ITO Vs Kamlapati Properties Pvt. Ltd (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata dismissed the Revenue’s appeal in the case of ITO vs. Kamlapati Properties Pvt. Ltd. due to the tax effect being below the prescribed threshold limit set by the Central Board of Direct Taxes (CBDT). The appeal had been filed against an order passed by the National Faceless Appeal Centre (CIT(A)) on 21st March 2024. The counsel for the assessee pointed out that the CBDT had issued Circular No. 9/2024 on 17th September 2024, which revised the monetary limits for filing appeals before the Income Tax Appellate Tribunal (ITAT), High Courts, and Supreme Court. According to the circular, the appeal threshold for filing before the ITAT is Rs. 60,00,000, Rs. 2,00,00,000 before High Courts, and Rs. 5,00,00,000 before the Supreme Court.
In this case, the tax effect was below Rs. 60,00,000, which is the limit for filing appeals before the ITAT. As a result, the tribunal ruled that the Revenue’s appeal was filed in violation of the CBDT’s policy decision. Therefore, the appeal was dismissed in limine, meaning without further proceedings. However, the tribunal mentioned that if the Revenue later finds that the tax effect exceeds the Rs. 60,00,000 limit or if the appeal becomes maintainable for other reasons, they are free to apply for recalling the order. This decision reflects the government’s intent to reduce unnecessary litigation by establishing monetary thresholds for appeals in tax cases.
