ITO, WARD- 2(1), NOIDA vs. KULDEEP KUMAR SHARMA, GAUTAM BUDH NAGAR

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ITA 74/DEL/2018Status: DisposedITAT Delhi11 June 2018AY 2009-102 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 dismissed the Revenue's appeal based on CBDT Circular No. 21/2015, which mandates not filing appeals where the tax effect is below Rs. 10 Lacs. No exceptions applied in this case.

What were the facts?

The Assessing Officer made an addition of Rs. 18,65,000/- on account of unexplained money. The CIT(A) deleted this addition, citing a lack of notice under Section 143(2). The Revenue appealed this deletion.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect as per CBDT circular, despite the merits of the addition.

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 BENCH “SMC”, NEW DELHI

Before: SH.BHAVNESH SAINI

Hearing: 11.06.2018Pronounced: 11.06.2018

PER BHAVNESH SAINI, JUDICIAL MEMBER

1.

This appeal by the Revenue has been directed against the order of Ld.CIT(A)-1, Noida dated 30.06.2017 for AY 2009-10. In this case, the AO made an addition of Rs.18,65,000/- on account of unexplained money deposited in the bank account. Ld.CIT(A) deleted the addition because no notice u/s 143(2) of the Income Tax Act, 1961 (in short “Act”) has been served upon the assessee.

2.

I have heard Ld. Representatives of both the parties.

3.

Admittedly the tax effect in the departmental appeal is less than Rs.10 Lacs. According to CBDT Circular No.21/2015 vide dated 10.12.2015, it is directed that Department shall not file appeal before Tribunal in cases where the tax effect does not exceed monetary limit of Rs.10 Lacs and that this instruction will apply retrospectively to pending appeals and appeals to be filed, henceforth in Tribunal. It is further directed that the appeals filed against the instruction may be withdrawn or not pressed. In para 8, certain exceptions have been provided in which the Department could context the issue in merit.

However, no exception is applicable to the present case. In view of the above, I am of the view that since the departmental appeal has been filed against the above instruction of the Department, therefore, same is dismissed.

4.

In the result, the appeal of the Department is dismissed.

Order pronounced in the open court.

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