DCIT Vs Mangalvani Exports Pvt. Ltd (ITAT Kolkata)
Income Tax Appellate Tribunal (ITAT), Kolkata Bench, dismissed the appeal filed by the Deputy Commissioner of Income Tax (DCIT) against Mangalvani Exports Pvt. Ltd. for the Assessment Year 2019-20. The primary issue was the maintainability of the Revenue’s appeal based on the monetary limit prescribed by the Central Board of Direct Taxes (CBDT). The assessee’s counsel contended that the appeal must be dismissed because the tax effect involved was below ₹60 lakh, which is the current prescribed monetary threshold for filing appeals before the ITAT. This limit was updated by the CBDT vide Circular No. 09/2024 dated 17/09/2024, which enhanced the limit from the previous ₹50 lakh. The Revenue’s representative acknowledged that the tax effect was indeed below the prescribed limit. The ITAT confirmed that the appeal did not fall under any of the exceptions specified in the CBDT Circulars. Following the mandatory guidelines set by the CBDT, the Tribunal held that the Revenue’s appeal was not maintainable and was consequently dismissed due to low tax effect. The corresponding cross-objection filed by the assessee was also dismissed as it became infructuous upon the dismissal of the Revenue’s main appeal. This decision reaffirms the binding nature of the CBDT Circulars in governing departmental litigation policy.
