The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) dismissed the Revenue’s appeal against Coforge Ltd, as the tax effect of the disputed issues raised did not exceed the prescribed monetary limit of Rs. 60 lakh, in accordance with the Central Board of Direct Taxes ( CBDT ) Circular No. 09/2024.
The Revenue-appellant had filed an appeal against the order of the Commissioner of Income Tax (Appeals),CIT(A), in the case of Coforge Ltd., respondent-assessee, with a tax effect not exceeding Rs. 60 lakhs.
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Upon reviewing the case, it was noted that the tax effect of the disputed issues raised by the Revenue did not exceed the threshold of Rs. 60 lakhs, as prescribed by the Central Board of Direct Taxes (CBDT) in Circular No. 09/2024 dated 17.09.2024, rendering the appeal not maintainable.
According to CBDT Circular, appeals filed by the Revenue are only maintainable if the tax effect exceeds the prescribed limit of Rs. 60 lakhs. Since the tax effect in this case did not exceed Rs. 60 lakhs, the tribunal held that the Revenue’s appeal was not maintainable.
CBDT Circular, sets a revised monetary limit of Rs 60 lakh for income tax appeals before the ITAT, effectively dismissing appeals with tax effects below this threshold, such as the Revenue’s appeal against Coforge Ltd., which did not exceed Rs 60 lakh.
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The appeal filed by the Revenue against Coforge Ltd. was dismissed due to the tax effect not exceeding Rs. 60 lakhs, as per CBDT Circular No. 09/2024. However, the Revenue was allowed to seek restoration of its appeal if it could demonstrate that the circular’s provisions did not apply, providing an opportunity to revisit the case.
The two-member bench comprising Shri Pradip Kumar Kedia (Accountant Member) and Shri Anubhav Sharma (Judicial Member) clarified that the dismissal of the Revenue’s appeal did not amount to an endorsement of the CIT(A)’s order on the merits of the case, but rather was a consequence of the tax effect not exceeding the prescribed limit of Rs. 60 lakhs as per CBDT Circular No. 09/2024.
The Revenue’s grounds of appeal, including the deletion of adjustments and disallowances under sections 92B and 14A, were left unadjudicated, as the appeal was dismissed solely due to the tax effect not exceeding Rs. 60 lakhs, as per CBDT Circular No. 09/2024, leaving open the possibility for future adjudication if the necessary criteria are met.
Ultimately,the appeal filed by the revenue was dismissed.
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