DCIT, JAIPUR vs. ANISH RAJ SETHI, JAIPUR

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ITA 99/JPR/2016Status: DisposedITAT Jaipur07 August 2018AY 2010-115 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeal was not maintainable as the tax effect was below the prescribed limit. Consequently, the appeal was dismissed as not pressed.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 53,02,780/- made by the AO. The tax effect in the appeal was below the threshold limit prescribed by CBDT Circular No. 3 of 2018.

What were the issues?

Maintainability of Revenue's appeal before the ITAT due to low tax effect as per 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. 99/JP/2016

Heard together (2 matters)

ITA No. 99/JP/2016
C.O. No. 16/JP/2016

Read from the judgment's own cause title. This page is filed under one of them.

PER VIJAY PAL RAO, JM :

This appeal by the revenue is directed against the order dated 24.11.2015 of

ld. CIT (A)-I, Jaipur for the assessment year 2010-11. The revenue has raised the

following grounds :-

“ Whether on the facts and in the circumstances of the case and in law the ld. CIT (A) has erred in deleting addition of Rs. 53,02,780/- made by the A.O. on account of undisclosed income.”

2 ITA NO. 99/JP/2016 Shri Anish Raj Sethi, Jaipur.

2.

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

of Rs. 53,02,780/- made by the AO on account of undisclosed income. 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. 99/JP/2016 Shri Anish Raj Sethi, 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.

Cross Objection No. 16/JP/2016.

The assessee has filed the Cross Objection on the following grounds :-

“ 1. In the facts and circumstances of the case and in law the ld. CIT (A) has erred in confirming the validity of action of ld. AO in issuing the notice u/s 148 of the Income Tax Act, 1961. The action of the ld. CIT (A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the reassessment proceedings being illegal and without any basis.

2.

The assessee craves its rights to add, amend or alter any of the grounds on or before the hearing.

6.

At the time of hearing, the ld. Counsel for the assessee stated at bar that as the assessee does not want to press the cross objection on the ground that the appeal of the

revenue being not maintainable on account of tax limit not exceeding Rs. 20 lacs as per the CBDT Circular No. 3/2018 dated 11th July, 2018 and is dismissed, therefore, the cross

objection of the assessee may be dismissed as not pressed. Accordingly, the cross objection of the assessee is dismissed being not pressed.

7.

In the result, the appeal of the Revenue as well as Cross objection of the assessee are dismissed.

Order pronounced in the open court on 07/08/2018. 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:- 07/08/2018. Das/

4 ITA NO. 99/JP/2016 Shri Anish Raj Sethi, Jaipur.

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

1.

The Appellant- The DCIT, Circle-3, Jaipur. 2. The Respondent –Shri Anish Raj Sethi, Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 99/JP/2016 & CO No. 16/JP/2016) vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

5 ITA NO. 99/JP/2016 Shri Anish Raj Sethi, Jaipur.

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