DCIT (INTERNATIONAL TAXATION), NEW DELHI vs. SHRI NARESH KUMAR, NEW DELHI

(A) This appeal by Revenue is filed against the order of Learned Commissioner of Income Tax (Appeals)-43, New Delhi, [“Ld. CIT(A)”, for short], dated 29.08.2016 for Assessment Year 2010-11. Grounds taken in this appeal of Revenue are as under:

“1. Whether, in the facts and circumstances, the Ld. CIT(A) was correct in law to accept the principle of preponderance of probabilities in holding that the claim of the assessee that the entire cash deposits of Rs.81,20,000 was out of his cash-in-hand, which was drawn out from his bank account on earlier dates during the year 2009-10 and in the previous year 2008-09? 2. Whether, in the light of the law established and based on the facts and in the circumstances of the case, the Ld.CIT(A) is legally ITA No.-5551/Del/2016. Shri Naresh Kumar. justified in concluding that burden of proof cast on the assessee has been discharged and he has offered a satisfactory explanation on the source of the cash deposits of Rs.81,20,000? 3. Whether in the facts and circumstances of the case, the Ld.CIT(A) failed to enquire into the claim of the assessee and bring on record adequate justification to accept such claim in the light of the fact that assessee did not adduce any evidence of the purported investment opportunities, he was exploring and also that the assessee did not adduce evidence to the effect that such call-in- hand was duly disclosed in his wealth tax returns.

(B) At the outset, learned Authorized Representative (“Ld. AR”, for short) for the assessee brought to our notice, at the time of hearing, that tax effect in this appeal is Rs. 50,00,000/-. Both sides, [Representatives of Revenue and the Assessee] were in agreement, at the time of hearing before us, that the tax effect in the present appeal is Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated 08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum threshold limit of tax effect of filing of appeals by Revenue in Income Tax Appellate Tribunal (“ITAT”, for short) has been enhanced to Rs. 50,00,000/-. In a subsequent clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it has been clarified by CBDT that the aforesaid revised monetary limit is also applicable to all pending appeals in ITAT. As the tax effect in this appeal does not exceed the aforesaid limit of Rs. 50,00,000/-; the Ld. Sr. DR for Revenue did not press the appeal. The learned Authorized Representatives for the assessee also submitted that the appeal was not maintainable in view of the aforesaid CBDT Circular dated 08.08.2019 and 11.07.2018; and aforesaid clarification dated 20.08.2019 issued by CBDT. In view of the foregoing,

ITA No.-5551/Del/2016. Shri Naresh Kumar. this appeal is dismissed being not pressed and also being not maintainable having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated 20/08/2019.

(C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax Appellate Tribunal U/s 254(2) of Income Tax Act, 1961 seeking recall of this order and, for restoration of this appeal if it is found that appeal of Revenue is not covered by aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

(D) In the result, this appeal by Revenue is dismissed. Our decision was orally pronounced in the Open Court after conclusion of hearing on the date of hearing. Now, this written order is pronounced in Open Court on 18/10/2019.