The Kolkata Bench of Income Tax Appellate Tribunal ( ITAT ) dismissed the revenue’s appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], stating that the tax effect in this case was below the revised threshold limit of Rs. 60,00,000/- as per Central Board of Direct Taxes ( CBDT ) Circular No. 9/2024.
The revenue-appellant challenged the order passed by CIT(A), dated 21.03.2024, passed u/s 250 of the Act. In this case,Kamlapati Properties Pvt. Ltd,respondent-assessee, referred to CBDT Circular No. 9/2024 dated 17.09.2024, which increased the monetary limits for filing appeals by the Department to reduce litigation.
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The new limits were Rs. 60,00,000/- for the Appellate Tribunal, Rs. 2,00,00,000/- for the High Court, and Rs. 5,00,00,000/- for the Supreme Court. In this case, the tax effect was less than Rs. 60,00,000/-.
The two member bench comprising Sonjoy Sarma ( Judicial Member ) and Sanjay Awasthi ( Accountant Member ) observed that the appeal was filed by the revenue on 29.07.2024. Given that the tax effect fell within the monetary limit for filing appeals before the Tribunal, and in accordance with the CBDT Circular (supra), the revenue should not have pursued this appeal.
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Consequently, the appellate tribunal concluded that the Department’s appeal against the impugned order of the CIT(A) went against the Department’s policy decision and, therefore, dismissed the appeal in limine.
The bench also noted that, as a precaution, if the Revenue later finds that the tax effect in the appeal exceeds Rs. 60 lakhs, or if the appeal is considered maintainable despite the low tax effect, the Revenue may move for the recall of this order.
In short,the appeal filed by the revenue was dismissed.
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