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Income Tax Appellate Tribunal, MUMBAI BENCHES “B”, MUMBAI
Before: SHRI R.C. SHARMA(AM) & SHRI SANDEEP GOSAIN (JM)
filed by assessee are arising from the order of Commissioner of Income Tax (Appeals)-26, Mumbai, dated 29.04.2013 for A.Y. 2005-06.
In Revenue has taken following grounds of appeal:-
1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in directing the AO to complete the assessment by way of considering the purchase value of shares ignoring the facts that the assessee has made the transaction through M/s Mahasagar Securities Pvt. Ltd. who indulged in giving the bogus entries and also the assessee has failed to prove the genuineness of the transaction because not a single purchase has been found reflected in bank book / pass book.
2. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) order is perverse in fact by way of not considering the facts mentioned in the assessment order as well as the information provided by the Investigation wing ?.”
Before us, at the outset, ld. Authorized Representative submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the CBDT Circular No.21 of 2015 dated 10.12.2015. The ld. Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular.
3.1 We have heard the rival submissions and perused the material on record. On perusing the ground of appeal raised by the Revenue, we prima-facie find that the tax effect in this appeal is below Rs.10 lacs. As
per the announcement of Central Board of Direct Taxes (CBDT) dated 10.12.2015 (Circular No. 21 of 2015), no Department appeals are to be filed against relief given by ld. CIT(A) before the Income Tax Tribunal unless the tax effect, excluding interest exceeds Rs. 10 lacs and it further states that the instructions will apply retrospectively to the pending appeals. In the present case, since it is an undisputed fact that on the additions which are in dispute, the tax effect is less than Rs. 10 lacs and in the absence of any material on record by the Revenue to demonstrate that the issue in the present appeal is covered by exemptions specified in clause (8) of the aforesaid CBDT Circular, we are of the view that the monetary limit prescribed by the instructions of the aforesaid CBDT Circular would be applicable to the present appeal of the Department and therefore the present appeal is not maintainable on account of low tax effect.
However, in case there is any error in the computation of the tax effect involved or if for any reason, the aforesaid CBDT Circular is not applicable, it would be open to the Revenue to seek revival of the appeal. In such circumstances, we dismiss the appeal of Revenue without expressing any opinion on merits of the case.
In the result, the appeal of Revenue is dismissed.
When Revenue’s appeal is dismissed, Cross Objection arising out of same, become infructuous. So, same is dismissed.
In the result, appeal filed by Revenue and Cross Objection filed by assessee are dismissed.
Order pronounced in the open court on 21/09/2016.