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Judgment
O R D E R
PER S.RIFAUR RAHMAN,AM:
This appeal is filed by the Revenue against the order passed by the ld.
Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC) dated 03.12.2025for the Assessment Year 2017-18. The assessee has also filed cross objections.
At the outset, ld.AR of the assessee filed the cross objections challenging that the Revenue’s appeal is not maintainable on account of low tax effect. He submitted that the Revenue has computed the tax effect at Rs.1,03,50,950/- in Form No.36 by applying the provisions of section 115BBE at the enhanced rate. He submitted that the provisions of section 115BBE are not applicable to the present case being prospective in nature and applicable only from 01.04.2017. Accordingly, he submitted that the tax effect is required to be recomputed under the normal provisions of the Act. He submitted that when so recomputed, the tax effect works out to Rs.47,41,674/- which is well below the monetary limit of Rs.60 lakhs prescribed under CBDT Circular No.09/2024 dated 17.09.2024 for filing appeals before the ITAT. He further submitted that this issue is no longer res integra and has been consistently decided in favour of the assessee by various Benches of the ITAT wherein it has been held that where the tax effect, after applying the correct rate of tax, falls below the prescribed threshold limit, the Revenue’s appeal is liable to be dismissed in limine as not maintainable. In this regard, he relied on various case laws. In this regard, he placed reliance on various case laws.
However, Ld. Sr. DR did not oppose the aforesaid proposition.
Considered the rival submissions and material available on record. We have gone through the decision of Hon’ble Madras High Court in the case of S.M.I.L.E Microfinance Ltd. (supra) order dated November 19, 2024 and are of the opinion that the tax is to be charged at the normal rates i.e. 30%. We observed that the ld. AR clearly showed that the tax effect is below Rs.60 lakhs. In view of the above position, we noticed that the tax effect in appeal preferred by the Revenue is below Rs.60 lakhs, we deem it proper to dismiss the appeal of the Revenue in the light of the latest Circular No.09/2024 of the CBDT dated 17.09.2024, as not maintainable.
In the result, the appeal of the Revenue is dismissed.
As we have dismissed the appeal of the Revenue, the cross objections filed by the assessee is allowed
To sum up : the appeal filed by the Revenue is dismissed and the cross objections filed by the assessee is allowed.