DCIT, CIRCLE-2(1)(1) AHMEDABAD, AHMEDABAD V. NAVNIRMAN CO OP BANK LTD, AHMEDABAD

ITA 1973/AHD/2024

AI Insights

The case involves an appeal by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, which had deleted an addition of Rs. 32,49,945 on account of unexplained credit under section 68 of the Income Tax Act for the Assessment Year 2016-17. The Revenue contended that the CIT(A) erred in deleting the addition without appreciating the facts, particularly the involvement of the assessee with known accommodation entry providers. However, the appeal was dismissed at the threshold due to the low tax effect as per the recent CBDT Circular.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360972 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. DHARANI NATH
• Assessee Lawyers: HEM CHHAJED
• Keywords: Set aside; Unexplained cash credit; Tax effect
• Section: 68

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “सी“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ C ” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0015ी नरे !साद िस\"ा, लेखा सद\u001b क े सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं /ITA No.1973/Ahd/2024 िनधा \u0010रण वष\u0010 /Assessment Year : 2016-17 The DCIT Circle-2(1)(1) Ahmedabad – 380 015 बनाम/ v/s. Navnirman Co-op. Bank Ltd. Navnirman Bhawan Opp. HDFC Bank Ahmedabad City Ahmedabad – 380 009 \u0014थायी लेखा सं./PAN: AABFN 2975 L (अपीलाथ'/ Appellant) (!( यथ'/ Respondent) Assessee by : Shri Hem Chhajed, AR Revenue by : Shri C. Dharani Nath, Sr.DR सुनवाई की तारीख/Date of Hearing : 13/05/2025 घोषणा की तारीख /Date of Pronouncement: 20/05/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 26/09/2024 for Assessment Year (AY) 2016-17. 2. The Revenue has raised the following grounds in this appeal: 1. \"Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) was justified in deleting the addition of Rs. 32.49,945/-on account ITA No.1973/Ahd/2024 DCIT vs. Navnirman Co-op.Bank Ltd. Asst. Year : 2016-17 2 of unexplained credit u/s 68 of the Act., without appreciating the facts of the case?\" 2. “Whether on the facts and in the circumstances of the case and in law, the Id.CIT(A) has erred in ignoring the fact that the assessee has transacted with Jignesh Shah and Sanjay Shah being accommodation entry providers?\" 3. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary.\" 4. It is, therefore, prayed that the order of Ld. CIT(A) may be set aside and that of the Assessing Officer be restored?\" 3. Before going to the merit of the cases, the Authorized Representative (AR) for the assessee, at the outset, submitted that tax effect on the disputed total additions is below Rs.60 lakhs, therefore, by virtue of recent CBDT Circular No. 9 of 2024 dated 17.9.2024, Department has been instructed not to file appeal before the Tribunal, where tax effect is below Rs.60 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. Per contra, the Departmental Representative (DR) did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.60 lakhs in the assessee case. He, however, left the issue to the Tribunal to pass appropriate order in the matter. 4. After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than Rs.60 lakhs, and therefore, keeping in view the above CBDT circular and provisions ITA No.1973/Ahd/2024 DCIT vs. Navnirman Co-op.Bank Ltd. Asst. Year : 2016-17 3 of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed. However, it is noted that in case on re-verification at the end of the AO, if it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. 5. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Open Court on 20/05/2025. Sd/- Sd/- ( Narendra Prasad Sinha ) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 20/05/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)- (NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद/DR,ITAT, Ahmedabad. 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad "