AI Structured Summary
Not yet generated for this judgment
Judgment
PERSHRI ANUBHAV SHARMA, JUDICIAL MEMBER:
This appeal is preferred by the revenue against the order dated 16.03.2026 of the Ld. Commissioner of Income Tax (Appeal)-3, Noida (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No. CIT (A), Noida-3/10063/2021-22arising out of the assessment order dated 23.03.2024 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by DCIT, Central Circle – 2, Noida for AY: 2022-23.
The Ld. Counsel for the assessee submitted that the present appeal involves low tax effect being Rs.49,30,779/- which is below the monetary limit of Rs.60 Lacs. The CBDT vide Circular No.09/2024 dated 17.09.2024 has revised the monetary limit for filing the appeals before the Tribunal to Rs.60 Lacs and the said Circular would be applicable to all pending appeals. In such circumstances, the present appeal filed by the Revenue in case of low tax effect is not maintainable.
We find that for AY involved the assessee returned loss of Rs. 23,49,08,357/- which stood reduced to Rs. 21,71,84,510 upon disallowance of Rs. 1,77,23,865 made by assessee and same is deleted by ld. CIT(A) which is under dispute here in appeal. Ld. Counsel has pointed out that rate of 25% is applicable and not 30% as applied, because in AY 2019-20 turnover of assessee did not exceed Rs. 400/ Cr. Thus tax demand is reduced to Rs. 44,30,966 with cess same also same would be Rs. 49,30,779, which is below Rs. 60 lacs, while department has filed appeal on calculation of ax effect of Rs. 60,75,845/-.
We clarify here that the Revenue shall be at liberty to approach the Tribunal for re-institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para-3.1 and 3.2 of the Circular dated 17.09.2024.
In the light of aforesaid by applying the CBDT Circular dated 17.09.2024, the captioned appeal involves Rs.49,30,779/- of the Revenue is dismissed as not maintainable.
In the final result, the appeal of the Revenue stands dismissed.