The Revenue filed appeals before the ITAT challenging the orders of the CIT(A). The assessee contended that the tax effect of the disputed amount was below the revised monetary limit for appeals before the Tribunal as per CBDT circulars.

What were the issues?

The primary issue was whether the Revenue's appeals were maintainable before the Tribunal given the tax effect was below the prescribed monetary limit as per CBDT circulars.

ACIT vs Unique Realities Builders &… | ITAT Nagpur 2024

Q: What did the Tribunal hold?

The Tribunal held that the tax effect in the appeals was below the revised monetary limit of ₹50 lakh as per CBDT Circulars. Therefore, the appeals filed by the Revenue were not maintainable.

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER

For Appellant: Shri Abhishek Kumar

For Respondent: Shri Kailash C. Kanojiya

Date of Hearing – 20/08/2024 Date of Order – 02/09/2024

O R D E R PER V. DURGA RAO, J.M.

These appeals have been filed by the Revenue challenging the impugned orders of even date 14/11/2022, passed by the learned Commissioner of Income Tax (Appeals)–3, Nagpur, [“learned CIT(A)”], for the assessment year 2017–18 and 2018–19.

At the outset, the leaned Counsel appearing for the assessee submitted that the tax effect on the amount disputed by the Revenue is below the revised monetary limit of ` 50 lakh applicable to appeals before the Tribunal, as per CBDT Circular no.17 of 2019, dt. 08/08/2019. Further, he submitted that none of the exceptions provided in CBDT Circular no.3 of 2018, dt. 11/07/2018 r/w circular F.no.279/Misc./142/2007–ITJ–(Pt) dt. 20/08/2018,

Unique Realities Builders & Developers ITA no.21–22/Nag./2023 would apply to Revenue’s appeal. Thus, the learned Counsel for the assessee submitted that the Revenue’s appeals being covered under the aforesaid Circulars are not maintainable.

The learned Departmental Representative agreed that the tax effect on the amount disputed by the Revenue is below the monetary limit of ` 50 lakh for both the years under consideration.

Having heard the arguments of rival parties, perused the material available on record and gone through the orders of the authorities below, we are of the view that the tax effect on the amount disputed by the Revenue in the present appeals are below the revised monetary limit of ` 50 lakh as per CBDT Circular no.17/2019, dated 08/08/2019, r/w CBDT Circular no.3/2018, dated 11/07/2018. It also stands clarified by the CBDT that the revised monetary limit of ` 50 lakh as per the aforesaid CBDT Circulars would also apply to all pending appeals. In view of the aforesaid, Revenue’s appeals deserve to be dismissed. However, the Revenue is given liberty to seek recall of this consolidated order if, at a later point of time, it is found that the appeals fall under any of the exceptions provided in the Circulars referred to above.

In the result, appeals filed by the Revenue are dismissed. Order pronounced in the open Court on 02/09/2024

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), NAGPUR vs. UNIQUE REALITIES BUILDERS & DEVELOPERS, NAGPUR

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