ITO, WARD- 2(3), NOIDA vs. NEPAL SINGH, GAUTAM BUDH NAGAR

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ITA 47/DEL/2018Status: DisposedITAT Delhi09 July 2018AY 2009-103 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Departmental appeal was not maintainable as the tax effect was less than Rs. 10 lakhs, and the Department did not press the appeal in view of CBDT Circular No. 21/2015. Therefore, the appeal was liable to be dismissed.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 25,79,500/- on account of unexplained investment. The CIT(A) allowed the assessee's appeal on a legal issue regarding the AO's jurisdiction. The Revenue filed an appeal before the ITAT.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the prescribed monetary limit and the Department does not press the appeal.

Which sections of the Income-tax Act were involved?

Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC” : DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 09.07.2018Pronounced: 09.07.2018

Date of Hearing : 09.07.2018 Date of Pronouncement : 09.07.2018 ORDER

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-1, Noida, dated 31.07.2017, for the A.Y. 2009-2010.

2.

In this case, the A.O. computed the income of assessee at Rs.25,79,500/- on account of unexplained investment. The Ld. CIT(A), however, on legal issue allowed the appeal of assessee because the A.O. framed the assessment

2 ITA.No.47/Del./2018 Shri Nepal Singh, Noida, G.B. Nagar.. without assuming the jurisdiction under section 143(2) of the I.T. Act, 1961.

3.

Admittedly, the tax effect in the present appeal is less than Rs.10 lakhs. Vide Circular No.21/2015 dated 10th December, 2015 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.10 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 Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. D.R. in view of the Board’s 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 and therefore, the appeal of the Department is liable to be dismissed.

3 ITA.No.47/Del./2018 Shri Nepal Singh, Noida, G.B. Nagar.. 4. In the result, appeal of the Department is dismissed.

Order pronounced in the open Court.

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