INCOME TAX OFFICER, MORBI V. NEETABEN ATULBHAI SHERASIYA, MORBI

ITA 364/RJT/2025

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The case involves an appeal by the Income Tax Officer (ITO), Ward-1, against Neetaben Atulbhai Sherasiya concerning the Assessment Year 2017-18. The appeal was directed against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, which had deleted an addition/disallowance of Rs. 18,78,000. The Revenue's appeal was initially within the monetary limits for filing but was subsequently found to be below the new threshold set by CBDT Circular No. 09/2024, which mandates a higher monetary limit for filing appeals to reduce litigation. The tribunal, referencing the Supreme Court's decision in Commissioner of Customs vs. Indian Oil Corporation Ltd., upheld the binding nature of the CBDT Circular on the Revenue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779877 (ITAT-RAJKOT)
• Duration Of Justice: 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 29-05-2025
• Other Referred Cases: Commissioner of Customs vs. Indian Oil Corporation Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHETAN AGARWAL; LD
• Assessee Lawyers: ABHIMANYU SINGH YADAV
• Keywords: Tax effect
• Section: 147; 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं/.ITA No. 364/RJT/2025 िनधाªरण वषª / Assessment Year: (2017-18) The ITO, Ward-1, KJ Chamber, NH 8A, At. Lalpar, Morbi-363642 Vs. Neetaben Atulbhai Sherasiya Block No.51, Madhapar, Vavdi Road, Morbi-363641 PAN : EDHPS6760R APPELLANT RESPONDEDNT Appellant by Shri Chetan Agarwal, Ld. A.R. Respondent by Shri Abhimanyu Singh Yadav, Sr. DR Date of hearing 27/08/2025 Date of pronouncement 13/10/2025 आदेश / O R D E R Per, Dr. Arjun Lal Saini, AM: The captioned appeal filed by the Revenue, pertaining to Assessment Year (AY) 2017-18, is directed against the order passed by the National Faceless Appeal Centre (NFAC), Delhi dated 27-03-2025 which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short the ‘Act’) dated 26.05.2023. 2. In this revenue’s appeal in ITA No. 364/Rjt/2025, we noticed that revenue has raised ground in respect of addition deleted by the ld. CIT(A), which relates to addition/disallowance of Rs. 18,78,000/- on which total tax comes to Rs.14,50,755/-, which comes in the ambit of tax effect of CBDT Circular vide Circular No. 09/2024 dated 17.09.2024. Printed from counselvise.com ITA No.364/Rjt/2025 Neetaben A. Sherasiya Page | 2 3. The CBDT has issued Circular No. 09/2024 dated 17.09.2024, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows: 1. Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/- 4. In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. Though this appeal had been filed by the revenue on 29/05/2025 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, however, in view of the recent Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.09/2024 referred to above. 5. It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs. Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute. The appeal under consideration has certainly been filed contrary to the Circular issued by the CBDT Circular No.09 dated 17.09.2024 Printed from counselvise.com ITA No.364/Rjt/2025 Neetaben A. Sherasiya Page | 3 6. In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order. 7. In the result, the appeal of the Revenue (in ITA No. 364/Rjt/2025 for AY.2017-18) is dismissed. Order is pronounced in the open court on 13/10/2025 Sd/- Sd/- (DINESH MOHAN SINHA) (DR.ARJUNLAL SAINI) Æयाियक सदÖय/JUDICIAL MEMBE लेखा सदÖय/ACCOUNTANT MEMBER राजकोट /Rajkot िदनांक/ Date: 13/10/2025 आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Assessee  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडª फाईल/ Guard File /True copy/ By order Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "