ITO, NEW DELHI vs. SH. KRISHAN SHARMA, NEW DELHI

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ITA 2741/DEL/2015Status: DisposedITAT Delhi25 July 2016AY 2010-112 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal. It noted that the tax effect involved was less than Rs. 10 lakh, which is the revised monetary limit for filing appeals before the ITAT as per CBDT Circular No. 21/2015, made applicable retrospectively.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 19,39,000/- on account of unexplained expenses. The Revenue also questioned the admission of additional evidence by the CIT(A).

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the revised monetary limits for appeals before the ITAT as per CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC-3’ NEW DELHI

Before: SMT DIVA SINGH

For Appellant: Ms. Anima Barnwal, Sr.DR
Hearing: 20.07.2016Pronounced: 25.07.2016

ORDER The present appeal has been filed by the Revenue assailing the correctness of the order dated 12.02.2015 of CIT(A)-15, Delhi pertaining to 2010-11 assessment year on the following grounds:

– 1. “Whether on the facts and circumstances of the case and in law Ld.CIT(A) has erred in admitting additional evidence without assigning any reason even as none of the conditions in Rule 46A are fulfilled by the assessee.

2. Whether on the facts and circumstances of the case and in law Ld.CIT(A) has erred in deleting addition of Rs.19,39,000/- on account of unexplained expenses.”

2. No one was present on behalf of the assessee. Considering the amount at stake for the Revenue, Ld. Sr. DR was required to address Circular No.21/2015 dated 10th December, 2015 of CBDT. Considering the same and the facts on record, the Ld. Sr. DR referring to the departmental ground, submitted that considering the tax rates for 1999-2000 AY the tax effect involved is much less than Rs.10 lakh.

I.T.A .No.-2741/Del/2015

3.

Having heard the submissions of the parties on this issue and perused the material on record. I find that the CBDT vide the aforesaid Circular dated 10.12.2015 has revised the monetary limit to Rs.10 lakh for filing the appeal by the department before Income Tax Appellate Tribunal. Para 3 of the aforesaid Circular has been made applicable vide para 10 retrospectively. Considering the settled legal precedent that the Board’s instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities, I dismiss the departmental appeal considering the material available on record.

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