What did the Tribunal hold?

The Tribunal held that the appeal filed by the Revenue was not maintainable as the tax effect was below the monetary limit prescribed by the CBDT circular. The appeal was dismissed on this ground.

The Revenue filed an appeal before the ITAT against the order of the CIT(A) for Assessment Year 2018-19. The tax effect involved in the appeal was Rs. 3,64,200/-.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal before the ITAT due to a low tax effect, as per CBDT guidelines.

ITO vs Esha Grewal, Patiala | ITAT Chandigarh 2024

आदेश/Order

Per A.D. Jain, Vice President:

This is assessee’s appeal against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 28.07.2023, for the Assessment Year 2018-19.

563-Chd-2023-– Esha Goyal, Patiala 2

It is noted that the tax effect involved in the present appeal is Rs. 3,64,200/-. Accordingly, in terms of the CBDT Circular dated 08.08.2019 wherein the Department has specified the monetary limit for an appeal to be filed by the Revenue before the ITAT as Rs. 50 lacs, the appeal so filed by the Revenue is not maintainable.

In view of the above facts and circumstances, the present appeal filed by the Department is dismissed due to low tax effect with a liberty to seek recall in case the matter falls under any of the exceptions so carved out in the aforesaid circular.

It is, however, clarified that the dismissal of the above appeal shall not be taken to be affirmation of the order of the CIT(A) on merits. The legal issue raised by the Revenue is being left open to be adjudicated in an appropriate case.

In the result the appeal of the Revenue is dismissed.

Order pronounced on 13.03.2024.

INCOME TAX OFFICER, WAR-4, PATIALA, PATIALA vs. ESHA GREWAL, PATIALA

What did the Tribunal hold?

What were the facts?

What were the issues?

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