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2024 (11) TMI 560

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..... d in the CBDT Instruction (supra). Then Revenue will be at liberty to file Miscellaneous Application for revival of these appeals. - Shri Rajpal Yadav, Vice President And Shri Manish Borad, Accountant Member For the Assessee : Shri Akkal Dudhewala, AR For the Department : Shri Subhendu Datta, CIT DR ORDER PER DR. MANISH BORAD, AM: This appeal at the instance of the Revenue is directed against the order of Commissioner of Income-tax (Appeals)-27 [ld. CIT (A)] dated 03.02.2024, which is arising out of the assessment order under Section 153 read with section 143(3) of the Income-tax Act, 1961 (the Act) dated 04.07.2024. 02. At the outset, ld. Counsel for the assessee submitted that the appeal of the Revenue deserves to be dismissed on account of low tax effect in view of the CBDT Circular issued from time to time and also submitted that the case of the assessee does not fall under any of the exceptions provided in the CBDT Circular no. 5/2024 dated 15th March, 2024. 03. On the other hand, the ld. DR could not controvert the contention laid down by the assessee. 04. We have heard the rival contentions and perused the records placed before us. We observe that Central Board of Direct T .....

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..... nt in the relevant case and the trial is pending in any Court or conviction order has been passed and the same has not been compounded, or e. Where strictures/adverse comments have been passed and/or cost has been levied against the Department of Revenue, CBDT or their officers, or f. Where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under sections 10(23C), 12A/ 12AA/12AB of the Act, order passed u/s 263 of the Act etc. The reference to cases involving sections referred here, where it is not possible to quantify tax effect or tax effect is not involved, is for the purpose of illustration only. g. Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/undisclosed foreign bank account, or h. Cases involving organized tax evasion including cases of bogus capital gain/loss through penny stocks and cases of accommodation entries, or i. Where mandated by a Court's directions, or j. Writ matters, or k. Matters related to wealth tax, fringe benefit tax, equalization levy and any matter other than the Income Tax Act, or l. In respect of litigation arising out of dispu .....

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..... o be filed (hereinafter referred to as 'disputed issues'). Further, 'tax effect' shall be tax including applicable surcharge and cess. However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute. In case the chargeability of interest is the issue under dispute, the amount of interest shall be the tax effect. In cases where returned loss is reduced or assessed as income, the tax effect would include notional tax on disputed additions. In case of penalty orders, the tax effect will mean quantum of penalty deleted or reduced in the order to be appealed against. 5.2 Further, where income is computed under the provisions of section 115JB or section 115JC, for the purposes of determination of 'tax effect', tax on the total income assessed shall be computed as per the following formula- (A-B) + (C-D) where, A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of the dis .....

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..... cases, there will be no presumption that the Income Tax Department has acquiesced in the decision on the disputed issues. The Income Tax Department shall not be precluded from filing an appeal against the disputed issues in the case of the same assessee for any other assessment year, or in the case of any other assessee for the same or any other assessment year, if the tax effect exceeds the specified monetary limits. 7. In the past, a number of instances have come to the notice of the Board, whereby an assessee has claimed relief from the Tribunal or the Court only on the ground that the Department has implicitly accepted the decision of the Tribunal or Court in the case of the assessee for any other assessment year or in the case of any other assessee for the same or any other assessment year, by not filing an appeal on the same disputed issues. The Departmental representatives/ counsels must make every effort to bring to the notice of the Tribunal or the Court that the appeal in such cases was not filed or not admitted only for the reason of the tax effect being less than the specified monetary limit and, therefore, no inference should be drawn that the decisions rendered there .....

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..... P/ appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular. 2. As a step towards management of litigation, it has been decided by the Board to revise the monetary limits for filing of appeals in Income-tax cases as stated in Para 4.1 of the aforementioned Circular as follows: S. No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1. Before Appellate Tribunal 60 lakh 2. Before High Court 2 crore 3. Before Supreme Court 5 crore 06. We have gone through the CBDT circular (supra), and find that in the instant case the tax effect by virtue of relief given by the first appellate authority is less than Rs. 60,00,000/-. As per CBDT Instruction bearing No. 9 of 2024 issued on 17th September, 2024, CBDT has directed its subordinate authorities not to challenge the order of ld. CIT(Appeals) before Tribunal if tax effect by virtue of relief given by the ld. CIT(Appeals) is less than Rs. 60,00,000/- and such order could only be challenged if it comes within exceptions provided in the Instruction and if these cases do not fall in any of the exceptions then such appeals are not maintainabl .....

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