ACIT CIR-2, THANE vs. NOBOKUMAR K MANNA, THANE

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ITA 1255/MUM/2013Status: DisposedITAT Mumbai09 June 2016AY 2007-083 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 appeal filed by the Revenue. This was based on a CBDT circular which stipulated that appeals with a tax effect below Rs. 10,00,000/- are not maintainable, and the tax effect in this case fell below that threshold.

What were the facts?

The Revenue appealed against an order of the CIT(A) which had significantly reduced an addition made by the Assessing Officer on account of unexplained cash credit. The assessee had not cooperated with the Assessing Officer during assessment proceedings.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal due to low tax effect, as per CBDT circulars. A secondary issue concerned the validity of the CIT(A)'s relief on unexplained cash credits despite the assessee's non-cooperation.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “B”, MUMBAI

Before: SHRI B.R.BASKARAN (AM) & SHRI RAM LAL NEGI (JM)

For Appellant: Shri. Sachidanand Dube
Hearing: 09/06/2016Pronounced: 09/06/2016

This appeal has been filed by the revenue against order dated 22/10/2012 passed by the Ld CIT(Appeals)-II, Mumbai for the assessment year 2007-08.

2.

The revenue has challenged the impugned order on following effective grounds of appeal:-

1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the appeal of the assessee and has sustained only an amount of Rs. 1 lakh against an addition made of Rs. 14,91,636/- on account of unexplained cash credit u/s 68.

2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in giving relief to the assessee despite the fact that the assessee did not co-operate or appear before the Assessing Officer during the assessment and remand proceedings. NO documents were produced for the purpose of verification of unsecured loans and the Assessing Officer was unable to verify the genuineness of loan creditors.

3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition made on the ground that old loans cannot be considered as subject matter u/s Sec. 68 of the I.T.Act, 1961.

3. At the outset, the Ld. Departmental Representative pointed out that the tax effect in this case is below Rs.10,00,000/- as the total addition made by the AO on account of unexplained cash credit u/s 68 is Rs.14,91,636/-. Hence, as per the CBDT Circular No. 21 of 2015, dated 10/12/2015, the present appeal is not maintainable.

4.

We find that the issue raised in appeal does not fall under any of the exceptions specified in para 8 of the Circular. Since, it has been specifically clarified in the Circular aforesaid that the instruction will apply retrospectively to all the pending appeals; the present appeal filed by the revenue is not maintainable. We, therefore, dismiss the same in limine.

Order pronounced in the open court on 9th June, 2016

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