DCIT CORPORATE CIRCLE 3(1), CHENNAI V. M/S VESTAS TECHNOLOGY R & D CHENNAI P. LTD, CHENNAI KANCHEEPURAM

ITA 1482/CHNY/2025

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The case involves an appeal by the Deputy Commissioner of Income Tax, Corporate Circle 3(1), Chennai against M/s. Vestas Technology R & D Chennai P. Ltd. The appeal was directed against the order passed by the Commissioner of Income Tax (Appeals) \\u2013 16, Chennai for the assessment year 2016-17. The primary contention during the hearing was whether the tax effect in the appeal justified proceeding despite being below the monetary threshold set by the CBDT. The respondent argued that the case did not fall under the exceptions to the monetary limits as specified in the CBDT circular, leading to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772720 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: misc
• Laws Referred To: CBDT Circular No. 09/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. RAJA KUMAR
• Assessee Lawyers: C. SOWNDARYA
• Keywords: Tax effect

Judgement Text

"आयकर अपीलीय अिधकरण, ’A’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी एस.आर. रगुनाथॎ, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri S.R. Raghunatha, Accountant Member आयकर अपील सं./I.T.A. No.1482/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2016-17 The Deputy Commissioner of Income Tax, Corporate Circle 3(1), Chennai. Vs. M/s. Vestas Technology R & D Chennai P. Ltd., Tower 1, 8th Floor, Radial IT Park, Survey no. 141/14A, 200 Feet Radial Road, Zamin Pallavaram, Kanchipuram 600 117. [PAN:AACCV4768P] (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri N. Rajakumar, Addl. CIT ŮȑथŎ की ओर से/Respondent by : Ms. C. Sowndarya, C.A. सुनवाई की तारीख/ Date of hearing : 26.08.2025 घोषणा की तारीख /Date of Pronouncement : 26.08.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the Revenue is directed against the order dated 12.03.2025 passed by the ld. Commissioner of Income Tax (Appeals) – 16, Chennai for the assessment year 2016-17. 2. When the appeal was taken up for hearing, the ld. AR Ms. C. Sowndarya, C.A. submits that the tax effect in the appeal filed by the Revenue is less than the monetary limit of ₹.60,00,000/- fixed by the Printed from counselvise.com I.T.A. No.1482/Chny/25 2 CBDT to file an appeal by the Revenue before the Tribunal as per the CBDT Circular No. 09/2024, dated 17.09.2024. 3. The ld. DR Shri N. Rajakumar, Addl. CIT submits that even though the tax effect in this case is below the monetary limit, further appeal in this case has been preferred as this case fall in the exceptions to the monetary limits specified in para 3.1(a) by relying upon the CBDT. 4. In reply, the ld. AR argued that no provision of the Act or the Rules or notification issued there under has been held to be constitutionally valid in this case and thus, the present case does not fall in the exceptions specified in para 3.1(a) of the above said circular. 5. Having heard both the parties and perused the material available on record, we note that the tax effect in this case is below the monetary limit and we are of the opinion that there is no constitutional validity involved on the issues on hand with regard to the tax effect and the monetary limits. Thus, the Revenue authorities are precluded from filing the appeal before the Tribunal, since the tax effect is less than ₹.60,00,000/- in this appeal. Thus, the appeal filed by the Appellant- Printed from counselvise.com I.T.A. No.1482/Chny/25 3 Revenue is liable to be dismissed as not maintainable. Accordingly, the appeal filed by the Revenue is dismissed. 6. In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 26th August, 2025 at Chennai. Sd/- Sd/- (S.R. RAGHUNATHA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 26.08.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "