DCIT, NEW DELHI vs. SH. SHIV PRIYA, NOIDA

In the departmental appeal, Revenue challenged the deletion of addition of Rs. 33,30,000/- on account of deemed dividend u/s 2(22) (e) of the Income Tax Act.

Admittedly, the tax effect in the departmental appeal is below Rs. 10,00,000/-. According to the Board Circular No. 21/15 dated 10th December, 2015, the appeal of the department would not be maintainable before the tribunal in case the tax effect in the departmental appeal would not exceed Rs. 10,00,000/-. In view of the above circular, learned DR submitted that he would not be pressing the departmental appeal. The departmental appeal would not fall in exceptions provided in the above circular. The circular applies to pending dept. appeals as well. 4. In view of the above, the departmental appeal is not maintainable and dismissed as is filed against the board circular. 5. Learned counsel for the also seeks permission to withdraw the cross objection. He has made endorsement to that effect in the cross objection itself. Cross objection of the assessee is therefore dismissed as withdrawn. 6. In the result, the departmental appeal as well as cross objection are dismissed. Order pronounced in the open court on the 29th day of March, 2017.