INCOME TAX OFFICER, INTERNATIONAL TAXATION, WARD vs. HARENDRA DE SILVA, OOTACAMUND

Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2020-21 arises out of the order of Learned Commissioner of Income Tax (Appeals), Chennai-16 [hereinafter “CIT(A)”] dated 27.03.2024.

It was stated before us that the tax effect involved in the above appeal is Rs. 57,36,999/- which is less than Rs. 60 lakhs. The Hon’ble Finance Minister in budge speech has announced to raise the limit for filing appeal before ITAT to Rs.60 Lakhs with an object of the reducing the tax litigation. Subsequently, the CBDT vide Circular No.09 of 2024 dated 17.09.2024 has increased the monetary limit for filing the appeal by the Revenue before the ITAT to Rs. 60 Lakhs. In the said circular, it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 60 lakhs appeals should not be filed. Thus, taking note of CBDT Circular No. 09 of 2024 dated 17.09.2024 and considering the fact that the tax effect in the instant appeal is less than Rs. 60 lakhs, the present appeal deserves to be dismissed as withdrawn / not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so advised.

In the result, the appeal filed by the Revenue is dismissed.