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Before: Shri Duvvuru RL Reddy & Shri S. Jayaraman
O R D E R PER BENCH: These five appeals filed by the Revenue relating same assessee are directed against the common order of the ld. Commissioner of Income Tax (Appeals)-18, Chennai dated 26.06.2019 relevant to the assessment years 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16. The only common effective ground raised by the Revenue that the Ld. CIT(A) is not correct in appreciating the evidences with respect to loan given to M/s. Quest Films of ₹.1,60,00,000/- even though a letter was found addressed to the assessee for the delay in payment of interest received by it.
At the time of hearing the ld. Counsel for the assessee has submitted that since the quantum addition of loan amount of ₹.1,60,00,000/- has been deleted by the Tribunal in block assessment, the consequential interest estimated on the addition is untenable. Moreover, it was the submission that the tax effect in the appeal filed by the Revenue is less than the monetary limit of ₹.50,00,000/- fixed by the CBDT to file an appeal by the Revenue before the Tribunal as per the CBDT Circular No. 17/2019, dated 08.08.2019. On the other hand, the ld. DR fairly conceded the submissions made by the ld. Counsel for the assessee.
We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Under para 13 of the block assessment order, the Assessing Officer made addition in the hands of the assessee towards the amount advanced to Quest Films to the extent of ₹.1,60,00,000/- as undisclosed investment of the assessee. However, we find that against the addition, vide order in I.T.(SS)A. No. 66/Chny/2007 dated 11.03.2019, the Tribunal has deleted the addition. Once the addition has been deleted by the Tribunal, the consequential levy of interest on the quantum addition is untenable and did not survive. Moreover, as rightly contended by the ld. Counsel, the tax effect in the appeals filed by the Revenue are less than the monetary limit fixed by the CBDT to file an appeal by the Revenue before the Tribunal. Being so, the Revenue authorities are precluded from filing the appeal before the Tribunal, since the tax effect is less than ₹.50,00,000/- in these appeals. Accordingly, all the appeals filed by the Revenue are dismissed as on both counts.
In the result, all the appeals filed by the Revenue are dismissed.
Order pronounced on the 31st January, 2020 at Chennai.