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Facts
The Revenue filed appeals against the order of CIT(A)-30 for A.Y. 2013-14 and 2016-17, arising from assessment orders under Section 153A of the Income Tax Act. The assessee's counsel contended that the tax effect on the disputed amount was below the monetary limit of Rs. 60,00,000/-, making the appeals non-maintainable as per a CBDT Circular.
Held
The Tribunal found that the tax effect was indeed below Rs. 60,00,000/- as per CBDT Circular No. 05/2024 dated 15.03.2024, and no exceptions to the circular were applicable. Consequently, the Revenue's appeals were dismissed as deemed withdrawn, with liberty to revive them if the tax effect exceeds the limit or falls under an exception. The assessee's cross-objections were also dismissed as infructuous.
Key Issues
Whether the Revenue's appeals are maintainable before the Tribunal given the low tax effect as per CBDT circulars.
Sections Cited
153A
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Income Tax Appellate Tribunal, “H” BENCH, DELHI
Before: MS. MADHUMIT ROY & SHRI BRAJESH KUMAR SINGH
The present appeals filed by the revenue and cross objections filed by the assessee are directed against the order passed by the CIT(A)-30, arising out of the Assessment Order for A.Y. 2013-14 & 2016-17 u/s 153A of the Act.
At the outset, learned counsel appearing for the assessee submitted that the tax effect on the amount disputed by the Revenue in the present appeal is below the monetary limit of Rs.60,00,000/-. Hence, appeal is not maintainable.
Learned Departmental Representative fairly accepted the aforesaid factual position. However, he submitted, liberty may be granted to Revenue to revive the appeal, in case, subsequently it is found that the tax effect on the amount disputed is more than Rs. 60,00,000/- or the appeal is covered by any of the exceptions provided to the tax effect circular.
We have considered the rival submissions and perused the materials on record. After perusing the respective orders of the departmental authorities and the facts mentioned in the memorandum of appeal filed in Form No. 36, we find that the tax effect on the amount disputed by the Revenue in the present appeal is below the monetary limit of Rs.60,00,000/- fixed in CBDT Circular no. 05/2024 dated 15.03.2024 for filing an appeal before the Tribunal. There is nothing on record to suggest that the appeal of Revenue is protected by any of the exceptions to the aforesaid circular. Thus, in our view, the present & 1314/Del/2021 C.O. 145 & 146/Del/2022 appeal is covered under CBDT Circular no. 05/2024 dated 15.03.2024. Accordingly, the appeal is deemed to have been withdrawn, hence, dismissed. However, liberty is granted to the Revenue to seek revival of the appeal is protected under any of the exceptions provided to the Circular noted above.
In view of the appeals being dismissed due to low tax effect the Cross Objections in respect of the same appeals is found to be erroneous and hence, dismissed as infructous.
Order pronounced in the open Court on 25.11.2024