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Facts
The Revenue challenged the Ld. Addl/JCIT(A)'s decision to delete an addition/adjustment of Rs. 1,51,10,979/- for assessment year 2020-21. The Revenue's appeal questioned whether the deletion was erroneous, especially considering the amendment to Section 143(1)(1D) and the issuance of orders under Section 143(1)(a) after a notice under Section 143(2) of the Income Tax Act.
Held
The Tribunal dismissed the Revenue's appeal as not maintainable, citing the recently issued CBDT Circular No.09 of 2024. This circular mandates dismissal of appeals where the tax effect does not exceed the revised monetary limit of Rs. 60 Lakhs, which was the case here (tax effect not exceeding Rs. 60 Lakhs). The Revenue was granted the liberty to seek restoration of its appeal if the aforesaid CBDT Circular was found inapplicable.
Key Issues
Whether the Ld. CIT(A) erred in deleting an addition/adjustment of Rs. 1.51 Crores. And whether the Revenue's appeal was maintainable in light of CBDT Circular No.09/2024 regarding monetary limits for appeals.
Sections Cited
143(1)(1D), 143(1)(a), 143(2)
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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI PRADIP KUMAR KEDIA & SHRI PRADIP KUMAR KEDIA & SHRI PRADIP KUMAR KEDIA & SHRI SUDHIR PAREEKSHRI SUDHIR PAREEK
ORDER
PER PRADIP KUMAR KEDIA PRADIP KUMAR KEDIA, AM :
The captioned appeal has been filed at the instance of the The captioned appeal has been filed at the instance of the The captioned appeal has been filed at the instance of the Revenue against the order of the Revenue against the order of the Ld. CIT(A)/ADDL/JCIT(A) /ADDL/JCIT(A)-9, Mumbai [“Ld. CIT(A)”], dated 1 CIT(A)”], dated 19.03.2024 concerning assessment concerning assessment year 2020-21.
The grounds of appeal
raised by the Revenue read as under: The grounds of appeal raised by the Revenue read as under:- The grounds of appeal raised by the Revenue read as under: 1. “Whether on the facts and in the circumstances of the case “Whether on the facts and in the circumstances of the case “Whether on the facts and in the circumstances of the case and in law, the Ld. Addl/JCIT( and in law, the Ld. Addl/JCIT(A) has erred in deleting the A) has erred in deleting the addition/adjustment aggregating to Rs. 1,51,10,979/ addition/adjustment aggregating to Rs. 1,51,10,979/- addition/adjustment aggregating to Rs. 1,51,10,979/ relying on the judgment of Hon'ble Supreme Court in the relying on the judgment of Hon'ble Supreme Court in the relying on the judgment of Hon'ble Supreme Court in the case of CIT Vs Gujarat Electricity Board 260 ITR 84 case of CIT Vs Gujarat Electricity Board 260 ITR 84 case of CIT Vs Gujarat Electricity Board 260 ITR 84 ignoring the fact that provision to section 143(1)(1D) has ignoring the fact that provision to section 143(1)(1D) has ignoring the fact that provision to section 143(1)(1D) has changed allowing allowing allowing processing processing processing of of of such such such Returns Returns Returns w.e.f w.e.f w.e.f assessment year commencing on or after 01.04.2017? assessment year commencing on or after 01.04.2017? assessment year commencing on or after 01.04.2017?
2. Whether on the facts and in the circumstances of the case Whether on the facts and in the circumstances of the case Whether on the facts and in the circumstances of the case and in law, the Ld Addl/JCIT(A) has erred in deleting the and in law, the Ld Addl/JCIT(A) has erred in deleting the and in law, the Ld Addl/JCIT(A) has erred in deleting the Rs. 1,5 addition/adjustment aggregating to Rs. 1,51,10,979/- addition/adjustment aggregating to Rs. 1,5 without dealing with the merit of additions/adjustments without dealing with the merit of additions/adjustments without dealing with the merit of additions/adjustments and holding that the order u/s 143(1)(a) cannot be issued and holding that the order u/s 143(1)(a) cannot be issued and holding that the order u/s 143(1)(a) cannot be issued after issuance of notice u/s 143(2) of the Act.” after issuance of notice u/s 143(2) of the Act.”
At the time of hearing, it was submitted by the Ld.AR for the At the time of hearing, it was submitted by the Ld.AR for the At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently appeal filed by the Revenue is hit by recently appeal filed by the Revenue is hit by recently issued CBDT Circular No.09 of 2024 CBDT Circular No.09 of 2024 dated 17.09.2024 17.09.2024 revising the previous thresholds pertaining to tax effects. As per aforesaid the previous thresholds pertaining to tax effects. As per aforesaid the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be Circular, all pending appeals filed by Revenue are liable to be Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect measure for reducing litigation where the tax effect measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised does not exceed the prescribed monetary limit which is now revised does not exceed the prescribed monetary limit which is now revised at Rs.60 Lakhs. In the instant case, the tax effect on the disputed at Rs.60 Lakhs. In the instant case, the tax effect on the disputed at Rs.60 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.60 issues raised by the Revenue is stated to be not exceeding Rs.60 issues raised by the Revenue is stated to be not exceeding Rs.60 lakhs and therefore, appeal of the Revenue is required to be akhs and therefore, appeal of the Revenue is required to be akhs and therefore, appeal of the Revenue is required to be dismissed in limine.
The Ld.Sr.DR for the Revenue fairly admitted the applicability DR for the Revenue fairly admitted the applicability DR for the Revenue fairly admitted the applicability of the CBDT Circular No.09 of 2024 dated 17.09.2024. Accordingly, of the CBDT Circular No.09 of 2024 dated 17.09.2024. Accordingly, of the CBDT Circular No.09 of 2024 dated 17.09.2024. Accordingly, appeal of the Revenue is dismissed as not m appeal of the Revenue is dismissed as not maintainable. However, aintainable. However, it will be open to the Revenue to seek restoration of its appeal on it will be open to the Revenue to seek restoration of its appeal on it will be open to the Revenue to seek restoration of its appeal on showing inapplicability of the aforesaid CBDT Circular in any showing inapplicability of the aforesaid CBDT Circular in any showing inapplicability of the aforesaid CBDT Circular in any manner.
In the result, the appeal of the Revenue is dismissed. In the result, the appeal of the Revenue is dismissed. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Co Order pronounced in the open Court on 13th November, 2024. November, 2024.
Sd/- Sd/- (SUDHIR PAREEK) (PRADIP KUMAR KEDIA) PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER * Amit Kumar *