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Income Tax Appellate Tribunal, CHANDIGARH BENCHES, ‘A’ CHANDIGARH
Before: SHRI SANJAY GARG & Ms. ANNAPURNA GUPTA
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order dated 18.05.2017 of the Commissioner of Income Tax (Appeals)-3, Gurgaon [hereinafter referred to as CIT(A)].
At the outset, the Ld. AR has stated that tax effect involved in the present case is less than Rs. 20 lacs. The Ld. DR, however, has submitted that in this case, a question of law is involved as to whether in the assessment proceedings carried out u/s 153A of the Act in the absence of incriminating material, addition can be made over and above the income declared by the assessee. She, however, submitted that since the exclusion clause is attracted in this case, hence, CBDT circular No. 3/2018 is not applicable.
3 ita No. 1190-c-17- M/s Bharatynet Techonology, Delhi
A perusal of the above exclusions revel that there is no exclusion of the
appeals involving any law point. Hence, the issue raised in the present appeal
does not come within the purview of the exclusion clause, as noted above.
Admittedly, the tax effect involved in this appeal is less than Rs. 20 lacs.
The Hon’ble Punjab & Haryana High Court in the case of “Principal CIT of
Income Tax Vs. Surinder Kumar Singhal” ITA No 406-2016 (O&M) vide order
dated 30.1.2017 while further relying upon the decision of the Hon'ble
Supreme Court in the case of “CIT Vs. Dhanalekshmi Bank Ltd.” (2015) 373
ITR 526 (SC), has dismissed the appeal of the Revenue without going into the
merits due to low tax effect leaving the question of law open. In view of the
CBDT Circular No. 03/2018 (supra) and in the light of the above referred to
decision of the Hon'ble Jurisdictional Punjab & Haryana High Court (supra),
the present appeal of the Revenue is dismissed due to low tax effect.
It is, however, clarified that the dismissal of the above appeal shall not
be taken to be affirmation of the order of the CIT(A) on merits. The legal
issue raised by the Revenue is being left open to be adjudicated in an
appropriate case.
Order pronounced in the Open Court.
Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 16.07.2018 Rkk Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR