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Facts
The Revenue filed appeals against an order of the CIT(A) concerning AYs 2013-14 and 2016-17. The tax effect involved in these appeals was Rs. 39,55,200/- and Rs. 24,10,200/-, respectively.
Held
The Tribunal held that the tax effect involved in the appeals was below the monetary limit prescribed by the CBDT circular for preferring appeals before the ITAT. Therefore, the Revenue was precluded from pursuing these appeals.
Key Issues
Whether the Revenue is precluded from pursuing appeals due to the tax effect being below the monetary limit prescribed by CBDT circulars.
Sections Cited
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Income Tax Appellate Tribunal, MUMBAI “A” BENCH : MUMBAI
Before: SHRI B.R. BASKARAN & SHRI ANIKESH BANERJEE
For Assessee : Shri Satish Kumar, For Revenue : Shri Suresh Periasamy, Sr.DR Date of Hearing : 28-11-2024 Date of Pronouncement : 28-11-2024 ORDER PER BENCH :
Both these appeals filed by the Revenue challenging the order dt. 22-08-2024 passed by the Ld. Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi [„Ld.CIT(A)‟] and they relate to AYs. 2013-14 & 2016-17.
At the outset, the Ld.ARsubmitted that the tax effect involved on these issues contested by the Revenue are Rs. 39,55,200/- and 24,10,200/-; respectively for AY 2013-14 & 2016-17. Accordingly, by placing reliance on the Circular No. 09/2024 dt. 17-09-2024, issued by the CBDT fixing the monetary limit for preferring appeal before the ITAT, the Ld.ARsubmitted that the above said demands are below the monetary limit of Rs. 60 lakhs prescribed in the above said circular. Accordingly, the Ld.AR submitted that the Revenue is precluded in pursuance of these appeals. Accordingly the Ld.AR prayed that both these appeals may be dismissed.
The Ld.DR, on the contrary, sought time to ascertain the tax effect involved in both the appeals.
In the rejoinder, the Ld.AR submitted that the AO himself has mentioned tax effect in the grounds of appeal filed in Form-36 and they clearly show that the tax effect involved in these appeals is less than Rs. 60 lakhs.
5. We heard the parties and perused the record.Having regard to the fact that the tax effect involved in these appeals is less than monetary limited prescribed by the CBDT circular, referred above. Accordingly, the Revenue is precluded in pursuing the appeals. Accordingly, we dismiss both the appeals.However, Liberty is granted to the Revenue to move appropriate application before the Tribunal in accordance with law for recall of this order, if it is found that the above said circulars are not applicable to these appeals or if both these appeals are covered by exceptions given in the circular No. 05/2024, dt. 15-03-2024.