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Facts
The Revenue appealed an order from the CIT(A) that deleted an addition of Rs. 64,50,000/- made by the AO. The addition was on account of accommodation entries. The assessee's AR submitted that the tax effect on the disputed additions was below Rs. 60 lakhs.
Held
The Tribunal held that the appeal fell within the purview of CBDT Circular No. 9 of 2024, which instructs not to file appeals where the tax effect is below Rs. 60 lakhs. Therefore, the appeal was dismissed.
Key Issues
Whether the appeal filed by the Revenue deserves to be dismissed on the grounds of low tax effect as per the CBDT Circular No. 9 of 2024.
Sections Cited
268A
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Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha
"ी संजय गग", "ाियक सद" एवं "ी नरे !साद िस"ा, लेखा सद" के सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं / Year : 2012-13 Income Tax Officer Hemantkumar Faljibhai बनाम/ Ward-1 Chaudhary v/s. Mehsana – 384 002 126, Sardar Vyapar Sankul Malgodown Mehsana – 384 002 "थायी लेखा सं./PAN: AAQPC 9880 L (अपीलाथ'/ Appellant) (!( यथ'/ Respondent) Assessee by : Shri Anil Kshatriya, AR Revenue by : Smt. Mamta Singh, Sr.DR सुनवाई की तारीख/Date of Hearing : 04/09/2025 घोषणा की तारीख /Date of Pronouncement: 08/09/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 27/12/2024 for Assessment Year (AY) 2012-13.
The Revenue has raised the following grounds in this appeal: “(a) The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs.64,50,000/- made by AO on account of accommodation entries received from Shri Satyajitsinh Rajendrasinh Gohil, Prop. Of Shoryaraj Enterprise, without appreciating that Shri Satyajit R. Gohil has admitted in its statement recorded on ITO vs. Hemantkumar Faljibhai Chaudhary Asst. Year : 2012-13 2 oath that he is engaged in providing accommodation entry and did no business other than book transactions.
(b) The appellant craves leave to add, alter and/or to amend all or any the ground before the final hearing of the appeal.
Before going to the merit of the case, the Authorized Representative (AR) for the assessee, at the outset, submitted that tax effect on the disputed total additions is below Rs.60 lakhs, therefore, by virtue of recent CBDT Circular No. 9 of 2024 dated 17.9.2024, Department has been instructed not to file appeal before the Tribunal, where tax effect is below Rs.60 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. Per contra, the Departmental Representative (DR) did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.60 lakhs in the assessee case. She, however, left the issue to the Tribunal to pass appropriate order in the matter.
After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than Rs.60 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed. However, it is noted that in case on re-verification at the end of the AO, if it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be ITO vs. Hemantkumar Faljibhai Chaudhary Asst. Year : 2012-13 at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.
In the result, appeal of the Revenue is dismissed due to low tax effect.
Order pronounced in the Open Court on 08 /09/2025. ( Narendra Prasad Sinha ) Judicial Member