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Facts
The Revenue filed two appeals against the orders of the CIT(A) which had partly allowed the assessee's appeals and directed the assessing officer to recalculate the penalty. The tax effect in these appeals was Rs. 4,25,700/- and Rs. 2,40,110/- respectively.
Held
The Tribunal noted that as per CBDT circulars, appeals with a tax effect below Rs. 50,00,000/- are not to be filed before the Tribunal. Since the tax effect in these appeals was below the monetary limit specified in the circulars, the appeals were considered infructuous.
Key Issues
Whether the appeals filed by the Revenue are to be dismissed as infructuous due to the tax effect being below the monetary limit specified by CBDT circulars.
Sections Cited
271(1)(c), 250
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Income Tax Appellate Tribunal, ‘C’ BENCH
Before: SHRI B R BASKARAN, & SHRI SUNIL KUMAR SINGH
आदेश / O R D E R PER SUNIL KUMAR SINGH (J.M): 1. These two appeals have been preferred against the impugned orders each dated 04.06.2024 passed in Appeal nos. CIT(A)26, Mumbai/10011/2019-20 and CIT(A)26, Mumbai/10010/2019-20 respectively by the Ld. Commissioner of Income–tax(Appeals)/National Faceless Appeal Centre (NFAC) [hereinafter referred to as the “CIT(A)”] & 3869/Mum/2024 Pankaj Sabharwal u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as "Act"] for the Assessment Years [A.Y.] 2011-12 and 2010-11 respectively, wherein learned CIT(A) has partly allowed assessee’s appeals with direction to learned assessing officer to recalculate the penalty only u/s. 271(1)(c) of the Act on restricted addition of Rs. 1,47,521/- and Rs. 74,005/- respectively.
3869/Mum/2024 have been filed by the Revenue on common grounds against the impugned orders each dated 04.06.2024, hence for the sake of brevity, both the appeals are being decided by a common order.
At the very outset, we notice that the total tax effect in both the appeals is shown to be of Rs. 4,25,700/- and Rs. 2,40,110/- respectively, CBDT circulated No. 03/2018 dated 11.07.2018 r/w CBDT circular No. 17/2019 dated 08.08.2019 directs that no appeal shall be filed before the Tribunal where the tax effect is 50,00,000/- CBDT has further directed that the circular letter shall apply retrospectively. The tax effect under instant appeal is far below the monetary limits given in these circulars. In such circumstances, both the appeals stand dismissed as infructuous.