ITO(EXEMPTION), AGRA, AGRA vs. MUNNA LAL DAU DAYAL AND SONS CHARITABLE TRUST, MATHURA
Facts
The Revenue filed an appeal against an appellate order concerning the assessment year 2018-19. The appeal arose from an intimation issued by the Centralized Processing Center. The tax effect in this appeal was stated to be Rs. 2,02,602/-, which is below the monetary limit prescribed for filing appeals.
Held
The Tribunal held that the appeal filed by the Revenue was not maintainable because the tax effect was below the monetary limit set by the CBDT circulars. The exception for challenging constitutional validity was not applicable in this case, as the issue was about the denial of exemption due to non-filing of an audit report.
Key Issues
Maintainability of the appeal by the Revenue due to low tax effect, considering CBDT circulars and their exceptions.
Sections Cited
143(1), 11, 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA (SMC
Before: SHRI RAMIT KOCHAR
This appeal in ITA No. 158/Agr/2024 for the assessment year
2018-19filed by Revenue has arisen from the appellate order dated
29.02.2024 (DIN& Order No. ITBA/APL/S/250/2023-24/
1061785190(1)) passed by learned Commissioner of Income-
tax(Appeals),Addl/JCIT(A)-1, Bengaluru,which in turnhas arisen from
the intimation dated 21.05.2019 issued by Centralized Processing
Center, Bangalore u/s 143(1) of the Income-tax Act, 1961.
2 ITA No. 158/Agr/2024
At the outset, it is observed that tax-effect in this appeal filed by
the Revenue with ITAT, Agra Bench, Agra is 2,02,602/- as stated by
the Revenue itself in the Form No. 36 filed with ITAT. None appeared
on behalf of the assessee when this appeal was called for hearing
before the SMC Bench. The ld. Sr. DR was asked as to how this
appeal filed by the Revenue is maintainable as tax-effect is lower
than Rs. 60 lacs(earlier Rs. 50 lacs) required for maintainability of
Revenue’s appeal before ITAT. The ld. Sr. DR sought liberty to file
written reply . which was granted by the Bench. The ld. Sr DR has
now filed reply vide F.No.
CIT(DR)/ITAT/MunnaLalDauDayal/Agra/2024-25/197 dated
28.01.2025 , wherein report of ITO(Exemption) , Agra is enclosed.
The same is placed on record. This appeal was filed by Revenue and
authorisation filed along with appeal dated 05.04.2024 signed by ld.
CIT(Exemption), Lucknow, states that this appeal filed by Revenue is
maintainable keeping in view Circular No. 17/2019 dated 08.08.2019
read with exception as laid down in clause 10(a).The ITO(E), Agra
has stated in letter dated 17.01.2025 to CIT(E) , Lucknow(copy
placed on record), that this appeal is maintainable keeping in view
3 ITA No. 158/Agr/2024
exception 10(a) of Circular No. 3/2018 dated 11.07.2018 and its
subsequent amendment dated 20.08.2018 as also read with Circular
No. 17/2019 dated 08.08.2019.
After hearing ld. Sr. DR and perusing the material on record, I
dismiss this appeal in ITA no. 158/Agr/2024 for assessment year
2018-19filed by the Revenue as not maintainable keeping in view low
tax-effect being below the monetary limit prescribed by Circular No.
03/2018 dated 11.07.2018 and its amendment dated 20.08.2018 and
Circular No. 17/2019 dated 08.08.2019, also keeping in view the
latest CBDT circular no. 5/2024 dated
15.03.2024(F.No.279/Misc.142/2007-ITJ(Pt.)). The tax-effect in this
appeal is Rs. 2,02,602/- as stated by Revenue in Form No. 36 which
is admittedly below the monetary limit viz. presently Rs. 60
lacs(earlier Rs. 50 lacs) for filing appeal with ITAT by Revenue. The
department is relying on exception 10(a) which deals with challenge
to constitutional validity of the provisions of an Act or Rule . In the
present case , I donot find that there was any challenge to the
constitutional validity to the provisions of the Act or Rule. It was a
case where CPC denied the exemption to the assessee u/s 11 and
4 ITA No. 158/Agr/2024
12 of the 1961 Act while framing assessment vide intimation u/s
143(1) on the grounds that audit report in Form No. 10B was not filed
by the assessee along with return of income, while ld. CIT(A) has
granted relief that the assessee duly filed audit report in Form No.
10B issued by chartered accountant on 13.09.2018 which was within
extended due date for filing of return of income viz. 31.10.2018. The
assessee was duly registered u/s 12A of the 1961 Act. In any case,
there was no constitutional challenge to the vires of the Act or the
Rules, as is sought to be made out by Revenue. I have also gone
through aforesaid circulars dealing with monetary limits for filing
appeal by Revenue, and I donot find that this appeal is covered by
exceptions to the said circulars. Thus, I hold that this appeal filed by
the Revenue is not maintainable and is liable to be dismissed ,
keeping in view the aforesaid CBDT circulars. I clarify that I have not
commented on the merits of the issues arising in this appeal. I also
give liberty to Revenue to file MA for recall of this order if at any stage
it is found that this appeal was not covered by CBDT circulars
governing non filing of appeal by Revenue keeping in view low tax
5 ITA No. 158/Agr/2024
effect. Thus, the appeal filed by Revenue is dismissed. I order
accordingly.
In the result, appeal filed by the Revenue is dismissed.
Order pronounced in the open court on 30.01.2025
Sd/- (RAMIT KOCHAR) ACCOUNTANT MEMBER
Dated:…..30.01.2025
