ITO, New Delhi V. Sh. Naveen Garg, New Delhi

ITA 6374/DEL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7198 (ITAT-DELHI)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 3
• Next Hearing Date: 24-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Assessee Lawyers: ASHISH GOEL
• Keywords: Unexplained cash credit; Additional evidence; Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-3, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 6374/DEL/2015 ASSESSMENT YEAR: 2009-10 ITO, WARD 40(4), VS. SH. NAVEEN GARG, NEW DELHI 3163/229 ROOM NO. 1708, CHANDER NAGAR, 17 TH FLOOR, E-2, CIVIC CENTRE, TRI NAGAR, NEW DELHI 2 NEW DELHI - 35 (PAN: AMOPG9094N)) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. F.R. MEENA, SR. DR RESPONDENT BY : SH. VED JAIN, ADV. & SH. ASHISH GOEL, ADV. DATE OF HEARING : 24-08-2016 DATE OF ORDER : 02-9-2016 ORDER PER H.S. SIDHU, J.M. THIS APPEAL FILED BY THE DEPARTMENT IS DIRECTED A GAINST THE ORDER DATED 18.9.2015 OF LD. CIT(A)-14, NEW DELHI PERTAINING TO ASSESSMENT YEARS 2009-10. 2. THE GROUNDS RAISED IN BOTH THESE APPEALS READ AS UNDER:- ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LA W, THE LD. CIT(A) HAS ERRED IN 1. DELETING THE ADDITION OF RS. 32,30,220/- MADE BY TH E AO ON ACCOUNT OF UNEXPLAINED CASH CREDITS U/S. 68 OF THE I.T. ACT, 1961. 2. ACCEPTING THE ADDITIONAL EVIDENCE AND NOT TAKING FU LL COGNIZANCE OF REMAND REPORT OF AO WHEREIN THE AO HA D CLEARLY STATED THAT NO DOCUMENTS TO SUBSTANTIVE THE SOURCE OF CASH DEPOSITS MADE BY THE ASSESSEE INTO HIS BANK AC COUNT WAS FAILED EITHER DURING THE ASSESSMENT PROCEEDINGS OR DURING THE REMAND PROCEEDINGS. ITA NO. 6374/DEL/2015 2 3. THE APPELLANT CRAVES THE RIGHT TO ADD, ALTER OR AME ND ANY GROUND OF APPEAL. 3. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MA TERIAL ON RECORD. AT THE THRESHOLD, I FIND THAT THE TAX EFFECT IN THE REVENU E APPEAL IS LESS THAN RS.10,00,000/-, THEREFORE, THE DEPARTMENTS APPEALS IS NOT MAINTAINABLE, IN VIEW OF THE CIRCULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 ISSUED VIDE F.NO. 279/MISC. 142/2007-ITJ (PT.) BY THE CBDT. FOR THE SAKE OF CONVENIENCE, THE RELEVANT PARA NOS. 3 & 10 OF THE AFORESAID CBDTS C IRCULAR ARE REPRODUCED AS UNDER:- 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMITS GIVEN HEREUNDER: S 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 MONETA RY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEA L WAS FILED. 4. IT IS NOT IN DISPUTE THAT THE BOARDS INSTRUCTIO N OR DIRECTIONS ISSUED TO THE INCOME-TAX AUTHORITIES ARE BINDING ON THOSE AUTHORI TIES, THEREFORE, THE DEPARTMENT SHOULD HAVE WITHDRAWN/ NOT PRESSED THE P RESENT APPEAL, IN VIEW OF THE AFORESAID INSTRUCTIONS SINCE THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN THE AMOUNT OF RS. 10 LACS, PRESCRIBED IN THE ABOVE SAID CBDTS INSTRUCTIONS. ITA NO. 6374/DEL/2015 3 5. KEEPING IN VIEW THE CBDT INSTRUCTION NO. 21/2015 DATED 10 TH DECEMBER, 2015, I AM OF THE VIEW THAT THE REVENUE SHOULD HAV E WITHDRAWN/ NOT PRESSED THE INSTANT APPEAL BEFORE THE TRIBUNAL. I AM ALSO OF THE VIEW THAT THE SAID INSTRUCTIONS ARE APPLICABLE FOR THE PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN TRIBUNAL. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02/9/2016. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 02/9/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR