The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) dismissed the Revenue’s appeal, noting that the tax effect of ₹54.04 lakh was below the ₹60 lakh threshold set by Central Board of Direct Taxes ( CBDT ) Circular No. 9/2024, dated 17.09.2024.
The Revenue-appellant, challenged the order dated 17.05.2023 for the assessment year 2016-17 passed by CIT(A), in proceedings under section 143(3)/147 of the Income-tax Act, 1961.In this case Naresh Kumar Garg,respondent-assessee, did not appear despite two calls, so the proceedings were conducted ex-parte.
The Departmental Representative confirmed that the total tax effect in Revenue’s Form 36 was Rs. 54,04,476/-, which was below the Rs. 60 lakh threshold set by CBDT Circular No. 9/2024, dated 17.09.2024. It also fairly acknowledged that the CBDT’s tax effect circular applied to all pending appeals.
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Read More: ITAT Dismisses Revenue’s Appeal as Tax Effect Falls Below Rs. 60 Lakhs, in Accordance with CBDT
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/-.
Read More: ITAT Dismisses Revenue’s Appeal Due to Low Tax Effect Under CBDT Circular
The two member bench comprising Satbeer Singh Godara ( Judicial Member ) and M.Balaganesh ( Accountant Member ) dismissed the Revenue’s appeal on this ground, subject to all just exceptions.
In short,the appeal filed by the revenue was dismissed.
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