ITAT Rules CBDT Monetary Limit of Rs.60 Lakh Applies Where Section 115BBE Is Inapplicable to Business Income:

The appeal was filed by the Revenue against the order dated 10.09.2025 passed by the CIT(A), arising from the assessment order dated 26.11.2019 passed under Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2017-18. The dispute is related to the taxation of surrendered income under Section 69B read with Section 115BBE of the Income Tax Act. The CIT(A) had relied upon judicial decisions holding that Section 115BBE was not applicable where the income represented suppression of business income and was consequently assessable as business income. The Revenue challenged the benefit granted by the CIT(A).

During the hearing, the assessee submitted that the actual tax effect involved in the appeal was Nil. Although the Revenue had shown the tax effect as Rs.4,44,35,271, the Tribunal noted that the computation was based on applying Section 115BBE to the disputed addition. The Tribunal referred to CBDT Circular No. 09/2024 dated 17/09/2024, by which the monetary limit for filing appeals before the Tribunal was revised to Rs.60 lakh. The Circular was stated to be applicable to pending appeals as well.

The Tribunal further relied upon the coordinate bench decision in DCIT Vs Hazoorilal & Sons Jewelers Pvt. Ltd. case wherein it was held that where Section 115BBE was not applicable to the addition and the tax effect was consequently below the prescribed monetary limit, the Revenue’s appeal before the Tribunal was not maintainable.

Accordingly, applying the CBDT Circular dated 17.09.2024, the Tribunal held that the Revenue’s appeal was not maintainable on account of the prescribed monetary limit and dismissed the appeal.