ACIT, NEW DELHI vs. M/S. COMFORT NET TRADERS (I) PVT. LTD., NEW DELHI

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ITA 5573/DEL/2015Status: DisposedITAT Delhi14 August 2018AY 2008-094 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 in the Department's appeal was below the prescribed monetary limit. Following the CBDT circular, the Departmental appeal was not pressed and was dismissed. The assessee's cross-objection was also dismissed as withdrawn.

What were the facts?

The Department filed an appeal challenging the deletion of an addition on account of unexplained purchases. The assessee also filed a cross-objection. The tax effect in the Department's appeal was below the monetary limit prescribed by CBDT circular.

What were the issues?

Whether the Departmental appeal is maintainable given the tax effect and CBDT circular instructions. Whether the assessee's cross-objection should be withdrawn.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

For Appellant: Adv. &
For Respondent: DR Assessee by : Sh. Ashwani Taneja, Adv. &
Hearing: 14.08.2018Pronounced: 14/08/2018

against the order of the Ld. CIT(A)-27, New Delhi, dated 24.07.2015 for Assessment Year 2008-09.

2.

We have heard the Ld. Representatives of both the parties.

3.

In the Departmental appeal, Revenue challenged the deletion of addition of Rs. 36,85,581/- on account of unexplained purchases.

4.

Admittedly, the tax effect in the Departmental Appeal is less than Rs.20 lakhs.

Vide Circular No. 3 of 2018 dated 11.07.2018 issued by CBDT under section 268A of the I.T. Act, it has been directed that Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to the pending appeals and appeals to be filed henceforth in the Tribunal. Pending appeals below the specified tax effect may be withdrawn/not pressed. Learned Sr. D.R. in view of the above Board Circular did not press the Departmental Appeal. We may also note that the Appeal of the Department above would not fall within the exceptions provided in the Board Circular. In the result, the Departmental Appeal is not maintainable as have been filed against the instruction of the Board. The Departmental Appeal is dismissed as withdrawn/not pressed by the Learned Sr. D.R. The Ld. Counsel for the assessee seeks permission to withdraw the Cross-Objection, the same is dismissed as withdrawn.

5.

In the result, appeal of the Revenue and Cross Objection of the Assessee are dismissed.

Order pronounced in the open court on 14/8/2018

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