2025 (5) TMI 736 - AT - Income Tax

Maintainability of appeal on low tax effect - HELD THAT - Tax effect involved in appeal as per Income Tax Computation Form provided to the assessee along with assessment order is less than Rs. 60 lakhs appeal of the Revenue is liable to dismissed on account of low tax effect. We hold accordingly. Liberty is granted to the Revenue to revive appeal in case the addition is made on account of any exception provided in para 3.1 of Circular No. 5/2024 dated 15.03.2024. Assessee made a statement at Bar that since appeal of the Revenue is dismissed on account of low tax effect he is not pressing cross objections and is withdrawing the same. Accordingly the cross objection of the assessee is dismissed as withdrawn. Appeal of the Revenue and cross objection of the assessee are dismissed.

Summary

Summary:The Income Tax Appellate Tribunal (ITAT) Delhi, comprising Judicial Member Shri Vikas Awasthy and Accountant Member Shri S Rifaur Rahman, dismissed the Revenue's appeal for assessment year 2015-16 due to "lower tax effect" as per Circular No. 9/2014. The assessee demonstrated that the total tax demand was Rs. 57,09,181/-, below the Rs. 60 lakh monetary threshold for filing an appeal. Although the Revenue cited a higher demand per Form No. 36, they conceded the tax computation showed a demand under Rs. 60 lakhs. The Tribunal held that "appeal of the Revenue is liable to be dismissed on account of low tax effect." Liberty was granted to the Revenue to revive the appeal if additions arise under exceptions in para 3.1 of Circular No. 5/2024 dated 15.03.2024. The assessee withdrew their cross objections following dismissal of the Revenue's appeal, leading to dismissal of both appeals.