What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable due to low tax effect, as per CBDT Circular No. 21/2015. The tax effect was below the prescribed threshold of Rs. 10 lacs.

The Revenue appealed against an order of the CIT(A) concerning Assessment Year 2009-10. The appeal involved additions made on account of Gross Profit and unexplained cash credit.

What were the issues?

Whether the Revenue's appeal is maintainable before the Tribunal when the tax effect is below the threshold stipulated by CBDT circulars.

ITO vs Shri Sachin Mohan Singh Tundele | ITAT Indore 2017

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI CHANDRA MOHAN GARG & SHRI O.P.MEENA

Pronounced: 23.03.2017

आदेश /O R D E R

PER O.P.MEENA, ACCOUNTANT MEMBER

This appeal filed by the Revenue is directed against the order of Learned

Commissioner of Income-tax (Appeals)-I, Indore [in short CIT(A)] dated October, 03,2016

pertaining to Assessment Year 2009-10, which in turn has arisen from the order dated

passed by the ITO 2(4) Indore (in short “the AO” ) under section 143 (3) of Income Tax

Act,1961 ( in short ‘the Act’).

The ground raised by the Revenue relates to restricting addition tors 4,78,831/- on

account of Gross Profit addition and deletion of addition of Rs. 16,92,438/- made on account

of unexplained cash credit.

Shri Sachin Mohan Singh Tundele/ I.T.A. No.48/Ind/2017/A.Y.:09-10 Page 2 of 2

With respect to Revenue’s present appeal, the ld. Authorized Representative

submitted that the same needs to be dismissed on account of low tax effect in view of the

CBDT Circular No.21 of 2015 dated 10.12.2015.

The learned Sr. D.R. filed working of tax effect, according to which tax officer come

to Rs. 9,10,481/- hence, he has no objection to the facts.

We have heard and perused the material available on record. We find that prima-

facie this appeal of the Revenue is not maintainable in view of CBDT Circular No. 21/2015 in

F.No.279/Misc. 142/2007-ITJ (Pt) dated 10th December 2015, vide which it has been

provided that if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order

is below Rs. 10 lacs, then that order would not be challenged before the Tribunal in further

appeal. The Board has provided exemptions at clause (8) of the Instructions wherein it has

been provided that these Instructions will not be applicable, if vires of any provisions has

been quashed by impugned order or addition was made on some audit objections or the

addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present

case does not fall within the exemption clause and the tax is less than Rs.10 lacs. Therefore,

the present appeal is not maintainable and hence dismissed.

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

The order Pronounced in the open Court on 23.03.2017.

Sd/- Sd/- (च��मोहन गग�) (ओ.पी.मीना) �या�यक सद�य लेखा सद�य (C.M. GARG) (O.P.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER

�दनांक /Dated : 29th March, 2017/opm

THE ITO-2(4), INDORE vs. SHRI SACHIN MOHAN SINGH TUNDELE, INDORE

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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