ITO WARD-20 (3) vs. PARDUMAN KUMAR JAIN,

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ITA 190/DEL/2008Status: DisposedITAT Delhi22 June 2016AY 1999-20002 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 appeal filed by the Revenue. This was based on the CBDT Circular No. 21/2015, which revised the monetary limit for filing appeals to the ITAT to Rs. 10 lakhs and was made applicable retrospectively.

What were the facts?

The Revenue filed an appeal against the deletion of an addition of Rs. 18 lakhs made on account of accommodation entry and commission. The tax effect involved was less than Rs. 10 lakhs.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the revised monetary limits for appeals stipulated by the CBDT Circular, which are binding on tax authorities.

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: ‘F’ NEW DELHI

Before: SMT DIVA SINGH & SH.O.P.KANT

Hearing: 20.06.2016Pronounced: 22.06.2016

Date of Hearing 20.06.2016 Date of Pronouncement 22.06.2016 ORDER

PER DIVA SINGH, JM

1.

The present appeal has been filed by the Revenue assailing the correctness of the order dated 26.11.2007 of CIT(A)-XXII, New Delhi pertaining to 1999-2000 assessment year on the following grounds:

– 1. “The Ld. Commissioner of Income tax (A0 erred in law and on facts in directing the Assessing officer to delete the addition made on account of accommodation entry of Rs.18 lakhs and commission of 0.5% paid.

2. The appellant craves leave to amend or alter all or any of the aforesaid grounds of appeal and add any other ground of appeal.”

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.-190/Del/2008

3.

We have heard the submissions of the parties on this issue and perused the material on record. We 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, we dismiss the departmental appeal considering the material available on record.

4.

In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 22 June, 2016.

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