ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, KURNOOL vs. SURESH CONSTRUCTIONS, GUNTAKAL

We have heard the learned DR appeared on behalf of the Revenue. It is found that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 09 of 2024, dated 17/09/2024 with retrospective effect, revising the monetary limit to Rs.60,00,000/- for not filing appeals before the Tribunal. It is further found that as the tax effect involved in the instant appeal is less than Rs.60,00,000/-, the extant appeal is not maintainable. The learned DR although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.60,00,000/-.

Going by the prescription of the aforenoted Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.60,00,000/-. We are, therefore, of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this case is admittedly less than the prescribed limit, i.e., Rs. 60,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeal without going into merits of the case.

In the result, the appeal of the Revenue stands dismissed.