INCOME TAX OFFICER, WARD-1(3), AJMER vs. SHIV SHANKAR FATEHPURIA, AJMER

PER VIJAY PAL RAO, J.M.

This appeal by the Revenue is directed against the order dated 26.03.2018 of CIT (A), Ajmer for the assessment year 2014-15. The Revenue has raised the following grounds:-

“ On facts and in law, the ld. CIT (A), Ajmer erred in :- 1) Deleting the addition of Rs. 48,24,836/- made u/s 68 of the I.T. Act, 1961 on account of bogus claim of LTCG u/s 10(38) and addition of Rs. 36,186/- made u/s 69c of the I.T. Act, 1961 for commission payment, without appreciating the facts of the case and modus operandi of the scheme which clearly prove that all the transactions were sham transactions and used as a colorable device to create documentary evidences for converting unaccounted money into tax exempt income ; 2) deleting both the additions without appreciating the fact that the assessee made bogus claim of LTCG by availing

2 Shri Shiv Shankar Fatehpuria, Ajmer.

accommodation entries in listed companies incorporated with a view to provide accommodation entry. M/s. PS IT Infrastructure & Services Limited was one of such company whose director also admitted that this company is a paper company ; 2) The appellant craves to add, amend, alter, delete or modify the above ground of appeal before or at the time of hearing.”

Thus it is clear from the grounds raised by the revenue that the revenue is challenging the relief granted by the ld. CIT (A) of Rs. 48,24,836/- on account of addition made under section 68 and further Rs. 36,186/- on account of addition

made under section 69C. The tax effect in the revenue’s appeal is stated to be Rs.

(Appeals) and therefore, the tax effect in the appeal of the revenue is not exceeding

Rs. 20 lacs.

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.

3 Shri Shiv Shankar Fatehpuria, Ajmer.

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.

Order pronounced in the open court on 02/08/2018. (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:- 02/08/2018. Das/

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

4 Shri Shiv Shankar Fatehpuria, Ajmer.