Key Observations

At the outset, the counsel for the respondent-assessee, Mr. Sanjay Gupta, submitted that the tax effect involved in the disputed matter was below the monetary limit of ₹60,00,000, as specified by CBDT Circular No. 05/2024, dated 15.03.2024. Consequently, the appeal was deemed non-maintainable.

The Departmental Representative (DR) acknowledged the factual accuracy of the claim. However, the DR requested that liberty be granted to the Revenue to revive the appeal if it was later determined that:

1. The tax effect exceeded ₹60,00,000; or
2. The matter fell under any of the exceptions provided in the Circular.

Tribunal’s Decision

The Tribunal carefully reviewed the facts and submissions made by both parties, along with the departmental records. It noted that the tax effect in the present case did not exceed the threshold of ₹60,00,000 prescribed by the CBDT Circular No. 05/2024. Furthermore, there was no evidence to indicate that the appeal was covered under any exceptions to the Circular.

In view of these findings, the Tribunal concluded that the appeal fell squarely within the purview of the Circular, deeming it non-maintainable. Accordingly, the appeal was dismissed.

Liberty for Revival

The Tribunal granted liberty to the Revenue to seek a revival of the appeal if it was later discovered that the tax effect exceeded ₹60,00,000 or if the case was found to fall under one of the exceptions in the Circular.

Conclusion

The appeal filed by the Revenue was dismissed on the grounds of low tax effect, with an option to revive the case under specified circumstances.

Case Details:
Appellant: Deputy Commissioner of Income Tax, CC-31, New Delhi
Respondent: Sh. Sanjay Gupta, Shahdara, Delhi
Date of Order: 02.01.2024

This decision underscores the adherence to monetary limits set by the CBDT to reduce litigation and streamline the appeal process in tax matters.