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Facts
The Revenue filed an appeal before the Income Tax Appellate Tribunal against the order of the CIT(A). The tax effect in the case was Rs. 2,65,664/-, which was below the monetary limit for filing appeals as per CBDT Circular No. 09/2024.
Held
The Tribunal noted that as per CBDT Circular No. 09/2024, appeals by the Revenue have a monetary limit of Rs. 60,00,000/-. Since the tax effect in this case was below this limit, the appeal was dismissed on the grounds of low tax effect.
Key Issues
Whether the appeal filed by the Revenue is admissible considering the low tax effect as per the CBDT circular.
Sections Cited
250, Income Tax Act, 1961
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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI PARTHA SARATHI CHAUDHURY
Date of Hearing : 23/01/2025 Date of Pronouncement : 27/01/2025 O R D E R
This captioned appeal filed by the Revenue emanates from the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (In short ‘the ld. CIT(A)”) dated.16.07.2024 passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year 2016-17 as per the grounds of appeal on record. This appeal was heard and disposed off on low tax effect.
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At the very outset, the ld. DR submitted that the tax effect in this case is Rs.2,65.664/-.
As evident from the aforesaid submission the tax effect is below the tax limit for filling appeal before the Tribunal as contemplated by the recent Circular of CBDT No. 09/2024, dated 17.09.2024.
3. That as per the said Circular No. 09/2024, it is mandated that appeal to be filed by the Revenue before the Tribunal has to be of the monetary limit of Rs.60,00,000/- and above. The relevant extract of the aforesaid circular is as follows:
“2. As a step towards management of litigation, it has been decided by the Board to revise the monetary limits for filing of appeals in Income-tax cases as stated in para 4.1 of the aforementioned Circular as follows: Sl.no. Appeals/SlPs in Income- Monetary tax matters Limit (Tax effect in Rs.) 1. Before Income Tax 60 Laklh Appellate Tribunal 2. Before High Court 2 Crore 3. Before Supreme Court 5 Crore
Monetary limits given in paragraph 2 with regard to filing appeal/ SLP shall be applicable to all cases including those relating to TDS/ TCS under the Income-tax Act, 1961 with exceptions as per paras 3.1 and 3.2 of Circular No. 5/2024 dated 15.03.2024, where the decision to appeal/ file SLP shall be taken on merits, without regard to the tax effect and the monetary limits.”
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In view of the directives pertaining to the circular which is binding on the Department and after hearing the submissions of the ld. DR, I dismiss this appeal of the Revenue on low tax effect. However, in the near future if this case falls within any of the “exceptions” then in such situation the Revenue shall be at liberty to apply for restoration of such appeal as per law before the Tribunal.
As per the above terms, this appeal of the Revenue is dismissed on the ground of low tax effect.
In the result, the appeal of the Revenue is dismissed..
Order pronounced in the open court on 27/01/2025.