THE DY. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE-1, AHMEDABAD vs. GROW MORE FOUNDATION, SABARKANTHA
What did the Tribunal hold?
The Tribunal dismissed the Revenue's appeal as not maintainable, acknowledging the applicability of the CBDT Circular No. 3 of 2018. The Revenue can seek restoration if they can show the circular's inapplicability.
What were the facts?
The Revenue appealed against the CIT(A)'s order which allowed the assessee's appeal, negating the AO's disallowance of Rs. 63,38,922/- as unexplained income. The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for appeals.
What were the issues?
Whether the Revenue's appeal is maintainable in light of the CBDT circular on monetary limits for appeals.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR
आदेश/O R D E R
PER PRADIP KUMAR KEDIA - AM:
The captioned appeal has been filed at the instance of the
Revenue against the order of the Commissioner of Income Tax
(Appeals)-9, Ahmedabad (‘CIT(A)’ in short), dated 24.05.2016
arising in the assessment order dated 25.03.2013 passed by the
ITA No.1942/Ahd/16 [DCIT(E) vs. Grow More Foundation] A.Y. 2010-11 - 2 -
Assessing Officer (AO) under s. 143(3) of the Income Tax Act,
1961 (the Act) concerning assessment year 2010-11.
The grounds of appeal raised by the Revenue read as under:-
“I) Whether on the facts and in the circumstances of the case the Ld. CIT(A) is justified in allowing the assessee’s appeal negating the findings of the Assessing Officer regarding the disallowance of Rs.63,38,922/- being loans treated as unexplained income u/s.68 of the I.T.Act”.
At the time of hearing, it was submitted by the Ld.AR for
the assessee that the appeal filed by the Revenue is hit by recently
issued CBDT Circular No.3 of 2018 dated 11/07/2018 revising the
previous thresholds pertaining to tax effects. As per aforesaid
Circular, all pending appeals filed by Revenue are liable to be
dismissed as a measure for reducing litigation where the tax effect
does not exceed the prescribed monetary limit which is now
revised at Rs.20 Lakhs. In the instant case, the tax effect on the
disputed issues raised by the Revenue is stated to be not
exceeding Rs.20 lakhs and therefore appeal of the Revenue is
required to be dismissed in limine.
The Learned DR for the Revenue fairly admitted the
applicability of the CBDT Circular No. 3 of 2018. Accordingly,
appeal of the Revenue is dismissed as not maintainable. However,
ITA No.1942/Ahd/16 [DCIT(E) vs. Grow More Foundation] A.Y. 2010-11 - 3 -
it will be open to the Revenue to seek restoration of its appeal on
showing inapplicability of the aforesaid CBDT Circular in any
manner.
In the result, the appeal of the Revenue is dismissed.
This Order pronounced in Open Court on 19/12/2018
Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 19/12/2018 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।
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