DCIT, CC-II, CHANDIGARH vs. M/S BHARATNET TECHNOLOGY LTD., DELHI

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ITA 1190/CHANDI/2017Status: DisposedITAT Chandigarh16 July 2018AY 2010-112 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal due to low tax effect, following CBDT circular No. 3/2018 and a Punjab & Haryana High Court decision. The dismissal does not affirm the CIT(A)'s order on merits, leaving the legal issue open.

What were the facts?

The Revenue appealed against the CIT(A)'s order for AY 2010-11. The tax effect involved was less than Rs. 20 lacs, and the Revenue raised a question of law regarding additions in the absence of incriminating material during section 153A proceedings.

What were the issues?

Whether additions can be made under section 153A in the absence of incriminating material, and if appeals with low tax effect should be dismissed.

Which sections of the Income-tax Act were involved?

Section 153A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, CHANDIGARH BENCHES, ‘A’ CHANDIGARH

Before: SHRI SANJAY GARG & Ms. ANNAPURNA GUPTA

Hearing: 16.07.2018Pronounced: 16.07.2018

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)].

2.

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

4.

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

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