2024 (8) TMI 569 - HC - Income Tax

Maintainability of appeal before the High Courts - low tax effect - since none of the exceptions provided in Clause 3.1 of the aforesaid circular are applicable, this appeal u/s 260A cannot be filed by the Revenue - order passed by the Tribunal quashing an order u/s 263 of the Act was not appealable - HELD THAT - Upon a careful perusal of the relevant clauses of the aforesaid circular, it appears that where the tax liability is not quantifiable or is not involved, in such cases the order passed u/s 263 of the Act would fall under the exception provided in Clause 3.1(f). In the present case, such is not the case and the entire issue is with regard to the tax, and quantification of the same has also been made by the AO. As the quantum involved is below Rs. 1 crore, in our view, the appeal is covered by the said circular and is not maintainable before this Court. The appeal filed by the revenue is not maintainable and the same is, accordingly, dismissed.

Summary

The High Court of Allahabad dismissed an appeal under Section 260A of the Income Tax Act, 1961 as the tax liability was quantified below Rs. 1 crore, falling under an exception in Circular No.5/2024. The order passed by the Tribunal quashing an order under Section 263 of the Act was not appealable. The appeal filed by the revenue was not maintainable and was dismissed.