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Facts
The Revenue filed an appeal against the CIT(A)'s order deleting additions related to unexplained capital, unproved unsecured loans, and disallowance of interest made by the Assessing Officer. The tax effect of this appeal was found to be less than Rs.60 lakhs, bringing it under the low tax effect category.
Held
The Tribunal dismissed the Revenue's appeal, deeming it a low tax effect appeal in accordance with CBDT Circulars Nos.5/2024 and 09/2024. A rider was added allowing the Department to seek restoration if the case falls under specified exceptions or for other valid reasons.
Key Issues
Whether the Revenue's appeal is maintainable before the Tribunal given its low tax effect, as per CBDT circulars.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI BRAJESH KUMAR SINGH
Assessee by None Department by Sh. Gireesh Kumar Kohli, Sr. DR Date of hearing 11.11.2024 Date of pronouncement 11.11.2024 ORDER PER BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER
This appeal by the Revenue is directed against the order of the Ld. CIT(Appeals)-XXVI, New Delhi, dated 09.11.2000, pertaining to Assessment Year 1997-98. 2. Grounds of appeal raised by the Department are as under:-
1. On the facts and in the circumstances of the case, ld .CIT(A) has erred in deleting addition of Rs.11,87,095/- made by the Assessing Officer on account of unexplained introduction of capital.
2. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting addition of Rs.10,07,740/- made by the Assessing Officer on account of unproved unsecured loans.
3. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting disallowance interest of Rs.44,586/- made by the Assessing Officer The 1d.CIT (A) has entertained additional evidence in the form of confirmation, bank pass book etc. in violation of provisions of Rule 46A without allowing an opportunity to the A.O.
4. The ld. CIT(A) has failed to record reasons in writing for entertaining additional evidence as per provisions of Rule 46A (2)".
2.1. On perusal of the above grounds, it was noticed that in the appeal filed by the Revenue, admittedly, has a tax less than Rs.60 lakhs and the same falls into the category of low tax effect appeals after the enhanced monetary limits of Rs.60 lacs, for which the appeal is to be filed by the Department before this Tribunal, as laid down by the CBDT vide Circular Nos.5/2024 dated 15.03.2024 and 09/2024 dated 17.09.2024. 3 In the light of the aforesaid, the appeal of the Revenue is dismissed being a low tax effect appeal with a rider that in case the issue falls in the category of exceptions to the low tax effect appeals or if there is any valid reason, the Department shall be entitled for restoration of the appeal.
In the result, the appeal filed by the department is dismissed.
Order pronounced in the open court on 11/11/2024.