The Chennai Bench of Income Tax Appellate Tribunal ( ITAT ) dismissed the Revenue’s appeal against the Madras Cricket Club,the assessee for the Assessment Year (AY) 2009-10, citing a tax effect below ₹60 lakhs in accordance with Central Board of Direct Taxes ( CBDT ) Circular No. 09 of 2024.
The Revenue-Appellant filed an appeal regarding the AY 2009-10 against the Madras Cricket Club, Respondent-Assessee, stemming from an order issued by the Commissioner of Income Tax (CIT(A)) dated February 22, 2017.
This appeal arose after the Assessing Officer(AO) made an addition of ₹1,91,36,486 related to an entrance fee during the assessment process. The assessee contested this addition, leading to an appeal before the CIT(A), who ruled in favor of the assessee.
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There was a delay of 175 days in filing the appeal by the Revenue, which prompted the tribunal to consider a condonation petition submitted by the Revenue. Upon review, the tribunal found sufficient cause for the delay and thus condoned it, allowing the Revenue to proceed with its appeal. The main focus of the appeal was the substantial addition made by the AO, which the assessee had successfully challenged before the CIT(A).
During the proceedings, the Authorized Representative (AR) for the assessee pointed out that the tax effect reported by the AO amounted to ₹57,40,945. This figure was notably below the newly established threshold of ₹60 lakhs set by the CBDT Circular No. 09 of 2024. This circular specifically advised that appeals involving a tax effect below this amount should not be filed by the Revenue. The Departmental Representative (DR) acknowledged this fact and did not contest the reported tax effect.
The two member bench comprising Mahavir Singh(Vice President) and Jagadish(Accountant Member) after hearing the rival submissions and considering the relevant materials on record, the tribunal concluded that the tax effect involved in the Revenue’s appeal was indeed less than ₹60 lakhs.
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Therefore, in alignment with the guidelines outlined in the CBDT circular, the tribunal dismissed the appeal as not maintainable. It made it clear that the issues raised in the appeal could still be examined in appropriate future proceedings if they arose.
The tribunal also indicated that if the appeal fell under any exceptions specified in the circular, the Revenue could apply for recalling the order if deemed necessary. Ultimately, the appeal filed by the Revenue was dismissed.
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