INCOME TAX OFFICER, CORPORATE WARD-2(3), CHENNAI V. INDUSTRIAS DEL RECAMBIO INDIA PRIVATE LIMITED, KANCHIPURAM, TAMILNADU

ITA 568/CHNY/2025

AI Insights

The case involves an appeal by the Income Tax Officer, Corporate Ward-2(3), Chennai against Industrias Del Recambio India Pvt. Ltd. for the Assessment Year 2016-17. The appeal was based on an order from the Learned Commissioner of Income Tax, Appeal, Chennai-16, dated 19.12.2024. The primary contention in the appeal was the tax effect, which amounted to Rs. 44,35,727, below the Rs. 60 lakhs threshold set by the CBDT Circular No. 09 of 2024. The Departmental Representative argued that the case fell under an exception to the monetary limit, but failed to provide substantiating documents. Consequently, the tribunal dismissed the appeal as not maintainable under the specified monetary limit.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772701 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2016-2017
• Laws Referred To: CBDT Circular No.09 of 2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. MURUGESAN
• Assessee Lawyers: ARIHANTH KUMAR JAIN.G; C.A
• Keywords: Tax effect

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.568/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2016-17 The Income Tax Officer, Corporate Ward-2(3), Chennai. Vs. Industrias Del Recambio India Pvt. Ltd., A-7, SPICOT Industrial Growth Centre, Mathur Post, Sriperumpudur Taluk, Mathur B.O., Oragadam, Kanchipuram – 602 105. [PAN: AABCI 3336B] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थG की ओर से/ Assessee by : Shri Arihanth Kumar Jain.G, C.A IJथG की ओर से /Revenue by : Shri C. Murugesan, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 14.08.2025 घोषणा की ता रीख /Date of Pronouncement : 28.08.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax, Appeal, Chennai-16 [hereinafter “CIT(A)”] dated 19.12.2024. 2. The Ld AR at the outset stated that the tax effect involved in the above appeal is Rs. 44,35,727/- which is less than Rs. 60 lakhs. The Printed from counselvise.com ITA No.568 /Chny/2025 Industrias Del Recambio India Pvt. Ltd. :- 2 -: CBDT vide Circular No.09 of 2024 dated 17.09.2024 has increased the monetary limit for filing the appeal by the Revenue before the ITAT to Rs. 60 Lakhs. In the said circular, it is stated that in cases where the tax effect in the appeal to be filed before the Appellate Tribunal does not exceed Rs. 60 lakhs appeals should not be filed. 3. The Ld. Departmental Representative (DR), however, submitted that the CBDT circular 5/2024 in para 3 itself has carved out exceptions and clarified that appeals may still be contested on merits notwithstanding the monetary limit. 4. We have considered the submissions of both sides and perused the material on record. The Ld DR has submitted that the case was covered by exception but could not substantiate with supporting documents as under which clause it is exempted from the monetary limit. Thus, taking note of CBDT Circular No. 09 of 2024 dated 17.09.2024 and considering the fact that the tax effect in the instant appeal is less than Rs. 60 lakhs, the present appeal deserves to be dismissed as withdrawn / not maintainable. However, we make it clear that the issues raised in the instant appeal is left open to be examined in the appropriate proceedings, if arises, in future. At the same time, we also make it clear that if the appeal fall in any of the exceptions Printed from counselvise.com ITA No.568 /Chny/2025 Industrias Del Recambio India Pvt. Ltd. :- 3 -: referred to in the above said CBDT Circular, the Revenue is at liberty to move an application for recalling the order, if so advised. Accordingly, in the light of CBDT circular No. 09 of 2024 dated 17.09.2024, this appeal stands dismissed. 5. In the result, the appeal filed by the Revenue is dismissed. Order pronounced on 28th day of August, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 28th August, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "