ITO Vs M.P. Police Sakh Sahakari Sanstha Maryadit (ITAT Indore)
Income Tax – Appeals – Low Tax Effect – Maintainability – Circular No. 5/2024 Superseding Earlier Circulars – Exception for Audit Objections Removed – Appeals Dismissed
In a significant ruling, the Indore Bench of the Income Tax Appellate Tribunal (ITAT) dismissed the appeals filed by the Income Tax Officer (ITO) against M.P. Police Sakh Sahakari Sanstha Maryadit. The appeals, which pertained to Assessment Years 2014-15 and 2015-16, were found to be non-maintainable due to low tax effect. The Tribunal’s decision was influenced by the latest CBDT Circular No. 5/2024, which superseded earlier circulars and eliminated the exception for audit objections.
Arguments of the Assessee
The assessee argued that the appeals filed by the revenue are not maintainable due to the low tax effect.
Arguments of The Revenue:-
The Departmental Representative (DR) submitted comments from the Assessing Officer (A.O.), asserting that the appeals, despite having a tax effect below the prescribed monetary limit, fall under the exception in paragraph 10(c) of Circular No. 3/2018 and 17/2019, due to tax audit objections accepted by the A.O. upon reopening the assessment. The DR contended therefore these cases should be decided on merits.
Arguments of the Assessee in Rejoinder:
