Case Law Details
ITO Vs Gajadharprasad Nathai Pal (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT) Mumbai dismissed the revenue’s appeal in the case of ITO vs. Gajadharprasad Nathai Pal due to the tax effect being below the monetary limit prescribed by the Central Board of Direct Taxes (CBDT). The appeal was filed against the order dated September 23, 2024, issued by the Commissioner of Income Tax (Appeals) under Section 250 of the Income Tax Act, 1961, for the assessment year 2017-18. The dispute amount in question was ₹79,92,500, but the actual tax effect was determined to be less than ₹60 lakh, the threshold set by the relevant CBDT circular.
During the hearing, the Departmental Representative (DR) failed to provide a valid justification for why the case should fall under any exceptions to the CBDT circular. Consequently, the Tribunal deemed the appeal infructuous and dismissed it. However, ITAT granted the revenue the liberty to seek a reopening of the matter if it could later demonstrate that the case falls under one of the exceptions specified in the CBDT guidelines. The order was pronounced in open court on January 13, 2025.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been preferred against the impugned order dated 23.09.2024 passed in Appeal no. NFAC/2016-17/10301020 by the Ld. Commissioner of Income–tax(Appeals)/ National Faceless Appeal Centre (NFAC) u/s. 250 of the Income-Tax Act, 1961 for the Assessment year [A.Y.] 2017-18, wherein learned CIT(A) has partly allowed assessee’s appeal.
2. At the very outset, we notice that the total amount disputed in this revenue’s appeal is Rs. 79,92,500/-. The tax effect, though shown as Zero in form-36. However, the tax effect shall be less than the monetary limit of Rs. 60,00,000/- prescribed by the relevant CBDT circular. Learned DR could not convince the Tribunal as to how the subject matter falls under any exception of relevant CBDT circular letter. In such circumstances, revenue’s appeal stands dismissed as infructuous. The revenue is however at liberty to get the matter re-opened if it could convince the Tribunal that the subject matter of this appeal falls under any of the exceptions mentioned in the relevant circular letter issued by CBDT.
Order pronounced in open court on 13.01.2025.
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