DCIT, JAIPUR vs. SIYARAM EXPORTS INDIA PVT. LTD., JAIPUR

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ITA 317/JPR/2017Status: DisposedITAT Jaipur27 March 2019AY 2011-124 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as the tax effect was below the threshold limit of Rs. 20 lacs as per CBDT Circular No. 3/2018. Therefore, the appeal was dismissed.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of additions made under Sections 68, 36(1)(va), and 40(a)(ia) of the IT Act. The assessee raised an objection regarding the maintainability of the appeal due to the tax effect being below the prescribed limit.

What were the issues?

Whether the Revenue's appeal is maintainable before the ITAT when the tax effect is below the monetary limit prescribed by the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 68,Section 36(1)(va),Section 40(a)(ia),Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 317/JP/2017

This appeal by the revenue is directed against the order dated 27.03.2017 of ld. CIT (A)-4, Jaipur for the assessment year 2011-12. The revenue has raised the grounds of appeal as under :-

“ 1. Whether on the facts and in the circumstances of the case the CIT (A) was right in deleting the addition of Rs. 12,00,000/- made by A.O. on account of unexplained cash credit u/s 68 of Income-tax Act, 1961.

2. Whether on the facts and in the circumstances of the case the CIT (A) was right in deleting the addition of Rs. 12,957/- made by A.O. u/s 36(1)(va) of Income-tax Act, 1961.

3. Whether on the facts and in the circumstances of the case the CIT (A) was right in deleting the addition of Rs. 25,72,579/- made by A.O. u/s 40(a)(ia) of Income Tax Act, 1961.”

The Appellant crave, leave or reserves the right to amend, modify, alter add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.

The dispute in the appeal of the revenue is regarding deletion of addition of Rs. 12,00,000/- on account of unexplained cash credit u/s 68, deletion of addition of Rs. 12,957/- made by the AO under section 36(1)(va) and deletion of addition of Rs. 25,72,579/- made by the AO under section 40(a)(ia) of the IT Act.

2.

At the time of hearing, the ld. AR of the assessee has raised an objection of maintainability of the appeal of the Revenue due to the tax effect not exceeding Rs. 20 lacs as per the CBDT Circle No. 3 of 2018 dated 11th July, 2018. The ld. A/R submitted that in the facts of the present case, tax effect in Revenue’s appeal is Rs. 12,57,460/- which is below the prescribed limit of Rs 20 lacs.

3. The ld. D/R has fairly submitted that the tax effect involved in the Revenue’s appeal is less than 20 lacs which is prescribed threshold limit in terms of the CBDT Circular No. 3/2018 dated 11th July, 2018 issued in supersession of its earlier Circular No. 21 of 2015 dated 10.12.2015.

4.

We have heard the rival contentions and perused the materials available on record. It is observed that the demand/ tax effect in the Revenue’s appeal in question is below Rs. 20.00 lacs. Under the powers vested by section. 268A(1) of the I T Act, CBDT has recently issued Circular No. 3/2018 dated 11th July, 2018 (F No. 279/Misc. 142/2007-ITJ(Pt) instructing the authorities below that departmental appeal should not be filed before ITAT where the demand/tax effect does not exceed Rs. 20 lacs. The circular is specifically mentioned to be applicable for all pending appeals.

3.

Subject to some exceptions, it is further directed by CBDT that all the departmental appeals pending before ITAT where the demand/tax effect is not exceeding than 20 lacs should be either withdrawn or not pressed by the departmental representatives.

4. The present appeal is not covered by any exceptions mentioned in the said CBDT circular. Since the tax demand in dispute in this departmental appeal is below the limit set out by CBDT for the appeal, the appeal of the assessee is not maintainable in view of CBDT Circular No. 3 of 2018 dated 11.07.2018. Accordingly the appeal of the Department is dismissed as not pressed/withdrawn.

6.

In the result, the appeal of the Revenue is dismissed.

Order is pronounced in the open court on 27/03/2019.

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