INCOME TAX OFFICER, PATIALA vs. TUSHAR BANSAL, PATIALA
Facts
The Revenue filed three appeals against separate orders of the CIT(A) for assessment year 2019-20. One appeal related to assessment proceedings under sections 147 and 144, and the other two arose from penalty proceedings under sections 271AAC(1) and 272A(1)(d) of the Income Tax Act. The assessee's counsel contended that the tax effect in each appeal was below the monetary limit set by CBDT Circular for the Revenue to file appeals before the Tribunal.
Held
The Tribunal observed that the tax effect in the quantum appeal was Rs.3,77,743/- and in the penalty appeals was Rs.37,260/- and Rs.10,000/-, all being less than the Rs.60 lakh monetary limit prescribed by CBDT Circular No.09/2024 dated 17.09.2024. Consequently, the appeals were deemed not maintainable and were dismissed. The Revenue was granted liberty to revive the appeals via a Miscellaneous Application if re-verification showed a higher tax effect or if exceptional clauses applied, within the time limit of Section 254(2).
Key Issues
Whether the Revenue's appeals are maintainable before the Tribunal if the tax effect is below the monetary limit specified by the CBDT Circular.
Sections Cited
Section 147, Section 144, Section 271AAC(1), Section 272A(1)(d), Section 254(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
PER RAJPAL YADAV, VP
The present three appeals are directed at the instance of the Revenue against the separate orders of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 10.11.2025 passed in assessment years 2019-20.
A perusal of the record would indicate that ITA No. 1552/CHD/2025 emerges out from the proceedings u/s 147
ITA No.1552, 1565 & 1588/CHD/2025 A.Y.2019-20 2
read with Section 144 of the Act. The AO has passed the assessment order on 06.01.2025 whereas ITA No. 1565/CHD/2025 emerges out of penalty proceedings u/s 271AAC(1) of the Income Tax Act. The AO has passed the penalty order on 24.07.2025. ITA No. 1588/CHD/2025 emerges out from penalty order dated 23.07.2023 vide which ld. AO has levied penalty u/s 272A(I)(d) of the Income Tax Act.
The ld. counsel for the assessee at the very outset submitted that tax effect in each appeal is less than the monetary limit provided in the CBDT Circular for authorizing the revenue to file appeal before the Tribunal and hence, all these three appeals are not maintainable in their present form.
The ld. DR, on the other hand sought an adjournment on the ground that she would call for a report from the AO about the tax effect limit.
We have duly considered the rival contentions and gone through the record carefully. A perusal of Form No. 36
ITA No.1552, 1565 & 1588/CHD/2025 A.Y.2019-20 3
would indicate that tax effect in the quantum appeal is only Rs.3,77,743/- stated by the Revenue whereas in the penalty orders, this tax effect is being stated at Rs.37,260/- and Rs.10,000/- only. Thus, the tax limit in each appeal is less than the monetary limit of Rs.60 lacs provided in CBDT Circular No.09/2024 dated 17.09.2024. The CBDT has prohibited its authorities for challenging any order of ld.CIT (Appeals) before the Tribunal unless tax effect by virtue of relief given by the CIT (Appeals) exceeds Rs.60 lacs. The Circular further provides exceptional clauses where these appeals do not fall in any of the exceptional clauses contemplated in the circular.
We deem it appropriate to observe that in case, on re-verification, it comes to the notice of the Revenue that tax effect is more than the monetary limit or issue falls in any of the exceptional clauses provided in the Circular, then Revenue will be at liberty to get these appeals revived by filing a Miscellaneous Application. Such Miscellaneous Application has to be filed within the time limit provided in Section 254 sub-clause (2) of the Act.
ITA No.1552, 1565 & 1588/CHD/2025 A.Y.2019-20 4
In view of the above, these appeals are dismissed being
not maintainable.
Order pronounced on 24.02.2026.
Sd/- Sd/-
(MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�/ CIT 3. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड� फाईल/ Guard File 5.
सहायक पंजीकार/ Assistant Registrar
