What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal in limine, noting that the tax effect was below the threshold specified in Circular No. 3/2018 and the issue did not appear to fall under any exceptions.

The Revenue appealed against the CIT(A)'s order deleting an addition of Rs. 37 lakhs related to unexplained cash deposits. The tax effect in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeal should be entertained given the low tax effect and the applicability of CBDT Circular No. 3/2018.

DCIT vs Ghanshyam A Duby | ITAT Mumbai 2018

Income Tax Appellate Tribunal, “C” Bench, Mumbai

Before: Shri B.R. Baskaran (AM) & Shri Ramlal Negi (JM)

For Appellant: Shri Dharan V. Gandhi

For Respondent: Shri V. Vidhyadhar

Hearing: 19.7.2018Pronounced: 19.7.2018

O R D E R Per B.R. Baskaran (AM) : The appeal filed by the Revenue is directed against the order dated 27.10.2016 passed by the learned CIT(A)-11, Pune and it relates to A.Y. 2007- 08. The Revenue is aggrieved by the decision of the learned CIT(A) in deleting the addition of ` 37 lakhs relating to unexplained cash deposit.

The Learned AR submitted that the tax effect involved in this appeal is less than ` 20 lakhs and hence as per Circular No. 3/2018 dated 11.7.2018, the Revenue is precluded from pursuing this appeal.

The Learned DR, however, sought time to get certificate from PCIT/CIT concerned that the grounds urged in this appeal do not fall under any of the exception specified in the said circular. However, from the available material, learned DR could not point out that the issue contested in this appeal fall in any of the exceptions specified in the circular.

We have noticed that the tax effect involved in this appeal is less than Rs.20.00 lakhs and the issue contested herein also apparently does not fall in any of the exceptions specified in the Circular. Accordingly we dismiss the 2 Shri Ghanshyam A. Dubey appeal of the revenue in limine. However, the revenue is given liberty to move miscellaneous application seeking recall of this order, if it is found that the issue contested in this appeal falls in any of the exceptions provided in paragraph 10 of the Circular.

In the result, the appeal of the revenue is dismissed. Order has been pronounced in the Court on 19.7.2018.

DCIT CEN CIR 2, THANE vs. GHANSHYAM A DUBY, MUMBAI

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