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Facts
The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 1,72,54,000/- made on account of unexplained cash investment for Assessment Year 2015-16. The addition was based on incriminating material, including excel sheets detailing cash payments and land purchases, found during a search on the assessee, JBM Corporate Services Pvt. Ltd. The Revenue presented five grounds of appeal challenging the CIT(A)'s decision.
Held
The Income Tax Appellate Tribunal dismissed the Revenue's appeal. It found that the tax effect in the case was below the enhanced monetary limit of Rs. 60 lacs, as per CBDT Circular No. 09/2024 dated 17/09/2024. Consequently, the appeal was deemed not maintainable as per the circular, and the Tribunal did not delve into the merits of the case.
Key Issues
Whether the Revenue's appeal before the ITAT was maintainable given the tax effect was below the monetary limits prescribed by CBDT Circular No. 09/2024.
Sections Cited
None
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Income Tax Appellate Tribunal, DELHI BENCH: ‘C’: NEW DELHI
Before: SHRI PRADIP KUMAR KEDIA & SHRI SUDHIR PAREEK
ORDER PER SUDHIR PAREEK, JM
This appeal by the Revenue is preferred against the order dated 08.03.2024 passed by the Learned Commissioner of Income Tax (Appeals)-28, (hereinafter referred to as [‘Ld. CIT(A)’]New Delhi- 110055, pertains to Assessment Year 2015-16, on the following grounds of appeal:
ITA No.-2799/Del/2024 JBM Corporate Services Pvt. Ltd.
“1. Whether on facts and in circumstances of the case, Ld.CIT(A) is legally justified in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/-, without appreciating the fact that incriminating material in the form of hard disk in which details of certain properties maintained in excel sheet have been found in which details of various cash payment mentioned was found during the course of search on assessee.
2. Whether on facts and in circumstances of the case, Ld.CIT(A) is legally justified in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/-, without appreciating the fact that incriminating material in the form of excel format have been found in which details of registry of land at Daslana was found during the course of search on assessee.
3. Whether on facts and in circumstances of the case, Ld. CIT(A) is legally justified in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/--, without appreciating the fact that incriminating material in the form of excel sheet contain details viz. survey no., area of meter, name of the seller, name of the purchase company of JBM group etc. As per these details JBM Corporate Services Ltd. had purchased total 83061 sqm. Land which was registered in the month of January & February 2015.
Whether on facts and in circumstances of the case, Ld.CIT(A) is justified in holding that the cash transactions are made first, since cheque payments are made at the time of any agreement/contract and also to ensure safety of the amount to be received. by the seller, even when the general practice in land deals is that the cash payments are made at the time of registration of the land so as to protect the interests of both the buyer and the seller of the land and not at the time of agreement/contract.
Whether on facts and in circumstances of the case, Ld.CIT(A) has erred in deleting the addition on account of unexplained cash investment of Rs. 1,72,54,000/-, even when the AO has expressly mentioned in the assessment order that the assessee failed to factually substantiate its claim that the assessee has not purchased land from Vedehi Synthetic Ltd and has not incurred any unaccounted investment and also that the agreement got cancelled and amount given to Vedehi Synthetic Ltd was received back.”
At the outset, it is noted that tax effect in this case is below the limit fixed by the CBDT for filing appeal before the ITAT. The tax effect in dispute in the captioned appeal stated to be below the enhanced monetary limit of Rs. 60 lacs, specified in the CBDT
ITA No.-2799/Del/2024 JBM Corporate Services Pvt. Ltd. Circular No. 09/2024 dated 17/09/2024, in which specifically clarified that the revised monetary limits are applicable to pending appeals also, therefore, the present appeal filed by the Revenue is not maintainable in the light of the abovecited CBDT Circular No.
09 of 2024 dated 17/09/2024. So, without going into the merits of the case, present appeal is deemed to be withdrawn. The learned DR has not referred to any material which would show that the captioned appeal is protected by any exception. So, the appeal filed by the revenue is liable to be dismissed accordingly as filing of this appeal is not in consonance with the relevant CBDT Circular.
Consequently, the appeal of Revenue is hereby dismissed accordingly.
Order Pronounced in the Open Court on 14.11.2024