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Facts
The Revenue appealed against the CIT(A)'s deletion of an addition of Rs. 68.50 lakhs made under Section 69A for unexplained cash deposits during demonetization. The assessee also filed Cross Objections challenging the validity of the assessment notice issued under Section 143(2).
Held
The Tribunal dismissed the Revenue's appeal, finding it non-maintainable as the tax effect (Rs. 52,91,625/-) was below the monetary limit of Rs. 60 lakhs as per CBDT Circular No. 9 of 2024. The assessee's Cross Objections were also dismissed as withdrawn.
Key Issues
Whether the Revenue's appeal was maintainable due to low tax effect as per CBDT circulars, and the validity of the addition under Section 69A and the Section 143(2) assessment notice.
Sections Cited
69A, 143(2), 143(3), 250
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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
order
: 29-August-2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the Revenue is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2017-18 dated 30.04.2025, which has been passed against the assessment order u/s 143(3) of the Act, dated 12.12.2019.The assessee has also filed Cross Objections in respect of the appeal of the Revenue.
The Revenue is in appeal before the Tribunal raising the following grounds of appeal:
On due consideration of the above facts and circumstances, we dismiss this appeal of the Revenue on account of low tax effect. However, in case on re-verification of the facts at the end of the Ld. Assessing Officer, it emerges that the tax effect is more than the limit for filing the appeal or this case falls under any of the exceptions provided in the instruction, then the Revenue will be at liberty to file a
In the result, the appeal filed by the Revenue is dismissed while the Cross Objections filed by the assessee are also dismissed as withdrawn.