The Principal Commissioner passed order under section 263. The Tribunal quashed the order passed by the Principal Commissioner. The Assessing Officer quantified tax liability at Rs. 32.61 lakhs. The revenue filed instant appeal on ground that the present appeal fell under the exception provided in clause 3.1(f) of Circular No. 5/2024 dated 15-3-2024 as order passed under section 263 had been specifically mentioned in the aforesaid clause.

The assessee submitted that the appeal was covered by Circular No. 5/2024 dated 15-3-2024 that provided for limits wherein the Department could file appeal before the High Courts. She submitted that the amount prescribed therein was tax liability of Rs. 1 crore. In light of the same, she submitted that since none of the exceptions provided in clause 3.1 of the aforesaid circular were applicable, instant appeal under section 260A could not be filed by the revenue. Dismissing the appeal the Court held that upon a careful perusal of the relevant clauses of the Circular No. 5/2024, dated 15-3-2024, it appears that where the tax liability is not quantifiable or is not involved, in such cases the order passed under section 263 would fall under the exception provided in clause 3.1(f). In the present case, such is not the case and the entire issue is with regard to the tax, and quantification of the same has also been made by the Assessing Officer. As the quantum involved is below Rs. 1 crore, the appeal is covered by the said circular and is not maintainable before the High Court.  The appeal filed by the revenue is not maintainable and the same is, accordingly, dismissed.  (AY. 2017-18)