DCIT, CIRCLE-2, PATNA vs. M/S TARAN DEVELOPERS PVT LTD, PATNA

The assessee is a Private Limited Company and engaged in the business of Civil Construction. It has filed its return of income on 30.11.2003 declaring total income at Rs.4,49,130/- and the case of the assessee was selected for scrutiny assessment and an assessment order was passed under section 144 of the Income Tax Act on 30.03.2006. In M/s. Taran Developers Pvt. Ltd., Patna other words, it was an ex-parte assessment order on the basis of best judgment of the Assessing Officer. The ld. Assessing Officer has computed the income of the assessee as under:-

Sr. No. Description Amount(Rs.) 1. Income from Business and 8,37,497 Profession (as discussed in para 4) 2. 7,00,000 Income from Other Sources (as disclosed in para 5) 3. Total Income 15,37,497 4. Total income rounded off to 15,37,497

Dissatisfied with the assessment order, the assessee carried the matter in appeal before the ld. CIT(Appeals). The ld. 1st appellate authority has allowed the appeal of the assessee by way of the impugned order. The ld. CIT(Appeals) has deleted both the additions made by the Assessing Officer.

Dissatisfied with the order of the ld. CIT(Appeals), the Revenue came in appeal before the Tribunal. This appeal was decided by the Tribunal vide its order dated 16.05.2008. The Tribunal has concurred with the ld. CIT(Appeals) with regard to deletion of addition of Rs.7,00,000/-, which was added by the Assessing Officer with the aid of section 68. However, with regard to the first addition, the Tribunal did not concur with the ld. CIT(Appeals) and reverse its finding. The Tribunal has restored the finding of the Assessing Officer qua determination of income from business and profession at Rs.8,37,497/- as against Rs.4,49,139/- disclosed by the assessee.

Dissatisfied with this Tribunal order, the assessee went in appeal before the Hon’ble High Court vide Miscellaneous Appeal No. 570 of 2008. This appeal of the assessee has been allowed by the Hon’ble High Court

The Revenue has filed an application for adjournment on the ground that this case is to be represented by the ld. Sr. D.R., who is on Election Duty. Similarly the assessee has also filed an adjournment. However, during the course of hearing on perusal of the record, we are of the view that the present appeal is not maintainable in view of the latest Circular of the CBDT, whereby it has prohibited its subordinate authorities to file appeal before the Tribunal in case tax effect is less than Rs.50 lakhs by virtue of relief granted by the ld. CIT(Appeals). Probably in 2008, Tribunal has decided the appeal on merit because total addition of Rs.15 lakhs was made and tax effect must be more than the monetary limit prescribed for challenging the order of the ld. CIT(Appeals). But today in 2022, even if we take note of the total addition of Rs.15 lakhs, even than this appeal is not maintainable though the order of the Tribunal qua confirmation of deletion of Rs.7,00,000/- has attained finality. Therefore, we did not adjourn the hearing in this appeal and it is dismissed by following the CBDT Circular No.17/2019 dated 8th August, 2019, which is applicable on all pending appeals.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open Court on February 15, 2022.