ITO, JAIPUR vs. ANIL BIJLANI, JAIPUR

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ITA 35/JPR/2014Status: DisposedITAT Jaipur08 August 2018AY 2009-104 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable as the tax effect was below the prescribed limit by CBDT Circular No. 3 of 2018. The appeal was dismissed as not pressed/withdrawn.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 37,46,757/- made by the AO on account of unexplained credit card expenses. The tax effect involved in the appeal was below the threshold limit prescribed by CBDT Circular No. 3 of 2018.

What were the issues?

Whether the departmental 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 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. 35/JP/2014

PER VIJAY PAL RAO, JM :

This appeal by the revenue is directed against the order dated 11.11.2013 of

ld. CIT (A)-II, Jaipur for the assessment year 2009-10. The revenue has raised the

following grounds :-

“ On the facts and in the circumstances of the case and in law the ld. CIT (Appeals), Bikaner Camp at Jaipur has erred in :

(i) Whether the ld. CIT (Appeals) has erred in deleting addition of Rs. 37,46,757/- made on account of unexplained payment made to banks for expenses incurred through Credit cards.

(ii) Whether the ld. CIT (Appeals) has erred presuming that transactions of Credit Cards were in the nature of retail trade carried by the assessee.

(iii) The appellant craves its rights to add, amend or alter any of the grounds on or before the hearing.

2 ITA No. 35/JP/2014 Shri Anil Bijlani, Jaipur.

2.

The dispute in this appeal of the revenue is regarding the deletion of addition

of Rs. 37,46,757/- made by the AO on account of unexplained payment made to

banks for expenses incurred through Credit Cards. 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.

3.

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.

4.

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.

5.

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

3 ITA No. 35/JP/2014 Shri Anil Bijlani, Jaipur.

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.

7.

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

Order pronounced in the open court on 08/08/2018.

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:- 08/08/2018. Das/

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

1.

The Appellant- The ITO Ward 6(1), Jaipur. 2. The Respondent –Shri Anil Bijlani, Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 35/JP/2014) vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

4 ITA No. 35/JP/2014 Shri Anil Bijlani, Jaipur.

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