INCOME-TAX OFFICER - 2(2), BAREILLY, BAREILLY vs. SAHAKARI GANNA VIKAS SAMITI LIMITED FARIDPUR, BAREILLY

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ITA 334/LKW/2024Status: HeardITAT Lucknow26 November 2024AY 2018-19Bench: SHRI. SUDHANSHU SRIVASTAVA (Judicial Member), SHRI ANADEE NATH MISSHRA (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Department's appeal was not maintainable as the tax effect was below the revised monetary limit of Rs. 60 lakhs set by CBDT Circular No. 09/2024. Therefore, the appeal was dismissed as infructuous.

What were the facts?

The Department appealed an order allowing a deduction under Section 80P. The assessee claimed a deduction of Rs. 1,67,81,423. The tax effect on the appeal was Rs. 58,04,254.

What were the issues?

Whether the Department's appeal is maintainable given the tax effect and the prevailing monetary limits for filing appeals before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI ANADEE NATH MISSHRA

For Appellant: Shri Sanjeev Krishna Sharma, D.R
For Respondent: Shri Shubham Rastogi, C.A

This appeal has been preferred by the Department against the order dated 02.01.2024 passed by the National Faceless Appeal Centre (NFAC) for Assessment Year 2018-19.

2.

At the outset, the ld. authorized representative for the assessee (Ld. A.R.) submitted that the addition made by the Assessing Officer (AO) was of Rs.1,67,81,423/-, disallowing the deduction claimed by the assessee under section 80P of the Income Tax Act, 1961 (hereinafter called “the Act’) against the Nil income returned by the assessee. He further submitted that the NFAC, vide impugned order, held that the entire deduction Page 2 of 3 claimed by the assessee was eligible. The Ld. A.R. further submitted that the tax effect on the issue under appeal is Rs.58,04,254/- and, that vide CBDT Circular No.09/2024 dated 17.09.2024, the CBDT has revised the fiscal limits for the Income Tax Department for filing of appeals, increasing the fiscal limits as compared to earlier Circular No. 05/2024 dated 15.03.2024 and that now the monetary limit for filing the appeal before the Tribunal as per CBDT Circular No.09/2024 dated 17.09.2024 is Rs.60 lakhs. Therefore, the present appeal filed by the Department is not maintainable in view of the aforesaid CBDT Circular No.09/2024 dated 17.09.2024 and, therefore, the appeal of the Department is liable to be dismissed.

3.

The ld. Sr. D.R. fairly accepted that the averment of the ld. authorized representative for the assessee regarding the tax effect was correct and, therefore, the present Departmental Appeal would not survive in view of the monetary limit prescribed by the CBDT for filing of appeals by the Department before the ITAT, which is presently at Rs.60.00 lakhs. He, however, submitted that the Department reserves its right to be heard on merits should the captioned appeal comes to be re-instated at a future date.

4.

Having gone through the records and in view of the fact that the tax effect in the captioned Departmental Page 3 of 3 Appeal is less then Rs.60.00 lakhs, we are of the considered view that the Departmental Appeal becomes infructuous and is, therefore, liable to be dismissed.

5.

In the final result, the Appeal of the Department stands dismissed. Order pronounced in the open Court on 26/11/2024.

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