What did the Tribunal hold?

The Tribunal found that the tax effect was below the threshold specified in the CBDT Circular and did not fall under any exceptions. Therefore, the appeal was not maintainable.

The Revenue appealed the deletion of an addition made on account of unexplained investment in land. The assessee argued for dismissal due to low tax effect as per CBDT Circular No. 3 of 2018.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal given the low tax effect as per CBDT Circulars.

The Asstt. Commr. of Income Tax… vs Shri Rajesh Jayantilal Faldu… | ITAT Rajkot 2018

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI P. K. KEDIA & SHRI MAHAVIR PRASAD

For Appellant: Shri Jitender Kumar, CIT/ D.R

PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. This appeal by the Revenue is directed against the order of the Ld. CIT(A)-11, Ahmedabad dated 21.07.2016 pertaining to A.Y. 2013-14, on the following grounds:

ITA No. 440/RJT/2016 2 . A.Y. 2013-14 1. On the facts and fn the circumstances of the case and in law, the Ld. CIT(A) has erred in law and/or on facts in deleting the addition made on account of unexplained investment in land of Rs.58,64,800/-.

On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the A.O.

It is, therefore, prayed that the order of the CIT (A) be set aside and that of the A.O. be restored to the above extent.

At the outset, the ld. Counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No. 3 of 2018 dated 11.07.2018. Ld. Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

We have heard both the parties and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No. 03/2015 in F.No.279/Misc. 142/2007-ITJ (Pt) dated 11th July 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20 lacs. The Board has provided exceptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall

ITA No. 440/RJT/2016 3 . A.Y. 2013-14 within the exception clause and the tax is less than Rs.20 lacs. Therefore, the present appeal is not maintainable and hence dismissed.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in Open Court on 13 - 08- 2018

Sd/- Sd/- (P. K. KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 13 /08/2018 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad

THE ASSTT. COMMR. OF INCOME TAX, CEN.CIRCLE-2, RAJKOT-GUJARAT vs. SHRI RAJESH JAYANTILAL FALDU, RAJKOT-GUJARAT

What did the Tribunal hold?

What were the facts?

What were the issues?

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