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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-3’, NEW DELHI
Before: SHRI H.S. SIDHU
This appeal filed by the Department is directed against the Order dated 30.9.2015 of Ld. CIT(A)-I, New Delhi pertaining to assessment years 2006-07. 2. The grounds raised in both these appeals read as under:-
The Ld. CIT(A) has erred in deleting the addition of Rs. 18,10,0001- made by the A.O. uls 68 of the I,T. Act, 1961. Particularly when the assessee has failed to furnish any evidence to prove the genuineness of the transaction.
The Ld. CIT(A) has failed to appreciate the contradictory fact that confirmation filed by the lender MIs Ganapati Fincap Services Pvt. Ltd. shown that the assessee made the investment in the above company on 16-04-2005 and the same was returned on 04-08-2005, whereas assessee has contended that the sum was received from MIs Ganapati Fincap Services Pvt. Ltd. in lieu of sale of shares of another company namely Super Components Pvt. Ltd. on 25-03-2003.
3. The Ld. CIT(A) has failed to appreciate the 'fact that the balance of the assessee filed with Return of Income indicate Rs. 93.10 lacs as " investment in shares" whereas the one filed during the assessment proceedings shows the same as "Sundry Receivable" (Balance sheet as on 31-03-2005), which were not rebutted by CIT(A).
4. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground (s) of appeal at any time before or during the hearing of this appeal.
In this case, Notice of hearing to the assessee was sent by the Registered AD post, in spite of the same, assessee, nor its authorized representative appeared to prosecute the matter in dispute, nor filed any application for adjournment. Keeping in view the facts and circumstances of the present case and the issue involved in the present Appeal, I am of the view that no useful purpose would be served to issue notice again and again to the assessee, therefore, I am deciding the present appeal exparte qua assessee, after hearing the Ld. DR and perusing the records.
I have heard Ld. DR and perused the material on records. At the threshold, I find that the tax effect in the Revenue Appeals is less than Rs.10,00,000/-, therefore, the Department’s Appeals are not maintainable, in view of the Circular No. 21/2015 dated 10th December, 2015 issued vide F.No. 279/Misc. 142/2007-ITJ (Pt.) by the CBDT. For the sake of convenience, the relevant para nos. 3 & 10 of the aforesaid CBDT’s Circular are reproduced as under:- “3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Monetary Limit S No Appeals in Income-tax matters (in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.
This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”
It is not in dispute that the Board’s instruction or directions issued to the income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/ not pressed the present Appeal, in view of the aforesaid instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs, prescribed in the above said CBDT’s Instructions.
Keeping in view the CBDT Instruction No. 21/2015 dated 10th December, 2015, I am of the view that the Revenue should have withdrawn/ not pressed the instant appeal before the Tribunal. I am also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. 7. In the result, the Appeal filed by the Revenue stand dismissed.
Order pronounced in the Open Court on 31/8/2016.