THE ITO, WARD-1(1)(2),, AHMEDABAD vs. M/S. BIOGRAPHY INVESTMENT PVT. LTD.,, AHMEDABAD

आदेश / O R D E R

PER MAHAVIR PRASAD, JUDICIAL MEMBER:

The captioned appeal has been filed at the instance of the revenue against the order of the Commissioner of Income Tax(Appeal)-1, Ahmedabad [CIT(A) in short] dated 29-03-2016 arising in the matter of assessment order passed under s.143(3) r.w.s 147 of the Income Tax Act, 1961(here-in-after referred to as "the Act") dated 29.03.2016 relevant to Assessment Year (AY) 2005-06.

ITA No.1404/Ahd/2016 ITO vs. Biography Investment Pvt. Ltd. A.Y. 2005-06

- 2 - 2. The grounds of appeal raised by the Revenue are as under:-

“1. That the ld.CIT(A) has erred in law and in facts in deleting the addition of Rs.50,00,000/- made on account of "Unproved Cash Credit u/s 68." 2. That the ld.CIT(A) has substantially erred in not appreciating and considering the finding of A.O. 3. That the ld.CIT(A) has substantially erred in not considering the facts that the assessee had failed to prove the creditworthiness of the party to whom the shares were sold and also failed to prove the genuineness of the transaction. 4. That the ld.CIT(A) has substantially erred in not considering the findings of AO that all the 50,000 shares allotted by the company to the assessee have been held by it up to 30.09.2010 and the same has actually been sold to Mr. Suvas Barot in financial year 2009-10. 5. That the ld.CIT(A) ought to have upheld the addition of Rs.50,00,000/- as "Unproved Cash Credit u/s 68"-considering the findings in the assessment order. On the fact and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the Assessing Officer to the extent mentioned above since the assessee has failed to disclose his true income/book profit. The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored to the above extent. The appellant craves, to leave, to amend or alter any ground or add a new ground which may be necessary.” 3. At the time of the hearing, we observe that the tax effect in the appeal filed by the Revenue is less than Rs. 20 lacs. As per the Circular No. 3 of 2018 dated 11/07/2018 issued by CBDT recently all pending appeals filed by Revenue are liable to be dismissed/ withdrawn/ not pressed to reduce the litigation where the tax effect does not exceed the

ITA No.1404/Ahd/2016 ITO vs. Biography Investment Pvt. Ltd. A.Y. 2005-06

- 3 - prescribed monetary limit, i.e., Rs.20 Lacs. The relevant extract of the circular is reproduced below: “2. In supersession of the above Circular, it has been decided by the Board that departmental appeals may be filed on merits before Income Tax Appellate Tribunal and High Courts and SLPs/ appeals before Supreme Court keeping in view the monetary limits and conditions specified below. 3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:

S. Appeals/ SLPs in Income-tax matters Monetary Limit No. (Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000

The monetary limit for filing the appeals by the Revenue before the Tribunal has been increased to Rs. 20 Lacs. It is also clarified in the said Circular that the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.20 lacs may be withdrawn / not pressed.

In the case on hand, it was noticed that the tax effect on the disputed issue raised by the Revenue is claimed to be less Rs.20 Lacs. Therefore appeal of the Revenue is required to be dismissed in limine in terms of the above circular.

ITA No.1404/Ahd/2016 ITO vs. Biography Investment Pvt. Ltd. A.Y. 2005-06

- 4 - 4. The Ld. DR for the Revenue fairly agreed on the applicability of the CBDT Circular No. 3 of 2018. Accordingly, the appeal of the Revenue is dismissed as not maintainable. However, the Revenue is at the liberty to move the miscellaneous application to recall the order if the tax effect exceeds the threshold limit or the case of the Revenue falls in any of the exception provided in the aforesaid CBDT Circular in any manner. The MA shall be filed within the prescribed time. Hence the appeal of the Revenue is dismissed.

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ITA No.1404/Ahd/2016 ITO vs. Biography Investment Pvt. Ltd. A.Y. 2005-06

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-1, Ahmedabad. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad. 5. 6. गाड� फाईल / Guard file. आदेशानुसार/BY ORDER, स�या�पत ��त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad