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Facts
The AO assessed bank deposits of Rs. 195.63 Lacs as unexplained cash credit for AY 2013-14, computing a net tax liability of Rs. 58,70,012/-. The CIT(A) annulled the assessment, noting that the reassessment notice was issued to a deceased assessee without bringing legal heirs on record. The revenue subsequently filed appeals against this annulment and the consequential penalty.
Held
The Tribunal dismissed both the quantum and penalty appeals filed by the revenue as non-maintainable. This decision was based on the net tax liability being below the Rs. 60 Lacs threshold specified by CBDT Circular No. 5/2024, indicating a low tax effect. The revenue was granted liberty to seek revival if a higher tax effect or an exception was found.
Key Issues
The key issues were the maintainability of the revenue's appeals due to low tax effect as per CBDT Circular No. 5/2024 and the validity of assessment proceedings initiated against a deceased assessee without proper representation by legal heirs, leading to the annulment of the assessment and consequential penalty.
Sections Cited
Section 147, Section 144, Section 271(1)(c), Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963
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Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
(िनधा�रणवष� / Assessment Year: 2013-14) Income Tax Officer Shri Hardev Singh बनाम/ 2nd Floor BSNL Building, (through L/H Shri Nirvair Singh) Near Overbridge, Mansa-Sirsa Road Bahadarpur, Tehsil Budhlada Vs. Mansa District Mansa. District Mansa. �थायीलेखासं./जीआइआरसं./PAN/GIR No. DLUPS-1582-P (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Shri Ramesh Kumar Jaiswal (CA) –Ld.AR ��थ�कीओरसे/Respondent by : Shri Charan Dass (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 07-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. These are quantum appeal as well as penalty appeal by revenue for Assessment Year (AY) 2013-14. The quantum appeal arises out of an order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-06-2024 in the matter of an assessment framed by Ld. AO u/s 147 r.w.s 144 of the Act on 29-03-2022. The Ld. AR, at the outset, stated that the revenue’s appeal is not maintainable on account of low tax effect which has been disputed by Ld. Sr. DR. Having heard rival submissions and upon perusal of case records, the appeal is disposed- off as under.
The Ld. AO made assessment of bank deposits for Rs.195.63 Lacs as unexplained cash credit and computed the income of the assessee. The copy of computation sheet DIN ITBA/AST/S/114/2021- 22/1041937397(1) dated 29-03-2022 is on record. Upon perusal of the same, it could be seen that Ld. AO has computed net tax liability in Row No.39 as Rs.58,70,012/-. Upon further appeal, Ld. CIT(A) observed that the assessee expired on 10-11-2017 and reassessment notice was issued on 28-03-2021 in the name of the deceased assessee without bringing on record the legal heirs. No fresh notice was issued in the name of legal heirs. Accordingly, the assessment order was annulled against which the revenue is in further appeal before us.
From the computation sheet dated DIN ITBA/AST/S/114/2021- 22/1041937397(1) dated 29-03-2022, it is quite clear that net tax liability on the assessee has been computed as Rs.58,70,012/- which is below threshold limit of Rs.60 Lacs as prescribed in latest CBDT Circular No.5/2024 dated 15-03-2024 which has superseded all the earlier circulars and the same applies to the pending appeals also. Accordingly, the appeal is not maintainable in terms of latest CBDT low tax effect circular. No exception has been shown to us. Therefore, the revenue’s appeal is liable to be dismissed as non-maintainable subject to liberty to revenue to seek revival of the appeal, in case the tax effect is found to be more or it is shown that the case falls under any of the exception. In the result, stand dismissed as non- maintainable.
Against quantum additions, Ld. AO has levied penalty u/s 271(1)(c) for Rs.58,70,012/- vide order dated 12-09-2022. Since assessment was annulled, the consequential penalty was also annulled. Aggrieved, the revenue is in further appeal before us. We find that, tax effect being less than Rs.60 Lacs, this appeal is also not maintainable on low tax effect.
Both the appeals stand dismissed as non-maintainable due to low tax effect. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.