DEPUTY COMMISSIONER OF INCOME TAX, CHENNAI V. KANDASAMY THANGARAJ, KARURU

ITA 2350/CHNY/2024

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax, Central Circle-(1)2, Chennai against Shri Kandasamy Thangaraj concerning the assessment year 2018-19. The appeal arose from the order of the Commissioner of Income Tax (Appeals) - 19, Chennai. The primary legal issue was whether the appeal by the Revenue was maintainable given the tax effect was below the monetary limit set by the recent circular. The Income Tax Appellate Tribunal, Chennai, dismissed the appeal based on the monetary limits prescribed in the circular, emphasizing the need to reduce unnecessary litigation and provide certainty to taxpayers.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47081 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P.K. SENTHIL KUMAR
• Assessee Lawyers: N.V. BALAJI
• Keywords: Tax effect; TDS
• Section: 153C; 268A

Judgement Text

" आयकर अपीलीय अिधकरण, ‘बी’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘B’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0016ी जगदीश , लेखा सद क े सम& BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.2350/Chny/2024 (िनधा\u0005रण वष\u0005 / Assessment Year: 2018-19) Deputy Commissioner of Income Tax, Central Circle-(1)2, Chennai. Vs Shri Kandasamy Thangaraj, 4/166, Pon Nagar, Andan Koil, East Karur-639 002. PAN :ADCPT-1756-B (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Mr. P.K.Senthil Kumar, Addl.CIT \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Mr. N.V.Balaji, Advocate सुनवाईक\bतारीख/Date of hearing : 28.01.2025 घोषणाक\bतारीख /Date of Pronouncement : 08.04.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal is arising out of the order of the Commissioner of Income tax (Appeals) – 19, Chennai [hereinafter referred to as the “CIT(A)”] in DIN and Order No: ITBA/APL/S/250/2024- 25/1066656282(1) dated 12/07/2024. The assessment was framed by the DCIT, Central Circle-2, Trichy (hereinafter referred to as “AO”) for the assessment year 2018-19 u/s. 153C r.w.s 144 r w s 263 of the Income tax Act, 1961 (hereinafter referred to as the “Act”), vide order dated 29.03.2023. 2. At the outset, the Ld AR invited the attention of the Bench to the column No: 10 of the Memo of appeal in Form No:36 filed by the Revenue, in which the tax effect was stated to be Rs.31,98,150/-. He further drew the attention of the Bench the circular of the Board bearing no:9/2024, dated 17-09-2024, wherein it was mentioned that the monetary limit fixed for filing appeal by the Revenue to the 2 ITA No. 2350/Chny/2024 ITAT was revised to Rs.60 lakhs. He submitted that the revenue appeal is, therefore, not maintainable and prayed for its dismissal. 3. The Ld. DR, relied on grounds of appeal filed. However, he could not dispute the fact that the tax effect mentioned in Column No.10 of the memo of appeal filed was less than the amount specified in the circular referred to supra. The text of the Circular No: 9 dated 17-09-2024 is reproduced hereunder: F.No.279/Misc./M-74/2024-IT J Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ******** Circular No. 09/2024 New Delhi, 17th September, 2024 Sub:- Further enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court: amendment to Circular 5 of 2024- Measures for reducing litigation- Reg. Reference is invited to Circular No 5/2024 (F.No.279/Misc.l42/2007- ITJ(Pt.)) dated 15.03.2024 of Central Board of Direct Taxes (the 'Board') vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLP/appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular. 2. As a step towards management of litigation, it has been decided by the Board to revise the monetary limits for filing of appeals in Income-tax cases as stated in Para 4.1 of the aforementioned Circular as follows: Sl. No. Appeals/SLPs in Income-tax matters Monetary Limit (Tax effect in Rs.) 1. Before Income Tax Appellate Tribunal 60lakh 2. Before High Court 2 crore 3 ITA No. 2350/Chny/2024 3. Before Supreme Court 5 crore 3. Monetary limits given in paragraph 2 above with regard to filing appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income-tax Act, 1961 with exceptions as per paras 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits. 4. It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an appeal. 5. The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn. 6. The above may be brought to the notice of all concerned. 7. This issues under section 268A of the Income-tax Act, 1961. 4. It is pertinent to note that Para 5 of the circular clearly states that the modified limit would apply to all pending cases. 5. As the tax effect of the appeal filed is less than the monetary limit fixed for filing appeal by the revenue to the ITAT, we find force with the submission of the Ld AR that the appeal is not maintainable. 6. In the result, the appeal filed by the Revenue, on the basis of low tax effect, as per the circular cited supra, is dismissed. Order pronounced in the open court on 8th April, 2025 Sd/- Sd/- (जगदीश ) ( मनु क ुमार िग\u001bर ) ( Jagadish ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, 4 ITA No. 2350/Chny/2024 \u001bदनांक/Date: 08.04.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1. Appellant 2. Respondent 3. आयकर आयु\u0013/CIT Chennai/Madurai/ Salem 4. िवभागीय \bितिनिध/DR 5. गाड फाईल/GF. "