THE ITO, WARD 2(6), BARODA vs. SHRI VIPUL ANANDLAL SHAH, BARODA

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The captioned appeal has been filed at the instance of the revenue against the order of the Commissioner of Income Tax(Appeal)-5, Vadodara [CIT(A) in short] vide appeal no.CAB/11-67/13-14 dated 12-12-2014 arising in the matter of assessment order passed under s.143(3) r.ws. 147 of the Income Tax Act, 1961(here-in-after referred to as "the Act") dated 28.03.2013 relevant to Assessment Year (AY) 2008-09. 2. The grounds of appeal raised by the Revenue are as under:-

“i. In deleting the disallowance of Rs.17,00,000/- made on account of unexplained cash credits ignoring the fact that the creditworthiness and identification remained to be established. ii. In deleting the addition to the tune of Rs.41,92,720/- made on account of cash deposits without appreciating several defects pointed out by AO in the assessment order..”

“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.

S. Appeals/ SLPs in Income-tax matters Monetary Limit No. (Rs.)

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 The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.20 lacs may be withdrawn / not pressed.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.