Loading judgment…
Facts
The revenue preferred an appeal against the CIT(A)'s order for Assessment Year 2016-17. The tax effect of Rs. 45,000/- was below the Rs. 60 lakh limit set by CBDT Circular No.09/2024 for filing appeals to the ITAT. While departmental personnel (A.O. and Range Head) opined that the case did not fall into any exception, the Pr. CIT asserted it fell under exception 3.1(h) of CBDT Circular No.05/2024 without providing reasons.
Held
The Tribunal dismissed the revenue's appeal. It was held that since the tax effect was below the prescribed limit of Rs. 60 lakhs as per CBDT Circular No.09/2024, and the Pr. CIT failed to provide reasons or evidence to support his claim that the case fell under an exception, the appeal was not maintainable. The Pr. CIT's decision was deemed arbitrary, perverse, and bereft of reasoning.
Key Issues
Whether the revenue's appeal is maintainable before the ITAT given that the tax effect is below the monetary limit prescribed by CBDT circulars, and if any claimed exception to this limit is valid and reasoned.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAIPUR BENCH “SMC”, RAIPUR
Before: SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER
PER PARTHA SARATHI CHAUDHURY, JM
This appeal preferred by the revenue emanates from the order of the Ld. CIT(Appeals)/NFAC, dated 07.02.2025 for the assessment year 2016- 17 as per the grounds of appeal on record.
2. At the very outset, it is noted that the tax effect involved in the present appeal is only Rs.45,000/- which is below the prescribed limit of Rs.60 lakhs for filing appeal before the Tribunal as per CBDT Circular No.09/2024, dated 17.09.2024 issued by the CBDT. In this regard, the Range Head and the A.O had opined as evident in the letter of the Pr.CIT, at Para 3 that the case of the assessee does not fall in any exception of Para 3 of the CBDT Circular No.05/2024, dated 15.03.2024, further appeal to ITAT is not required to be filed. For the sake of clarity, the relevant Para 3 is culled out as follows: “3. The decision of the ld.CIT(A) is not acceptable in principle, however looking to the tax effect of Rs.45,000/- which is below the prescribed limit of Rs.60,00,000/-for filing appeal before Hon’ble ITAT as per the CBDT’s Circular No.05/2024, dated 15.03.2024 issued by the CBDT and also, the case of the assessee does not fall in any exception of Para 3 of the said circular, further appeal to ITAT is not required to be filed.”
However, the Pr. CIT without explaining any reason harping upon the CBDT Circular (supra) opined that accepting the tax effect involved in the present appeal is only Rs.45,000/- i.e. below the prescribed limit of Rs.60 lakhs as per the aforesaid CBDT Circular (supra), but the case falls under the exception clause 3.1(h) of the said CBDT Circular No.05/2024, dated 15.03.2024. The Ld. Pr. CIT has not provided any reasons as to why the case of the assessee falls within exception 3.1(h) of CBDT circular wherein his own department personnel i.e. the A.O as well as range head clearly states that there is no need for appeal before ITAT since the appeal is below tax effect and the case of the assessee do not fall in exception of Para 3.1(h) of said CBDT circular. That without being supported with reasons such decision of the Pr. CIT only becomes arbitrary, perverse and bereft of reasoning. The Ld. Sr. DR could not bring on record any evidence nor could make any submission regarding the issue and simply relied on the findings of the Revenue Authorities. At the same time, regarding whether the case falls within some exception as per CBDT Circular, the Ld. Sr. DR was also silent and had nothing to say in this regard. Accordingly, at the threshold itself even without going into the merits of the case, since the tax effect involved in the present appeal is below the prescribed limit of Rs. 60 lakhs as per CBDT Circular No.09/2024, dated 17.09.2024, therefore, the appeal of the revenue is liable to be dismissed on account of low tax effect. I order accordingly.
In the result, appeal of the revenue is dismissed. Order pronounced in open court on 10th day of June, 2025.