs. Date of hearing : 09-02-2026 Date of pronouncement : 12-02-2026 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
This appeal is filed by the Revenue as against appellate order dated 14-08-2025 passed by the Commissioner of Income Tax (Appeals)-13, Ahmedabad arising out of the assessment order passed under section 143(3) r.w.s. 92CA of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2015-16.
Ld. Counsel for the assessee vide letter dated 05-02-2026 submitted that the tax effect in this department appeal is below Rs. 60 lakhs, hence liable to be withdrawn as per Board’s Circular. The letter filed by the assessee is reproduced as follows:
“2. As per CBDT circular no. 09/2024 dated 17th September 2024, the monetary limit for Departmental Appeal before the Hon'ble ITAT has been set at Rs. 60,00,000. In case of the Appellant, the tax effect is Rs. 17,02,535 and not Rs. 4,07,64,244 as mentioned in Sr. No. 10 of appeal filed by the Department in Form 36 dated 28.10.2025 3. It is submitted that the Asst. Commissioner of Income Tax, Circle-11, Pune ("AO") in the order passed u/s 143(3) r.w.s 92CA(4) dated 01.12 2018 made following additions: Nature of Addition / Disallowance Amount (Rs) Disallowance of Brought Forward Loss for 11,36,89,854 previous years Disallowance u/s 14A 3,28,402 Addition of interest on income tax refund 59,11,584 Allowance of depreciation (7,88,858)
4. After making above additions to the returned income, the learned AO assessed total income at Rs. 47,42,69,010 and determined tax demand of Rs. 5,07,81,560 on it.
5. Subsequently, the Asst. Commissioner of Income Tax, Circle 1(1)(1), Vadodara passed an order u/s 154 r.w.s 143(3) dated 01.10.2023 rectifying the mistake of Brought Forward Loss and thereby assessed total income at Rs. 35,85,59,241. The tax refund on rectified income was determined at Rs. 6,75,45,949. The copy of rectification order u/s 154 r.w.s 143(3) dated 01.10.2023 is enclosed as Annexure-1 for your ready reference.
As per para 5.1 of CBDT circular no. 5/2024 dated 15.03.2024 (enclosed as Annexure-2), "tax effect" means difference between tax on total income assessed and tax that would have been chargeable had such total income been reduced by the amount of income in respect of issues against which appeal is intended to be filed. Further, tax effect shall include applicable surcharge and cess but will not include interest payable unless appeal is against disputed interest. Based on the above, the tax effect is worked out as under:
Particulars As per order As per Return Difference u/s 154 r.w.s of income (Rs) 143(3) Total income 35,85,59,241 35,35,50,310 50,08,931 Tax payable on total income 12,18,74,285 12,01,71,750 17,02,535 including surcharge and cess but excluding interest
7 Considering the above, it is submitted that the tax effect involved in the appeal is Rs. 17,02,535 which is below the prescribed monetary limit.”
Ld. CIT-DR appearing for the Revenue could not contravent the above Tax calculation given by the assessee, however requested liberty be given to the department to revive the above appeal in the event of any exclusion clause as mentioned in the CBDT Circular No. 5/2024.
Recording the same, the appeal filed by the Revenue is dismissed on account of Low Tax Effect with liberty to the department to revive the appeal in the event of any exception as prescribed in the CBDT Circular Nos. 5 & 9/2024.
In the result, the appeal filed by the Revenue is hereby dismissed.
Order pronounced in the open court on 12 -02-2026