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Facts
The appeal by the Revenue concerned an assessment year 2010-11 with a tax demand of Rs. 18,00,000/-. The Revenue relied on an exception clause within CBDT Circular No. 5/2024, citing a letter from the Pr. CIT-5.
Held
The Tribunal found that the CBDT Circular No. 5/2024 is applicable as the tax demand is below Rs. 60 lakhs. Therefore, the appeal is liable to be dismissed on the grounds of low tax effect. The Revenue is granted liberty to seek recall if subsequent findings bring the issue under the circular's exceptions.
Key Issues
Whether the appeal filed by the Revenue should be dismissed due to low tax effect as per CBDT Circular No. 5/2024, or if an exception applies.
Sections Cited
CBDT Circular No.5/2024
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Income Tax Appellate Tribunal, MUMBAI BENCH SMC, MUMBAI
Before: SMT. BEENA PILLAI & SMT.RENU JAUHRI
ORD ER PER BEENA PILLAI, JM: At the time of hearing, it was brought to the knowledge of the Bench that the tax on disputed amount in this case is below Rs.60 lakhs, therefore covered by CBDT Circular No.5/2024dated 15/03/2024. We find as per the CBDT Circular No.5/2024dated 15/03/2024, no appeal shall be filed by the Revenue before the Tribunal where the tax effect is below Rs.60 lakhs. In the present case, the Assessing Officer has raised tax cdemand for the assesSmenl Vear under consideration 1S Rs. 18,00,000/-.
Sumangal Commodities Pvt. Ltd. The Ld.DR though accepted the low tax effect in this appeal 2. placed reliance on the exception clause 3(i) of CBDT Circular No. 5/2024 to support the case of the revenue. He has filed a letter dated 06/08/2024 by the Pr. CIT-5 in support of his submnission, which is placed on record. 2.1. In our view, the Circular No.5 0f the CBDT is applicable to the present appealsince, the tax demand raised by the revenue. authority is below Rs.60 lakhs. Thus the present appeal is liable to be dismissed on low tax effect. However, the revenue is given liberty to move appropriate application for recall of the present order in accordance with the law, if it is subsequently found that ihe issue contested in this appeal is covered by any of the exceptions in the CBDT circular.
Accordingly, we dismiss the Revenue's appeal on maintainability and low tax effect.