THE DCIT, CIRCLE-1(2),, BARODA vs. SHRI PUSHPAKSINGH D. CHAVAN,, BARODA

None appeared on behalf of the assessee at the time of hearing. Therefore, we proceed to decide the appeal ex parte qua the assessee, after hearing the ld.DR and considering the material available on record.

We noticed from grounds of appeal that the Revenue has challenged two additions viz. addition of cash deposits u/s.68 of Rs.8,28,513/- and addition of expenses of Rs.19,16,922/-, and therefore, tax implication on the impugned additions would be less than Rs.10 lakhs. If that is so, appeal of the Revenue is liable to be rejected in limine in view of recent CBDT restricting filing of appeal by the Revenue where tax effect is below Rs.10.00 lakhs. When we confronted this position to the ld.DR, he did not contest, rather left to the Tribunal to decide the issue in accordance with law.

We have heard ld.DR and gone through the record and the impugned orders. We find that appeal of the Revenue, which is filed on 11.4.2014 is hit by recent CBDT instruction no.21 of 2015 dated 10.12.2015 whereby the Board has prohibited its subordinate authorities from filing of the appeal before the Tribunal against the order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.10 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present case, tax effect involved in the present disputed additions is less than Rs.10 lakhs. Therefore, the present appeal deserves to be dismissed being treated to be filed in violation of the above CBDT Instruction. It is dismissed.

It is further observed that on re-verification at the end of the AO, it came to the notice that tax effect is more or it falls within

In the result, the appeal of the Revenue is dismissed due to low tax effect.