ACIT, NEW DELHI vs. MR. S. GURNAM SINGH, NEW DELHI

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ITA 2668/DEL/2013Status: DisposedITAT Delhi16 March 2016AY 2005-063 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 held that the Revenue's appeal was not maintainable as the tax effect was below the monetary limit prescribed by CBDT Circular No. 21/2015. The decision was not to be treated as a precedent if the tax effect exceeded the limit.

What were the facts?

The Revenue appealed against the deletion of an addition made on account of unexplained cash credits. The assessee argued that the appeal was not maintainable due to a low tax effect, citing a CBDT circular.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal based on the tax effect and the applicability of CBDT circulars. The Tribunal also considered the issue of unexplained cash credits.

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 ‘G’, NEW DELHI

Before: Shri C.M.Garg & Shri O.P.Kant

For Appellant: Shri Raj K. Batra, Adv
For Respondent: Smt. Neetika Khanna, Sr. DR
Hearing: 11/02/2016

PER O.P.Kant, A.M. This appeal filed by the Revenue is directed against order of Ld. CIT(A)-XXIV, New Delhi dated 20.02.2013 and pertains to assessment year 2005-06. 2. The Revenue has questioned the deletion of addition made of Rs. 24,09,460/- on account of unexplained cash credits u/s 68 of the Income Tax Act by the CIT (A) and in restricting the same to peak amount of Rs. 1,35,012/-. 3. At the outset of the hearing it was pointed out by the Ld. AR that though the assessee has got good case on merits but the appeal was also not 2 S.Gurnam Singh maintainable as having tax effect below Rs. 10,00,000/- as per the CBDT Circular no. 21/2015 dated 10.12.2015.

4.

The Ld. Sr. DR on the other hand fairly agreed that the CBDT Circular no. 24/2015 dated 10.12.2015 is applicable retrospectively, however, he submitted that withdrawing or not pressing the appeal may not be taken as precedent on the issue in dispute where tax effect exceeds the monetary limits.

5.

Considering the above submission, we agree with the preliminary objection raised by the Ld. AR that the present appeal preferred by the Revenue is having the tax effect below Rs. 10,00,000/- and it is not maintainable as the same has been preferred by the Revenue in violation of CBDT Circular no. 21/2015 dated 10.12.2015. This circular in our view is also having statutory force u/s 268(A) of the Income Tax Act, 1961 (for short ‘Act’). We thus, hold that the present appeal preferred by the Revenue is not maintainable and the same is dismissed as such. Further keeping in mind the clause 6 of the said circular, we hold that our decision on the issue in dispute in this case shall not be treated as a precedent in similar disputes in the case of same assessee for any other assessment year or in the case of any other assessee for the same or any other assessment year if the tax effect exceed the specified monetary limit.

6.

In the result appeal of the Revenue is dismissed. (Order Pronounced in the Court on 16/03/2016). Sd/- Sd/- (C.M.Garg) (O.P.Kant ) JUDICIAL MEMEBR ACCOUNTANT MEMBER Dated: 16 / 03/2016 *Binita* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

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