INCOME TAX OFFICER WARD 2(1), JAMNAGAR V. CHANDRASHEKHAR SHARAD YAGNIK, JAMNAGAR

ITA 124/RJT/2026

AI Insights

The case involves an appeal by the Income Tax Officer against Chandrashekhar Sarad Yagnik concerning the Assessment Year 2020-21. The appeal was directed against an order passed by the National Faceless Appeal Centre (NFAC), which had deleted an addition of Rs. 13,01,711 under 'income from other sources'. The Revenue's appeal was initially within the monetary limits for filing but was found to be non-maintainable under the new CBDT Circular No. 09/2024, which raised the monetary threshold for appeals to reduce litigation. The Tribunal emphasized that the Circular is binding on the Revenue, referencing the Supreme Court's decision in Commissioner of Customs vs. Indian Oil Corporation Ltd.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834072 (ITAT-RAJKOT)
• Duration Of Justice: 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Appeal Filed On: 28-01-2026
• 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: DHEERAJ KUMR GUPTA; LD.
• Assessee Lawyers: KUMAR PANDYA; LD
• Keywords: Tax effect
• Section: 147

Judgement Text

" आयकर अपीलीय अिधकरण,राजकोट Ɋायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकरअपीलसं/.ITA No.124/RJT/2026 िनधाªरणवषª/Assessment Year: (2020-21) Income Tax Officer 316, Aaykar Bhawan, Jamnagar Rajkot Highway, Jamnagar Jamnagar-361001 Vs. Chandrashekhar Sarad Yagnik A1001, Nirman Rejoice, Jagatpur Digvijaynagar PO, GOTA, Ahmedabad, Ahmedabad-382470 Öथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAHPY1867E (Appellant) (Respondent) िनधाªåरती कì ओर से/Assessee by : Shri Kumar Pandya, Ld. AR राजÖव कì ओर से/Revenue by : Shri Dheeraj Kumr Gupta, Ld. Sr-DR सुनवाई कì तारीख/Date of Hearing : 06/02/2026 घोषणा कì तारीख/Date of Pronouncement : 06/02/2026 आदेश / O R D E R Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by revenue pertaining to Assessment Year 2020-21, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 07.11.2025, which in turn arises out of a penalty order passed by Assessing Officer u/s. 147 r.w.s. 144 of the Act on 24.01.2025. Printed from counselvise.com Page 2 of 3 ITA No. 124/Rjt/2026 ITO v. Chandrashekhar S. Yagnik 2. In this revenue’s appeal in ITA No. 124/RJT/2026, I noticed that revenue has raised ground in respect of addition deleted by the ld. CIT(A),which relates to income from other sources at Rs.13,01,711/- on which total tax comes to Rs.5,55,507/-, which comes in the ambit of tax effect of CBDT Circular vide Circular No. 09/2024 dated 17.09.2024. 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 30/01/2026 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, 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 Printed from counselvise.com Page 3 of 3 ITA No. 124/Rjt/2026 ITO v. Chandrashekhar S. Yagnik 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.09/2024 dated 17.09.2024. 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. 124/RJT/2026 for AY.2020-21) is dismissed. Order pronounced in the open court on 06/02/2026. Sd/- (Dr. Arjun Lal Saini) लेखा सदÖय/Accountant Member राजकोट/Rajkot िदनांक/ Date: 06 /02/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, RAJKOT 6. Guard File By order //True Copy// Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "