DCIT CENTRAL CIRCLE 2(4), CHENNAI vs. A.VIVEKANANDAN, CHENNAI

The Revenue filed this appeal against the order of the learned Commissioner of Income Tax (Appeals)-18, Chennai in 18 dated 12.07.2018 for the assessment year 2005-06.

Shri A.Vivekanandan, the assessee, is an individual. While making the assessment for the assessment year 2005-06, the Ld.AO made addition of Rs.22,00,000/- as unexplained investment U/s.69 of the Income Tax Act, 1961. Aggrieved, the assessee filed an appeal before the CIT(A). The Ld.CIT(A) allowed the appeal. Aggrieved against that order, the Revenue filed this appeal before this Tribunal.

At the time of hearing, the Ld.AR submitted that the tax effect is below Rs.20 lakhs and hence the Revenue’s appeal would be covered by the CBDT Circular No.3/2018 dated 11.07.2018, fixing the monetary limit of Rs.20 lakhs. The Ld.DR on verification admitted that the tax effect involved in the appeal is less than Rs.20 lakhs.

On hearing both sides, we find that the tax effect in this case is less than Rs. 20 lakhs. The CBDT in its Circular No. 3/2018 dated 11.07.2018 instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than Rs. 20 lakhs. This Tribunal is of the considered opinion that this circular of CBDT is binding on the officers of the Department. Therefore, the Revenue cannot proceed further in this appeal. Accordingly, the appeal stands dismissed.

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