ITO, W-1, BARNALA vs. SH. AVTAR SINGH, BARNALA

According to Circular No. 03/2018 dated 11/07/2018, the CBDT in supersession of earlier instructions has directed that department’s appeals before ITAT shall not be filed in cases where the tax effect does not exceed the monetary limit of Rs. 20 lacs. The tax will not include any interest thereon. It is further clarified that if in the case of an assessee, disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of disputed issues exceeds the monetary limit so specified.

Admittedly, in the departmental appeals, the tax effect is less than Rs. 20 lacs, therefore, departmental appeal is not maintainable. The Ld. DR could not bring to our notice any exceptions mentioned in the said Circular.

In view of the above, appeal of the Revenue is dismissed.

Regarding the Cross Objection, the assessee has taken only one effective ground for the first time before us which reads as under: “ That the Ld. CIT(A) has wrongly upheld the addition of bank deposit by way of cheques & draft without appreciating the fact that the case has been selected under scrutiny to verify the cash deposit exceeding Rs. 10 Lakhs in bank account of assessee & therefore the verification of bank deposit other than cash was not within the scope of Assessing Officer.”

As a result, the appeal of the Revenue is dismissed and Cross Objection of the Assessee is allowed for statistical purposes.