ITO, NEW DELHI vs. SHRI ANIL PODDAR & SONS HUF, NEW DELHI

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ITA 4302/DEL/2011Status: DisposedITAT Delhi29 March 2016AY 2002-032 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 departmental appeal, citing a CBDT circular that revised the monetary limit for filing appeals to the ITAT to Rs. 10 lakh, and this was made applicable retrospectively. The assessee's cross-objection was not pressed and was dismissed.

What were the facts?

The Revenue appealed against the deletion of additions made under Section 68 for bogus accommodation entries and cash deposits. The tax effect involved in the departmental appeal was less than Rs. 10 lakh.

What were the issues?

Whether the departmental appeal should be dismissed based on the revised monetary limit for appeals stipulated by a CBDT circular. The applicability of the circular retrospectively.

Which sections of the Income-tax Act were involved?

Section 68,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘A’ NEW DELHI

Before: SMT DIVA SINGH & SH.PRASHANT MAHARISHI

Hearing: 17.03.2016Pronounced: 29.03.2016

ORDER PER DIVA SINGH, JM The present cross appeals have been filed by the Revenue and the assessee assailing the correctness of the order dated 28.07.2011 of CIT(A)-XXIV, New Delhi pertaining to 2002-03 AY on the following grounds:-

I.T.A .No.-4302/Del/2011 1. “On the facts and circumstances 2. of the case, the CIT(A had erred in (i) deleting the addition of Rs.11,79,915/- made u/s 68 of the Income Tax Act on account of bogus accommodation entries taken by the assessee.

I.T.A .No.-4302/Del/2011 & C.O.No.384/Del/2011 (ii) deleting the addition of Rs.10,00,000/- made u/s 68 of the Income Tax Act on account of cash deposits in the bank account. The appellant craves the right to add or alter any ground of appeal

.”

2. Considering the amount at stake for the Revenue, both the parties were required to address Circular No.21/2015 dated 10th December, 2015 of CBDT. Considering the same in the facts on record, the Ld. Sr. DR fairly conceded that the departmental appeal has been filed wherein the tax effect involved is much less than Rs.10 lakh.

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. The C.O. filed by the assessee being supportive is not pressed by the assessee. Accordingly, the C.O. filed by the assessee is dismissed as withdrawn.

5. In the result, the appeals of the Revenue and the assessee are dismissed. The order is pronounced in the open court on 29th of March, 2016.

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