CBDT Threshold of ₹60 Lakh Leads to Dismissal of Revenue Appeal by ITAT [Read Order]
The Tribunal placed reliance on CBDT Circular No. 09/2024 which prescribed the revised monetary threshold of Rs. 60 lakh for filing appeals before the Income Tax Appellate Tribunal.
Revenue - appeal - Taxscan
Revenue - appeal - Taxscan
The bench of the Income Tax Appellate Tribunal, Kolkata, dismissed the Revenue’s appeal on the ground of low tax effect and consequently rendered the cross-objection filed by the assessee infructuous in a case pertaining to income tax assessment for the Assessment Year 2019-20.
The case was filed by the Deputy Commissioner of Income Tax (DCIT), Kolkata against Mangalvani Exports Pvt. Ltd. The dispute arose from the order dated 18 January 2024 passed by the Commissioner of Income Tax (Appeals) [CIT(A)]. The Revenue’s appeal challenged the relief granted to the assessee, while the assessee filed a cross-objection in response.
During the appellate proceedings, it was noted that the total tax effect involved in the appeal was below ₹60 lakh, the monetary threshold prescribed by the Central Board of Direct Taxes (CBDT) for filing appeals before the Tribunal, as per Circular No. 09/2024 dated 17 September 2024.
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The assessee, Mangalvani Exports Pvt. Ltd., represented by S. Jhajharia, argued that in accordance with the CBDT’s latest Circular No. 09/2024, appeals involving tax effect below Rs. 60 lakh are not maintainable before the Tribunal. It was further submitted that the CBDT had earlier fixed the limit at Rs. 50 lakh under Circular No. 17/2019 dated 8 August 2019, which was later enhanced to Rs. 60 lakh, and therefore, the present appeal should be dismissed as not maintainable.
The Bench comprising Sonjoy Sarma, Judicial Member and Rakesh Mishra, Accountant Member held that the tax effect in the present case was below Rs. 60 lakh, the monetary limit specified by the CBDT for filing appeals before the Tribunal. The Bench observed that the Revenue’s appeal did not fall under any of the exceptions provided in the CBDT circulars.
Consequently, the Bench ruled that the appeal filed by the Revenue was not maintainable and therefore liable to be dismissed.
As a corollary, the cross-objection filed by the assessee was held to be infructuous and dismissed accordingly.
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