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Facts
The Revenue filed an appeal against the order of the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeal) for Assessment Year 2017-18. The Revenue itself acknowledged in its grounds that the tax effect in the appeal was Rs. 59,51,510/-, which was also confirmed by the Assessing Officer to be below the monetary limit for filing an appeal before the ITAT.
Held
The Income Tax Appellate Tribunal dismissed the appeal filed by the Revenue. It held that the appeal pertained to a low tax effect case, as the tax effect of Rs. 59,51,510/- was less than the revised monetary limit of Rs. 60,00,000/- for departmental appeals to the ITAT, as stipulated by CBDT Circular No. 09 of 2024 dated 17/09/2024.
Key Issues
Whether the Revenue's appeal is maintainable before the ITAT when the tax effect is below the monetary limit prescribed by the CBDT for departmental appeals.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCH: ‘C’: NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI NAVEEN CHANDRA,
Per Mahavir Singh, Vice President :
This appeal by the Revenue is arising out of the order of National Faceless Appeal Centre (NFAC)/ Commissioner of Income Tax (Appeal), Delhi, in Appeal No. ITBA/NFAC/S/250/2016- 17/10123079(1), dated 20.05.2024 for the Assessment Year 2017- 18.
ITA No.- 3583/Del/2024 Jatin Arora 2. At the outset, it is noticed that the Revenue has accepted in its ground itself that the tax effect in this appeal is Rs. 59,51,510/-.
The relevant ground reads as under:
“(i) Whether, on the facts and circumstances of the case and law, the Ld. CIT(A) has erred in deleting the addition made during the assessment proceedings. Further, the tax effect in this case is Rs. 59,51,510/- which is above the monitoring limit for filing the appeal before the Hon’ble ITAT, therefore, further appeal is recommended in this case.”
This appeal pertains to a low tax effect case, and even the report of the Assessing Officer (AO) dated 27.11.2024 categorically states that the tax effect is below the monetary limit prescribed for filing an appeal before the ITAT. However, the CBDT, in its Circular No. 09 of 2024 dated 17/09/2024, has recently revised the monetary limit for filing of the departmental appeals before the ITAT to Rs. 60,00,000/-. Hence, the appeal is dismissed.
In the result, appeal filed by the Revenue is dismissed.
Order pronounced in the Open Court on 28.11.2024