ITO, New Delhi V. Sh. Parvesh Rath, New Delhi

ITA 3001/DEL/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3206 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 18-05-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 14-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Keywords: Unexplained investment; Tax effect

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SH BHAVNESH SAINI , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 3001/DEL/2013 (ASSESSMENT YEAR: 2009 - 10 ) ITO, WARD - 33(3), E - 2, ROOM NO. 1609, DR. SP MUKHERJEE CIVIC CENTRE, NEW DELHI VS. PARVESH RATH, 4/30, WEST PATEL NAGAR, NEW DELHI PAN:AFNPR6403C (APPELLANT) (RESPONDENT) REVENUE BY : SH. FR MEENA, SR. DR ASSESSEE BY: NONE DATE OF HEARING 18/05 / 2017 DATE OF PRONOUNCEMENT 18 / 05 / 2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD CIT(A) - XXVI, NEW DELHI DATED 22.02.2013 FOR THE ASSESSMENT YEAR 2009 - 10. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THE LD CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 1467000/ - MADE BY AO ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT IN BANK. 2. THE LD CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 182359/ - ON ACCOUNT OF UNEXPLAINED PURCHASE OF RS. 766061/ - MADE BY AO ON ACCOUNT OF UNSUBSTANTIATED EXPENSES. 3. THE LD CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 2444/ - MADE BY AO ON ACCOUNT OF UNEXPLAINED CASH IN HAND, RS. 3682111/ - ON ACCOUNT OF UNEXPLAINED INVESTMENT AND RS. 595000/ - ON ACCOUNT OF UNEXPLAINED LOAN AND ADVANCES GIVEN. 3. AT THE OUTSET OF THE HEARING ITSELF, THE LD. DR BROUGHT TO OUR ATTENTION THAT CBDT VIDE CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 HAS DECIDED THAT THE REVENUE WOULD NOT PREFER AN APPEAL BEFORE THE TRIBUNAL IF THE TAX EFFECT IS LESS THAN RS.10 LAKHS. T HEREFORE, HE PLEADED THAT THE APPEAL OF THE REVENUE BE DECIDED AS PER THE INSTRUCTION OF THE CBDT. LD AR ALSO REITERATED SAME FACTS. 4. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND PERUSED THE MATERIAL. WE FIND THAT THE CBDT VIDE CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL, HONBLE HIGH PAGE 2 OF 2 COURTS AND HONBLE SUPREME COURT. THE RELEVANT PARA OF THE AFORESAID CIRCULAR IS REPRODUCED AS UNDER : - 3. HENCEFORTH, APPEALS/SL PS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER : - SL.NO. APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT(IN RS.) 1. BEFORE APPELLATE TRIBUNAL 10,00,000 2. BEFORE HIGH COURT 20,00,000 3. BEFORE SUPREME COURT 25,00,000 IT IS CLARIFIED THAT AN APPEAL SHOULD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 5. WE FIND THAT THE TAX EFFECT INVOLVES IN THE APPEAL OF THE REVENUE IS BELOW RS.10 LAKHS. THERE IS NO DISPUTE THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME - TAX AUTHORITIES ARE BINDING ON THOSE AUTHORITIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/NOT PRESSED THE PRESENT APPEAL IN VIEW OF THE AFORESAID INSTRUCTION SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS.10 LAKHS. 5. IN VIEW OF THE ABOVE, CIRCULAR NO.21 DATED 10.12.2015 WILL APPLY TO ALL PENDING APPEALS. THEREFORE THE PRE CEDENT, IT IS HELD THAT THE APPEAL IS NOT MAINTAINABLE IN THE INSTANT CASE AS THE TAX EFFECT IS LESS THAN RS.10 LAKHS. ACCORDINGLY, IT IS HELD THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 6. IN THE RESULT, APPEALS FILED BY THE DEPARTMENT IS DISMISSED. ORDER PRO NOUNCED IN THE OPEN COURT ON 1 8 / 05 / 2017 . - S D / - - S D / - ( BHAVNESH SAINI ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 8 / 05 / 2017 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI