ACIT, CIR-1(1), RAJKOT, RAJKOT V. KRIPTON GRANITO PVT. LTD., MORBI

ITA 244/RJT/2024

AI Insights

The case involves an appeal by the Assistant Commissioner of Income-tax against Kripton Granito Pvt. Ltd., concerning the assessment year 2017-18. The appeal was directed against the order passed by the Learned Commissioner of Income Tax (Appeals), which had deleted an addition of Rs. 69,92,000 related to unexplained cash credits in the form of share capital/unsecured loan under Section 68 of the Income Tax Act, 1961. The Department's appeal was initially within the monetary limits for filing but was rendered non-maintainable due to the recent CBDT Circular No. 09/2024, which increased the monetary limits for filing appeals. The court emphasized that the Circulars issued by CBDT are binding on the Revenue, and thus, the appeal was dismissed based on the new monetary limits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 27238 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 01-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 23-04-2024
• Other Referred Cases: Commissioner of Customs vs Indian Oil Corporation Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: KAUSHALI SHAH
• Keywords: Unexplained cash credit; Tax effect
• Section: 68

Judgement Text

" Page | 1 ITA No. 244/RJT/2024 – A.Y. – 2017-18 ACIT vs. Kripton Granito Pvt. Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.244/RJT/2024 (Ǔनधा[रण वष[ / Assessment Year: (2017-18) (Hybrid Hearing) Assistant Commissioner of Income-tax Circle -1(1), Rajkot Vs. Kripton Granito Pvt. Ltd. Survey No.22/P1, At. Hirapar, Jetpar Pipali Road, Morbi, Gujarat 363642 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAGCK0898M (Assessee) (Respondent) Assessee by : Ms. Kaushali Shah, A.R. Revenue by : Shri Abhimanyu Singh Yadav, Sr.DR Date of Hearing : 01/10/2024 Date of Pronouncement : 01/10/2024 आदेश / O R D E R PER DR. A. L. SAINI, AM: The captioned appeal filed by the Revenue, pertaining to assessment year 2017-18, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short “the ld. CIT(A)/NFAC”] dated 29.02.2024, which, in turn, arises out of an assessment order passed by the Assessing Officer u/s143(3) of the Income Tax Act, 1961 (in short the ‘Act’) dated 31.12.2019. Page | 2 ITA No. 244/RJT/2024 – A.Y. – 2017-18 ACIT vs. Kripton Granito Pvt. Ltd. 2. In this revenue’s appeal in ITA No. 244/Rjt/2024, we noticed that Revenue has raised ground in respect of addition of Rs.69,92,000/- deleted by the ld. CIT(A), which relates to unexplained cash credits in the form of share capital/unsecured loan within the meaning of Section 68 of the Act which comes in the ambit of tax effect of CBDT Circular vide Circular No. 09/2024 dated 17.09.2024. 3. Recently the CBDT has issued Circular No. 09/2024 dated 17.09.2024, whereby the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court have been increased as measure for reducing Litigation. The revised monetary limits laid down in para-2 of this Circular are as follows: 1. Before Appellate Tribunal Rs. 60,00,000/- 2. Before High Court Rs. 2,00,00,000/- 3. Before Supreme Court Rs. 5,00,00,000/- 4. In the present case, the tax effect by the revenue is less than Rs.60,00,000/-. Though this appeal had been filed by the revenue on 23/04/2024 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, in view of the recent Circular of CBDT, even such appeals will be governed by the new monetary limits laid down in the CBDT Circular No.09/2024 referred to above. 5. It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of Page | 3 ITA No. 244/RJT/2024 – A.Y. – 2017-18 ACIT vs. Kripton Granito Pvt. Ltd. the statute. The appeal under consideration has certainly been filed contrary to the Circular issued by the CBDT Circular No. 09/2024 dated 17.09.2024. 6. In the event, the Revenue finds at a later point of time that the tax effect in the appeal is more than Rs.60 lakhs or despite low tax effect the appeal of the revenue is maintainable, the revenue is at liberty to move this Tribunal for recalling of this order. 7. In view of the above, we hold that the appeal filed by the Department, against the impugned order of the Ld. CIT(A), is contrary to the policy decision of the Department and as such the appeal filed by the Department in ITA No. 244/Rjt/2024 is dismissed in limine. 8. In the result, the appeal of the Revenue in ITA No. 244/Rjt/2024 is dismissed. Order is pronounced in the open court on 01/10/2024 Sd/- Sd/- (DINESH MOHAN SINHA) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER Rajkot Ǒदनांक/ Date: 01/10/2024 True Copy Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "