Tax Effect Less than ₹60 lacs: ITAT Dismisses Revenue Appeal Respecting CBDT Circular [Read Circular]

The New Delhi bench of Income Tax Appellate Tribunal (ITAT) comprising Shamim Yahya (Accountant Member) and Sudhir Pareek (Judicial Member) has dismissed an appeal since the tax effect was less than ₹60 lacs.

The appeal was held to be not admissible in light of the Central Board of Direct Taxes (CBDT) Circular No. 09/2024 dated 17.09.2024. The said circular invited reference to Circular No. 05/2024 dated 15.03.2024 of the CBDT vide which monetary limits for filing Income Tax appeals before tribunals and courts were specified. 

Read more: Low Tax Effect As Per CBDT Circular: Supreme Court Dismisses SLP 

The appeal arose against an order dated 22.09.2023 passed by the Commissioner of Income Tax (Appeals) [CIT (A)] by which the application filed by the revenue/ appellant against order dated 29.06.2021 passed by the Assessing Officer was dismissed.

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Circular No. 09/2024, issued under Section 268A of the Income Tax Act, 1961, enhanced the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal (ITAT), High Courts and Special Leave Petitions/appeals before the Hon’ble Supreme Court. The said circular was issued as a measure to manage litigation and reduce the pendency of cases before tribunals and courts.

The revised monetary limits for filing appeals or Special Leave Petitions (SLPs) in Income Tax matters are as follows:

• Appeals before the Income Tax Appellate Tribunal can be filed only if the tax effect is ₹60 lakh or more.
  
  
• Appeals before the High Court are permitted when the tax effect is ₹2 crore or more.
  
  
• Appeals or SLPs before the Supreme Court can be filed if the tax effect is ₹5 crore or more.

The circular further provides that monetary limits with regard to filing of appeals/SLPs shall be applicable to all cases including those relating to Tax Deducted at Source (TDS)/ Tax Collected at Source (TCS) under the Income Tax Act, 1961 with exceptions as given in para 3.1 and 3.2 of Circular No. 05/2024.

Read more:Tax Effect Less than Threshold Limit Fixed by CBDT: Calcutta HC Dismisses Appeal by Income Tax Department

The circular also provides that an appeal shall not be filed merely because it exceeds the monetary limits and such filing of the appeal must be decided on the merits of the case.

The circular also directs the concerned officers to keep in mind the overall objective of reducing unnecessary litigation and to provide certainty to taxpayers on their Income Tax assessments.

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Hence, in view of the above, the appeal of the assessee was dismissed.

Ms. Jaya Chaudhary, CIT (DR), appeared for the appellant/ revenue and Kundan Wahi appeared for the Respondent, Sahil Kohli. 

To Read the full text of the Order CLICK HERE

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