ACIT, NEW DELHI vs. SH SANJAY GUPTA, NEW DELHI

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ITA 3832/DEL/2015Status: DisposedITAT Delhi18 December 2019AY 2009-104 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the tax effect was below the revised monetary limit for filing appeals as per CBDT Circulars. The Departmental Representative did not press the appeal.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 1,16,89,000/- made by the AO on account of unexplained credit. The tax effect in the appeal was below the threshold limit set by CBDT circulars.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to insufficient tax effect, as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

(A) This appeal by Revenue is filed against the order of Learned Commissioner of Income Tax (Appeals)-24, New Delhi, [“Ld. CIT(A)”, for short], dated 30.03.2015 for Assessment Year 2009-10. Grounds taken in this appeal of Revenue are as under:

“1. The order of Ld. CIT(A) is not correct in law and facts. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law in deleting the addition of Rs. 1,16,89,000/- made by AO on account of unexplained credit u/s 68 of the I.T. Act, 1961.

ITA No.- 3832/Del/2015. Shri Sanjay Gupta. 3. The appellant craves leave to add, amend any/ all grounds of appeal before or during the course of hearing of the appeal.”

(B) At the outset, we noticed at the time of hearing that tax effect in this appeal is below 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 for 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. In view of the foregoing, this appeal is not maintainable. Having regard to the aforesaid, the Ld. Commissioner of Income Tax (Departmental Representative) for Revenue did not press the appeal. Therefore, 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.

ITA No.- 3832/Del/2015. Shri Sanjay Gupta. (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 18/12/2019.

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