DCIT Vs Krishna Kirpa Computer Industries P. Ltd (ITAT Delhi)
Delhi ITAT dismisses Revenue’s appeal as tax effect is below Rs 60 lakh monetary limit per CBDT circulars. Assessee’s cross objections withdrawn; ITAT Dismisses Revenue Tax Appeal Over Low Tax Effect; Tribunal Rules Appeal Below ₹60 Lakh Limit Not Maintainable.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has dismissed an appeal filed by the Revenue, citing that the tax effect involved was below the monetary limit prescribed for filing appeals before the tribunal.
The appeal was filed by the Deputy Commissioner of Income Tax (DCIT) challenging an order of the Commissioner of Income Tax (Appeals) for the assessment year 2015-16.
During the hearing, counsel for the assessee, Krishna Kirpa Computer Industries P. Ltd., argued that the Revenue’s appeal was not maintainable due to the low tax effect. They presented a copy of the tax computation form provided to the assessee along with the assessment order, which indicated a total tax demand of Rs. 57,09,181/-. This amount, they contended, was less than the monetary limit of Rs. 60 lakhs set by the Central Board of Direct Taxes (CBDT) for the Revenue to file appeals before the ITAT, referencing Income Tax Circular No. 9/2014.
