ITO Vs Rashi Impex Pvt. Ltd (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, delivered an order on February 11, 2025, dismissing an appeal filed by the Revenue, the Income Tax Officer (ITO), against the assessee, Rashi Impex Pvt. Ltd., for the Assessment Year (AY) 2010-11. The Revenue was challenging an order issued by the Commissioner of Income Tax (Appeals).
Application of CBDT Circular
The core issue decided by the Tribunal was the maintainability of the Revenue’s appeal in light of the Central Board of Direct Taxes (CBDT) Circular No. 9/2024, dated September 17, 2024. This circular was issued as a measure to reduce litigation and revised the monetary limits for the Department to file appeals before various appellate forums.
The Tribunal noted the revised monetary limits:
- Before Appellate Tribunal: ₹60,00,000/-
- Before High Court: ₹2,00,00,000/-
- Before Supreme Court (SLP): ₹5,00,00,000/-
The Holding
The counsel for Rashi Impex Pvt. Ltd. brought to the Tribunal’s attention that the tax effect of the Revenue’s appeal was less than ₹60,00,000/-.
Based on this fact and the mandate of the CBDT Circular, the ITAT concluded that the Revenue should not have preferred the appeal in the first place, as the tax effect fell below the stipulated minimum for filing an appeal before the Tribunal. The appeal, which was filed on October 7, 2024, was deemed contrary to the policy decision of the Department.
