INCOME TAX OFFICER, PATIALA V. TUSHAR BANSAL, PATIALA

ITA 1552/CHANDI/2025

AI Insights

The case involves three appeals by the Revenue against the orders of the Commissioner of Income Tax (Appeals) for the assessment year 2019-20. The appeals were related to an assessment order and two penalty orders issued under different sections of the Income Tax Act. The primary contention raised by the Revenue was the tax effect in each appeal, which was found to be below the monetary limit prescribed by the CBDT Circular for filing appeals. The court dismissed the appeals based on the monetary threshold, emphasizing that unless the tax effect exceeds Rs. 60 lacs, the appeals are not maintainable unless they fall under exceptional clauses of the Circular.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840480 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 24-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: ASHWANI KUMAR
• Keywords: Tax effect
• Section: 147; 144; 2

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA Nos. 1552, 1565 & 1588/CHD/2025 Ǔनधा[रण वष[ / Assessment Year: 2019-20 The ITO, Ward – 3, Patiala. Vs Tushar Bansal, 127, Phulkian Enclave, Patiala. èथायी लेखा सं./PAN NO: CQRPB1745E अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri Ashwani Kumar, CA Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 19.02.2026 Date of Pronouncement : 24.02.2026 VIRTUAL HEARING O R D E R PER RAJPAL YADAV, VP The present three appeals are directed at the instance of the Revenue against the separate orders of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 10.11.2025 passed in assessment years 2019-20. 2. A perusal of the record would indicate that ITA No. 1552/CHD/2025 emerges out from the proceedings u/s 147 Printed from counselvise.com ITA No.1552, 1565 & 1588/CHD/2025 A.Y.2019-20 2 read with Section 144 of the Act. The AO has passed the assessment order on 06.01.2025 whereas ITA No. 1565/CHD/2025 emerges out of penalty proceedings u/s 271AAC(1) of the Income Tax Act. The AO has passed the penalty order on 24.07.2025. ITA No. 1588/CHD/2025 emerges out from penalty order dated 23.07.2023 vide which ld. AO has levied penalty u/s 272A(I)(d) of the Income Tax Act. 3. The ld. counsel for the assessee at the very outset submitted that tax effect in each appeal is less than the monetary limit provided in the CBDT Circular for authorizing the revenue to file appeal before the Tribunal and hence, all these three appeals are not maintainable in their present form. 4. The ld. DR, on the other hand sought an adjournment on the ground that she would call for a report from the AO about the tax effect limit. 5. We have duly considered the rival contentions and gone through the record carefully. A perusal of Form No. 36 Printed from counselvise.com ITA No.1552, 1565 & 1588/CHD/2025 A.Y.2019-20 3 would indicate that tax effect in the quantum appeal is only Rs.3,77,743/- stated by the Revenue whereas in the penalty orders, this tax effect is being stated at Rs.37,260/- and Rs.10,000/- only. Thus, the tax limit in each appeal is less than the monetary limit of Rs.60 lacs provided in CBDT Circular No.09/2024 dated 17.09.2024. The CBDT has prohibited its authorities for challenging any order of ld.CIT (Appeals) before the Tribunal unless tax effect by virtue of relief given by the CIT (Appeals) exceeds Rs.60 lacs. The Circular further provides exceptional clauses where these appeals do not fall in any of the exceptional clauses contemplated in the circular. 6. We deem it appropriate to observe that in case, on re-verification, it comes to the notice of the Revenue that tax effect is more than the monetary limit or issue falls in any of the exceptional clauses provided in the Circular, then Revenue will be at liberty to get these appeals revived by filing a Miscellaneous Application. Such Miscellaneous Application has to be filed within the time limit provided in Section 254 sub-clause (2) of the Act. Printed from counselvise.com ITA No.1552, 1565 & 1588/CHD/2025 A.Y.2019-20 4 7. In view of the above, these appeals are dismissed being not maintainable. Order pronounced on 24.02.2026. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 5. गाडᭅ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "