ITAT Ahmedabad Judgments — October 2018

The Tribunal dismissed the Revenue's appeal as not maintainable due to the CBDT circular on monetary limits. The Revenue can seek restoration if the circular is inapplicable.

The Tribunal held that the Revenue's appeal was not maintainable due to low tax effect, as per CBDT Circular No. 3 of 2018. The appeal did not fall under any exemption clauses provided in the circular.

The Tribunal held that the assessee is not liable for penalty under Section 271AAA if the Revenue does not specifically inquire about the manner of deriving undisclosed income and its substantiation. The CIT(A) correctly deleted the penalty based on this principle.

The Tribunal held that the excess stock should suffer tax. However, it remanded the issue to the AO to verify if the excess stock value was already included in the closing stock, which would prevent a double addition.