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Facts
The Revenue preferred an appeal against an order passed by the CIT(A) for the assessment year 2019-2020. The appeal raised grounds regarding the deletion of disallowance of deduction claimed under Section 43B of the Act. However, the Departmental Representative submitted that the tax effect involved was below the threshold limit.
Held
The Tribunal noted that the monetary limit for filing appeals by the Revenue has been enhanced by CBDT Circular No. 09/2024 dated 17.09.2024. This circular applies to pending appeals as well. Consequently, the Revenue sought to withdraw the appeal.
Key Issues
Whether the appeal is maintainable given the tax effect below the enhanced monetary limit for filing appeals by the Revenue.
Sections Cited
43B
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Income Tax Appellate Tribunal, MUMBAI BENCH “C” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI SANDEEP SINGH KARHAIL
This appeal is preferred by the Revenue against order dated 29.02.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2019-2020, raising following grounds:
1. "Whether on the facts and in the circumstances of the case and in law, the Id. CIT(A) was justified in deleting the Disallowance of deduction claimed deduction claimed , us. 43B of the Act of Rs. 1,49.35,897/ , us. 43B of the Act of Rs. 1,49.35,897/-without appreciating the facts that the assessee is not eligible to claim the appreciating the facts that the assessee is not eligible to claim the appreciating the facts that the assessee is not eligible to claim the contribution to gratuity without reporting the same in the tax audit contribution to gratuity without reporting the same in the tax audit contribution to gratuity without reporting the same in the tax audit report by the auditor or the assessee." report by the auditor or the assessee."
2. At the outset, the Ld. D At the outset, the Ld. Departmental Representative (DR) epartmental Representative (DR) submitted that tax effect involved in the appeal is below the submitted that tax effect involved in the appeal is below the submitted that tax effect involved in the appeal is below the threshold limit of Rs.60,00,000/ threshold limit of Rs.60,00,000/- which has been recently which has been recently enhanced by the Central Board of Direct Taxes (CBDT) vide Circular by the Central Board of Direct Taxes (CBDT) vide Circular by the Central Board of Direct Taxes (CBDT) vide Circular No. 09/2024 New Delhi dated 17.09.202 No. 09/2024 New Delhi dated 17.09.2024 and therefore, the 4 and therefore, the Revenue seeks to withdraw the present appeal. Revenue seeks to withdraw the present appeal.
We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the relevant material on record. We find that the monetary limit for relevant material on record. We find that the monetary limit for relevant material on record. We find that the monetary limit for filing the appeal by the Revenue before the Income-tax Appellate filing the appeal by the Revenue before the Income filing the appeal by the Revenue before the Income Tribunal has been enhanced to Rs.60,00,000/ Tribunal has been enhanced to Rs.60,00,000/- vide Circular No. vide Circular No. 09/2024 dated 17.09.2024 and 09/2024 dated 17.09.2024 and as per para 5 of the said Circular, as per para 5 of the said Circular, the said circular apply to the appeals pending before the Tribunal the said circular apply to the appeals pending before the Tribunal the said circular apply to the appeals pending before the Tribunal also. The relevant Circular is reproduced as under: also. The relevant Circular is reproduced as under: Circular No. 09/2024 Cir F.No.279/Misc./M F.No.279/Misc./M-74/2024-ITJ Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ******** New Delhi, 17th September, 2024 New Delhi, 17 Sub:- Further enhancement of Monefary limits for filing of appeals Further enhancement of Monefary limits for filing of appeals Further enhancement of Monefary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High by the Department before Income Tax Appellate Tribunal, High by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court: amendment to Courts and SLPs/appeals before Supreme Court: amendment to Courts and SLPs/appeals before Supreme Court: amendment to Circular 5 of 2024 5 of 2024- Measures for reducing litigation Measures for reducing litigation - Reg.
Reference is invited to Circular No 5/2024 (F.No.279/Misc.l42/2007 Reference is invited to Circular No 5/2024 (F.No.279/Misc.l42/2007 Reference is invited to Circular No 5/2024 (F.No.279/Misc.l42/2007- ITJ(Pt.)) dated 15.03.2024 of Central Board of Direct Taxes (the 'Board') ITJ(Pt.)) dated 15.03.2024 of Central Board of Direct Taxes (the 'Board') ITJ(Pt.)) dated 15.03.2024 of Central Board of Direct Taxes (the 'Board') vide which monetary limits for filing of income tax appeals by the vide which monetary limits for filing of income tax appeals by the vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal. Department before Income Tax Appellate Tribunal. Department before Income Tax Appellate Tribunal. High Courts and SLP/appeals before Supreme Court have been specified. Further, SLP/appeals before Supreme Court have been specified. Further, SLP/appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and exceptions to the monetary limits were also specified vide paras 3.1 and exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular. 3.2 of the said Circular.
As a step towards management of litigation, it has been decided by the 2. As a step towards management of litigation, it has been decided by the 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 rd to revise the monetary limits for filing of appeals in Income-tax rd to revise the monetary limits for filing of appeals in Income cases as stated in Para 4.1 of the aforementioned Circular as follows: cases as stated in Para 4.1 of the aforementioned Circular as follows: cases as stated in Para 4.1 of the aforementioned Circular as follows: SI. No. Appeals/SLPs in Income-tax matters Appeals/SLPs in Income Monetary Monetary Limit Limit (Tax (Tax effect in Rs.) effect in 1. Before Income Tax Appellate Tribunal Before Income Tax Appellate 60 lakh 2. Before High Court Before High Court 2 wore 3. Before Supreme Court Before Supreme Court 5 crore 3 Monetary limits given in paragraph 2 above with regard to filing 3 Monetary limits given in paragraph 2 above with regard to filing 3 Monetary limits given in paragraph 2 above with regard to filing appeal/SLP shall be applicable to all cases including those relating to appeal/SLP shall be applicable to all cases including those relating to appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income TDS/TCS under the Income-tax Act, 1961 with exceptions as per paras 1961 with exceptions as per paras 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision 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 to appeal/file SLP shall be taken on merits, without regard to the tax to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits. effect and the monetary limits.
4. It is clarified that an appeal should not be 4. It is clarified that an appeal should not be filed merely because the tax filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of effect in a case exceeds the monetary limits prescribed above. Filing of effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. The officers appeal in such cases is to be decided on merits of the case. The officers appeal in such cases is to be decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing concerned shall keep in mind the overall objective of reducing concerned shall keep in mind the overall objective of reducing unnecessary litig unnecessary litigation and providing certainty to taxpayers on their ation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an tax assessments while taking a decision regarding filing an tax assessments while taking a decision regarding filing an appeal.
The modifications shall come into effect from the date of issue of this 5. The modifications shall come into effect from the date of issue of this 5. The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to Circular. This Circular will apply to SLPs/appeals to Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be before Supreme Court/High Courts/Tribunal, which may accordingly be before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn.
6. The above may be brought to the notice of all concerned.
6. The above may be brought to the notice of all concerned.
The above may be brought to the notice of all concerned.
This issues under section 7. This issues under section 268A of the Income-tax Act, 1961. tax Act, 1961.
3.1 Accordingly, the appeal filed by the Revenue is dismissed as Accordingly, the appeal filed by the Revenue is dismissed as Accordingly, the appeal filed by the Revenue is dismissed as withdrawn.
In the result, the appeal filed by the Revenue is dismissed as In the result, the appeal filed by the Revenue is dismissed as In the result, the appeal filed by the Revenue is dismissed as withdrawn.
Order pronounced in the open Court on nounced in the open Court on 27/09/2024. /09/2024.