INCOME TAX OFFICER, GURGAON V. SORAM, GURGAON

ITA 3046/DEL/2024

AI Insights

This case involves cross appeals by the assessee, Soram, and the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeals were related to the assessment year 2017-18. The primary contention in the Revenue's appeal was the tax effect, which was argued to be below the threshold set by the CBDT for maintainability of the appeal. The assessee's representative argued that if the Revenue's appeal was dismissed due to the low tax effect, they would not pursue their cross appeal. The tribunal found the Revenue's appeal not maintainable on the grounds of low tax effect and dismissed both appeals accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669347 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Laws Referred To: CBDT Circular No. 09/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARPAT SINGH
• Assessee Lawyers: CHARITRA KUMR
• Keywords: Tax effect

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.3032/Del/2024 (ASSESSMENT YEAR:2027-18) Soram, 68, Mohammadpur, Jharsa, Sector-36, Kharki Dola (161), Haryna-122004. PAN:EBHPS2276G Vs. Income Tax Officer Ward-4(1), Gurgaon. (Appellant) (Respondent) ITA No.3046/Del/2024 (ASSESSMENT YEAR:2027-18) Income Tax Officer Ward-4(1), Gurgaon. Vs. Soram, 68, Mohammadpur, Jharsa, Sector-36, Kharki Dola (161), Haryna-122004. PAN:EBHPS2276G (Appellant) (Respondent) O R D E R PER MANISH AGARWAL, AM: These are cross appeals filed by the assessee and the Revenue against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide order dated 22.04.2024 in Appeal No. NFAC/2016-17/10152576 for Assessment Year 2017-18. 2. Before us, the Ld. AR of the assessee submitted that the tax effect in the case of the appeal filed by the Revenue is below the maximum limit prescribed by CBDT. He further submits that while computing tax effect, the Assessee by CA Charitra Kumr Department by Shri Narpat Singh, Sr. DR Date of hearing 24.06.2025 Date of pronouncement 27.06.2025 2 IT Nos.3032 & 3046/Del/2024 Soram vs. ITO Revenue in its appeal memo in Form 36, total tax effect was taken at Rs.60,26,747/- wherein the tax on the return of income at Rs.2,88,081/-was not reduced. If the same is reduced, the disputed tax involved in present appeal works out at Rs.57,38,666/- which is less than monetary limits under the latest CBDT Circular No. 09/2024 dated 17/09/2024 wherein the CBDT has revised the monetary limit of disputed tax for filing the appeals before the Tribunal to Rs.60 Lacs. In such circumstance, the present appeal filed by the Revenue in case of tax effect is not maintainable. It is thus, requested by Ld. AR that the appeal of the Revenue deserves to be dismissed as having low tax effect. It is further, submitted by the ld. AR that in the event the Revenue’s appeal is dismissed being low tax effect, the assessee will not pursue the cross appeal filed. 3. On the other hand, the Ld. Sr. DR supported the orders of the AO and submits that the matter may be decided in accordance with law. 4. Heard both the parties. From perusal of the computation of disputed tax worked out by the assessee, it is seen that after reducing the tax paid on the return income, the amount of disputed tax comes to Rs.57,38,666/-.The CBDT vide Circular No.09/2024 dated 17/09/2024, prescribed the monetary limits for filing of appeal by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court as a measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows: i) Before Appellate Tribunal Rs. 60,00,000/- ii) Before High Court Rs. 2,00,00,000/- iii) Before Supreme Court Rs. 5,00,00,000/- 5. As observed above, in the present case, the disputed tax effect of the appeal filed by the revenue is less than Rs.60,00,000/-, and thus the appeal preferred by the Revenue is found to be not maintainable. In view of these facts, the Revenue’s appeal is not admissible being low tax effect. However, liberty is granted to the revenue to move before this Tribunal for recalling of the order, if the department finds that the tax effect in the present appeal is 3 IT Nos.3032 & 3046/Del/2024 Soram vs. ITO more than Rs.60 lakhs or despite low tax effect, the appeal of the revenue is maintainable. 6. Since we have already dismissed the appeal of the revenue being non maintainable on the ground of low tax effect, in terms of submissions of the Ld. AR, the Cross appeal filed by the assessee in support of the order of the Ld. CIT(A) is also dismissed. 6. In the result, both the appeal of revenue and assessee are dismissed. Order pronounced on 27/06/2025. Sd/- Sd/- (ANUBHAV SHARMA) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27.06.2025. PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "