ASSTT. C.I.T, CENTRAL CIR, -2(3), NAGPUR vs. VIDHARBHA TRADELINKS PVT. LTD., NAGPUR

PER AMARJIT SINGH, J.M.

The appeal by the Revenue and the cross objection by the

assessee are filed against the impugned order dated 14th August 2014,

2 Vidarbha Tradelinks Pvt. Ltd.

passed by the learned Commissioner (Appeals)–III, Nagpur, for the

assessment year 2008–09.

ITA no.464/Nag./2014 – Revenue’s Appeal

The ground raised by the Revenue is reproduced below:–

(1) That the order of the learned Assessing Officer u/s. 153C / 143(3) is bad in law and on facts.

(2) That the learned Assessing Officer erred in law and on facts in making addition of Rs. 20,74,000/- as undisclosed investment in Agricultural land on the basis of previous year additions. On the basis of facts and circumstances of the case and the explanations offered alongwith evidence, the action of the Assessing Officer is not justified.

(3) That the learned Assessing Officer erred in law and on facts in taking into consideration the agreement to sale found for Rs. 56,64,945/– and Rs. 32,60,400/- without appreciating that the agreements are fake agreement to impress the purchaser.

(4) That the learned Assessing Officer should have inquired about the same from the executor of the above documents.

(5) That the learned Assessing Officer erred in law and on facts in not taking into consideration the various agreements of sale of the same village by various person into consideration to arrive at the real market value.

(6) That the learned Assessing Officer erred in law and on facts in charging interest u/s. 234A, 234B, 234C and 234D of the Act.

the income under dispute is less than ` 10 lakh. We further noted that

the Central Board of Direct Taxes vide Circular No. 21/2015 dated 10th

December, 2015 file no.279 of Misc. 142/2007–ITJ(PT) has issued the

direction in supersession of the Instruction No.5/2014 dated 10th July

3 Vidarbha Tradelinks Pvt. Ltd.

2014, in pursuance with the power interested under section 268A of

the Income Tax Act, 1961, that no appeal should be filed before this

Tribunal in case tax effect does not exceed ` 10 lakh. The “tax effect”

in this regard means the difference between the tax on the total

income assessed and the tax that what have been chargeable had

such total income been reduced by the amount of income in respect of

issues against which appeal is intended to be filed. This circular further

states that tax will not include any interest thereon the chargeability of

interest itself is in dispute. We further noted that under paragraph 10

which is reproduced as under, it has been mentioned in the circular

that this instruction will apply even to the pending appeals.

“10. 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.”

under dispute does not exceed ` 10 lakh. In view of this fact, as per

the instruction, the Revenue is not supposed to press the appeal. We,

therefore, dismiss the appeal filed by the Revenue in limine without

going into the merits of the case, as, in our opinion, the circulars

issued by CBDT are binding on the Departmental Officers in view of

the provision of section 268A(1) of the Act. The said view has been

4 Vidarbha Tradelinks Pvt. Ltd.

taken by Hon’ble Supreme Court in the case of Navneet Lal Zaveri v/s

AAC, 56 ITR 198 (SC). We, accordingly, dismiss the appeal filed by the

Revenue.

dismissed.

C.O. no.19/Nag./2015 – Assessee’s Cross Objection

wish to press this cross objection to which the learned Departmental

Representative has not expressed any objection. Consequently, the

cross objection filed by the assessee is liable to be dismissed.

ordered to be dismissed.

dismissed.

Order pronounced in the open Court on 21.06.2017

Sd/- Sd/- P.K. BANSAL AMARJIT SINGH VICE PRESIDENT JUDICIAL MEMBER

NAGPUR, DATED: 21.06.2017

5 Vidarbha Tradelinks Pvt. Ltd.

Copy of the order forwarded to:

(1) The Assessee; (2) The Revenue; (3) The CIT(A); (4) The CIT, Nagpur City concerned; (5) The DR, ITAT, Nagpur; (6) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary

(Dy./Asstt. Registrar) ITAT, Nagpur