ITO, NEW DELHI vs. SHRI AMIT BANSAL, NEW DELHI

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ITA 5446/DEL/2012Status: DisposedITAT Delhi22 March 2016AY 2008-092 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. The Tribunal noted that the CBDT circular revising the monetary limit for filing appeals to Rs. 10 lakh was applicable retrospectively and binding on the authorities.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting an addition of Rs. 10,38,000/- made on account of unexplained cash deposits. The appeal was filed despite the tax effect being less than the revised monetary limit set by CBDT circular.

What were the issues?

Whether the departmental appeal is maintainable given the tax effect is below the revised monetary limit prescribed by the CBDT circular, and if the circular applies 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: 21.03.2016Pronounced: 22.03.2016

Date of Hearing 21.03.2016 Date of Pronouncement 22.03.2016 ORDER

PER DIVA SINGH, JM

1.

The present appeal has been filed by the Revenue assailing the correctness of the order dated 24.08.2012 of CIT(A)-XXX, New Delhi pertaining to 2008-09 assessment year on the following grounds:

– 1. “On the facts and in the circumstances of the case, The Ld.CIT(A) has erred in deleting the addition of Rs.10,38,000/- as rightly made by the AO on account of unexplained cash deposits u/s 68 of the I.T.Act which remained unexplained.

2. The appellant craves the right to alter, amend, add or substitute the grounds of appeal.

2. At the time of hearing, an adjournment petition was moved on behalf of the assessee which was rejected. Ld. Sr. DR, Mr.K.K.Jaswal was required to address the maintainability of the departmental appeal in view of the latest 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.

I.T.A .No.-5446/Del/2012

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.

In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 22nd March, 2016.

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