ACIT, NEW DELHI vs. VINOD KUMAR GARG, NEW DELHI

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ITA 6433/DEL/2015Status: DisposedITAT Delhi22 March 2016AY 2010-112 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 lakhs. The circular was made applicable retrospectively.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of additions made on account of gift received and unexplained cash deposits. The tax effect involved in the appeal was less than Rs. 10 lakhs.

What were the issues?

Whether the departmental appeal should be dismissed based on the revised monetary limit for appeals stipulated by a CBDT circular, considering the tax effect involved.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

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

Before: SMT DIVA SINGH & SH.O.P.KANT

Hearing: 10.03.2016Pronounced: 22.03.2016

Date of Hearing 10.03.2016 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 23.04.2013 of CIT(A)-17, New Delhi pertaining to 2010 – 11 assessment year on the following grounds:

– 1. “On the facts and circumstances of the case, the Ld.CIT(A) has erred in deleting the addition of Rs.8,00,000/- on account of gift received from the appellant from his relative.

2. On the facts and circumstances of the case, the Ld.CIT(A) has erred in deleting the amount of Rs.11,90,000/- on account of unexplained cash deposits to the extent of 40% of total cash withdrawals.”

2.

No one was present at the time of hearing on behalf of the assessee. Considering the amount at stake for the Revenue, the Ld.Sr.DR was 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.

I.T.A .No.-6433/Del/2015

3.

We have heard the submissions of the Ld. Sr. DR 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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