ACIT,CIRCLE-2(1), RAJKOT, RAJKOT V. KETAN B BHATT, RAJKOT

ITA 436/RJT/2024

AI Insights

The case involves an appeal by the A.C.I.T., Circle-2(1), Rajkot against Ketan Balvantrai Bhatt concerning an assessment order for the year 2016-17. The appeal was directed against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which had deleted an addition of Rs.9,46,000 related to unexplained investment under Section 69 of the Income Tax Act, 1961. The Department's appeal was dismissed based on the monetary limits set by the CBDT Circular No. 09/2024, which was issued to reduce litigation by increasing the thresholds for filing appeals in various courts.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473481 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 14-10-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 20-06-2024
• 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
• Assessee Lawyers: ABHIMANYU SINGH YADAV
• Keywords: Unexplained investment; Tax effect
• Section: 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH (SMC), RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.436/RJT/2024 Assessment Year: (2016-17) (Hybrid Hearing) A.C.I.T., Circle-2(1), Rajkot. Vs. Ketan Balvantrai Bhatt, Vatsalya, Navyug Society, Nr. Rameshwar Chowk, Bh. Amrapali Cinema, Rajkot-360001. èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AKSPB 8822 H (Appellant) (Respondent) Appellant by None Respondent by Shri Abhimanyu Singh Yadav, Sr. DR Date of Hearing 14/10/2024 Date of Pronouncement 15/10/2024 आदेश / O R D E R PER DR. A. L. SAINI, AM: The captioned appeal filed by the Revenue, pertaining to assessment year 2016-17 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 30/04/2024, which, in turn, arises out of an assessment order passed by the Assessing Officer u/s143(3), r.w.s. 263 and 144B of the Income Tax Act, 1961 (in short the ‘Act’) dated 17/03/2022. 2. In this revenue’s appeal in ITA No. 436/Rjt/2024, I noticed that Revenue has raised ground in respect of addition of Rs.9,46,000/- deleted by the ld. CIT(A), which relates to unexplained investment within the meaning of Section 69 of the Act, which comes in the ambit of tax effect of CBDT Circular vide Circular No. 09/2024 dated 17.09.2024. ITA 436/Rjt/2024 ACIT Vs. Ketan Balvantrai Bhatt Page | 2 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 21/06/2024 and was within the monetary limit in the form of tax effect for filing appeals before Tribunal, however, 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 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. ITA 436/Rjt/2024 ACIT Vs. Ketan Balvantrai Bhatt Page | 3 7. In view of the above, I 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. 436/Rjt/2024 is dismissed in limine. 8. In the result, the appeal of the Revenue in ITA No. 436/Rjt/2024 is dismissed. Order is pronounced in the open court on 15/10/2024 Sd/- (Dr. A.L. SAINI) ACCOUNTANT MEMBER Rajkot *Ranjan Ǒदनांक/ Date: 15/10/2024 Copy of the Order forwarded to: 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "