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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI
Before: SHRI BHAVNESH SAINI & SHRI L.P. SAHU
ORDER PER SHRI BHAVNESH SAINI, J.M. Departmental appeal as well as cross objection by the assessee are directed against the order of Ld. CIT(Appeals)-III, Delhi dated 15.12.2011 for AY 2007-08.
In this case, the AO passed the assessment order u/s 153C read with section 143(3) of the Income Tax Act, 1961 (“the Act”) dated 29.12.2010, whereby addition of Rs. 47,02,750/- was made on account of unaccounted expenses. The Ld. CIT(A) deleted the addition. However, the other grounds of appeal regarding charging of interest u/s 234B, initiation of proceedings u/s 153C of the Act were not adjudicated because of the deletion of the addition on merit.
Admittedly, the tax effect in the departmental appeal is less than Rs. 20 lakhs. Vide Circular No. 3/2018 dated 11.07.2018 issued by CBDT, it has been directed that the 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 pending appeals and appeals to be filed henceforth in Tribunals. Pending appeals below this specified tax effect may be withdrawn/not pressed. Ld. DR in view of the Board Circular above did not press the departmental appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular.
In the result, the departmental appeal is not maintainable as the appeal is filed against the Board Instructions referred to above. Therefore, the departmental appeal is dismissed as withdrawn/not pressed.
In the cross objection, the assessee stated that the Ld. CIT(A) did not adjudicate upon the other grounds of appeals i.e. charging of interest u/s 234B of the Act and initiation of proceedings u/s 153C of the Act. The cross objection is time barred by nine days. None appeared on behalf of the assessee at the time of hearing of the above matters. No application has been filed for coordination of delay in filing the cross objection beyond time. Further when substantive additions have been deleted by the Ld. CIT(A) and departmental appeal is dismissed for low tax effect, the grounds raised in the cross objection are left with academic discussion only. In view of the above discussion, the cross objection is dismissed being time barred.