ACIT, NEW DELHI vs. SHRI MAN SINGH, NEW DELHI

ITA 5109/DEL/2016Status: DisposedITAT Delhi10 October 2018AY 2012-133 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 held that the appeal of the Revenue deserved to be dismissed in terms of low tax effect as per CBDT Circular No. 3/2018. The circular was found to be binding on tax authorities and applicable retrospectively to pending appeals.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting additions made on account of unexplained jewellery and cash. The appeal was filed despite a CBDT circular directing against appeals with a tax effect below Rs. 20,00,000.

What were the issues?

The primary issue was the applicability of CBDT Circular No. 3/2018 regarding low tax effect to the pending appeal. The Tribunal also considered the merits of additions made by the AO on account of unexplained jewellery and cash.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’ : NEW DELHI

Before: SHRI R.S.SYAL, HON’BLE & SHRI LALIET KUMAR

For Appellant: Ms. Manisha Sharma, Adv

For Respondent: Shri Manoj Kumar Mahar, Sr. DR

Hearing: 10.10.2018

PER LALIET KUMAR, JUDICIAL MEMBER :

The present appeal is filed by the revenue challenged the assessee on the following grounds :-

“1. The order of the CIT(A) is not correct in law and on facts. 2. On the facts and circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 38,68,800/- made by AO on account of unexplained jewellery.

3. On the facts and circumstances of the CIT(A) has erred in holding that jewellery found from an individual during search is to be considered explained if it is less than the jewellery declared by entire family.

4. On the facts and circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 24,80,000/- made by AO on account of unexplained cash.”

As per the CBDT Circular No.3/2018 dated 11th July, 2018 2. vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.20,00,000/- and this factual position has been fairly conceded by the Ld. D.R. The Ld. A.R. contended that the appeal of the Revenue may be dismissed in the light of CBDT Circular (supra).

After perusing the materials available on record, we find that the amount disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 3/2018 dated 11.07.2018 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 3/2018 dated 11.07.2018 and the materials available on record, Ld. Sr. DR could not point out as to how and why such a Circular is not applicable to the facts of the case. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No. 3/2018 dated 11.07.2018. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case.

In the result, appeal of the revenue is dismissed. Order pronounced in open court on this 10th October, 2018.

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