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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 241/JP/2017
PER VIJAY PAL RAO, JM :
This appeal by the revenue is directed against the order dated 06.01.2017 of
ld. CIT (A), Alwar for the assessment year 2012-13. The revenue has raised the
following grounds :-
“ 1. On the facts and in the circumstances of the case ld. CIT (A) erred in reducing the addition of Rs. 54,30,000/- to Rs. 9,00,000/- which was made by AO on account of non-genuine accommodation entries/unsecured loans taken by the assessee.
On the facts and in the circumstances of the case ld. CIT (A) erred in reducing the addition of Rs. 5,27,538/- to Rs. 2,11,800/- which was made by AO on account of interest paid on non genuine accommodation entries/unsecured loans taken by the assessee.
On the facts and in the circumstances of the case ld. CIT (A) erred in deleting the trading addition of Rs. 9,86,536/- made by
2 ITA No. 241/JP/2017 Shri Raj Kumar Goyal, Bharatpur.
AO by invoking provision of section 145(3) of the IT Act after rejecting the books of account.
The dispute in the appeal of the revenue is regarding reducing the addition of
Rs. 54,30,000/- to Rs. 9,00,000/- and reducing the addition of Rs. 5,27,538/- to Rs.
2,11,800/- which were made by AO on account of non genuine accommodation
entries/unsecured loans and interest paid on non-genuine accommodation
entries/unsecured loans respectively and deletion of trading addition of Rs.
9,86,536/- made by the AO by invoking the provisions of section 145(3).
Admittedly the tax effect in the revenue’s appeal is not exceeding the limit of Rs. 20
lacs as per CBDT Circular No. 3 of 2018.
2.1. 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.
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 ITA No. 241/JP/2017 Shri Raj Kumar Goyal, Bharatpur.
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.
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.
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 28/08/2018.
Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Jaipur Dated:- 28/08/2018. Das/
आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
The Appellant- The Income-tax Officer, Ward 2, Bharatpur. 2. The Respondent –Shri Raj Kumar Goyal, Bharatpur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 241/JP/2017) vkns'kkuqlkj@ By order,
सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत
4 ITA No. 241/JP/2017 Shri Raj Kumar Goyal, Bharatpur.