ITO, FARIDABAD vs. SMT. BHUSHAN BHATIA, FARIDABAD

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ITA 627/DEL/2014Status: DisposedITAT Delhi11 January 2016AY 2008-093 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 Department's appeal was not maintainable due to the low tax effect, as per CBDT Circular No. 21/2015. The circular mandates that appeals with a tax effect below a certain limit should not be filed or should be withdrawn.

What were the facts?

The Department appealed the deletion of additions of Rs. 7,35,000/- and Rs. 7,00,000/- made on account of unexplained cash deposits and advances. The tax effect in the appeal was less than Rs. 10,00,000/-.

What were the issues?

Whether the Department's appeal is maintainable before the Tribunal when the tax effect is below the monetary limit prescribed by the CBDT circular.

AI-generated summary — verify with the full judgment below

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

Before: SHRI H.S. SIDHU & SHRI J.S. REDDY, ACOUNTANT MEMBER

This appeal by the Department is directed against the Order dated 17.12.2013 of Ld. CIT(A)-, Faridabad pertaining to assessment year 2008-09 on the following grounds:- “

1. The Ld. CIT(A) has erred on the facts and in the circumstances of the case in deleting the addition of Rs. 7,35,000/- made on account of unexplained cash deposited in bank account, as the assessee failed to discharge its duties when onus to prove the transaction was upon the assessee.

2. The Ld.CIT(A) has erred on the facts and circumstances of the case in deleting the addition of Rs. 7,00,000/- made on account of unexplained advance received by assessee, as the assessee failed to dischrage its duties when onus to prove the transaction was upon the assessee.

3. That the appellant craves for the permission to add, delete or amend the grounds of appeal before or at the time of hearing of appeal.

2.

We have heard both the parties and perused the material on record. We find that Revenue in the Grounds of Appeal

before the Tribunal has challenged the deletion of addition of Rs. 7,35,000/- and Rs. 7,00,000/- raised vide ground no. 1 & 2, as aforesaid.

3. From the above, we find that the tax effect in the Revenue’s Appeal is less than Rs.10,00,000/-, therefore, the Department’s Appeal is not maintainable, in view of the Circular No. 21/2015 dated 10th December, 2015 issued vide F.No. 279/Misc. 142/2007-ITJ (Pt.) by the CBDT. For the sake of convenience, the relevant para nos. 3 & 10 of the aforesaid CBDT’s Circular are reproduced as under:- “3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Monetary Limit S No Appeals in Income-tax matters (in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.

10.

This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”

4.

It is not in dispute that the Board’s instruction or directions issued to the income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/ not pressed the present Appeal, in view of the aforesaid instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs, prescribed in the above said CBDT’s Instructions.

5.

Keeping in view the CBDT Instruction No. 21/2015 dated 10th December, 2015, we are of the view that the Revenue should have withdrawn/ not pressed the instant appeal before the Tribunal. We are also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. Accordingly, the Revenue’s Appeal is dismissed. 6. In the result, Appeal filed by the Revenue Stands dismissed. Order pronounced in the Open Court on 11/1/2016.

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