SHRI MOHAN KUMAR LILA, Bhopal V. THE ACIT 1(2), Bhopal

ITA 674/IND/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6304 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-04-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 03-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N D PATWA S
• Keywords: Unexplained investment; Search and seizure; Audit objection; Retrospective amendment; Question of law; Tax effect
• Section: 260A; 12A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO. 674/IND/2014 A.Y. : 2011-12 SHRI MOHAN KUMAR LILA, ACIT, 1(2), 64, MALVIYA NAGAR, VS BHOPAL BHOPAL APPELLANT RESPONDENT I.T.A.NO. 678/IND/2014 A.Y. : 2011-12 ACIT, SHRI MOHAN KUMAR LILA, 1(2), VS BHOPAL BHOPAL APPELLANT RESPONDENT PAN NO. ABCPL7638N APPELLANTS BY : SHRI ASHISH GOYAL AND SHRI N. D. PATWA, ADVOCATES RESPONDENT BY : SHRI RAJIV VARSHANE, CIT DR SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 2 2 O R D E R PER D.T.GARASIA, J.M. APPEAL BY THE ASSESSEE AND DEPARTMENT ARE DIRECTED AGAINST THE ORDER OF CIT(A)-I, BHOPAL DATED 22.08.2 014 FOR THE ASSESSMENT YEAR 2010-11. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER :- 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S AN INDIVIDUAL DERIVING INCOME AS DIRECTORS SALARY FRO M M/S. LILASONS BREWERIES LTD., INCOME FROM HOUSE PROPERTY , INTEREST ON DEPOSITS AND INTEREST ON SAVING BANK ACCOUNT. IN THIS CASE, SEARCH AND SEIZURE OPERATIONS U/S. 132(1) WERE CARR IED OUT ON 28.10.2010 AT THE PREMISES OF THE APPELLANT. THE AS SESSEE HAD FILED REGULAR RETURN FOR A.Y. 2011-12 ON 28.03. 2012 DECLARING INCOME OF RS. 1,41,62,380/- WHICH INCLUDED THE INCOME SURRENDERED OF RS. 1,00,00,000/- MAINLY ON A CCOUNT OF UNACCOUNTED CASH, GOLD AND SILVER JEWELLERY FOUND A ND SEIZED DURING THE COURSE OF SEARCH. DATE OF HEARING : 06 . 0 4 .2016 DATE OF PRONOUNCEMENT : 06 .0 4 .2016 SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 3 3 4. DURING THE COURSE OF SEARCH AND SEIZURE OPERATIONS, AT THE RESIDENCE OF THE ASSESSEE AND IN THE LOCKER FOL LOWING ORNAMENTS AND JEWELLERY WERE FOUND: S.NO. PLACE GOLD (IN RS.) SILVER (IN RS.) TOTAL (IN RS.) 1. FOUND AT RESIDENCE 64, MALVIYA NAGAR, BHOPAL 39,17,633 5,45,337 44,62,970 2. FOUND AT LOCKER NO. 264, DENA BANK, TT NAGAR, BHOPAL 27,72,030 NIL 27,72,030 TOTAL (RS.) 66,89,663 5,45,337 72,35,000 THE ASSESSEE SURRENDERED AN AMOUNT OF RS. 8,43,560/ - AS UNEXPLAINED INVESTMENT IN GOLD JEWELLERY (DIAMOND SE TS) AND RS. 84,897/- ON ACCOUNT OF UNEXPLAINED INVESTMENT I N SILVER ITEMS TOTALLING TO RS. 9,28,457/- WHICH WAS DECLARED IN THE RETURN OF INCOME FURNISHED. THE BALANCE JEWELLERY O F GOLD REMAINED AT RS. 58,46,103/- [RS. 66,89,663- RS. 8,4 3,560]; AND OF SILVER REMAINED AT RS. 4,60,440/- [RS. 5,45, 337 - RS. 84,897]. DURING ASSESSMENT PROCEEDINGS, THE AO ASKED THE ASS ESSEE TO EXPLAIN THE SOURCE OF ACQUISITION OF THE ABOVE MENT IONED JEWELLERY FOUND DURING THE COURSE OF SEARCH. THE AS SESSEE BROADLY MADE TWO SUBMISSIONS: SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 4 4 (A) THE JEWELLERY FOUND, BELONGED TO OTHER FAMILY MEMBE RS, (WHICH WAS FOUND FROM THEIR POSSESSION) WHO ARE SEPARATE INCOME-TAX ASSESSEES FILING THEIR INCOME- TAX RETURNS SEPARATELY AND THEREFORE, NO ADDITION IN HA NDS OF ASSESSEE CAN BE MADE. (B) THE JEWELLERY FOUND, WAS MUCH BELOW THE LIMITS DECLAR ED IN THE VDIS RETURNS EARLIER. 5. THE LD AO DID NOT ACCEPT THE SUBMISSION OF THE ASSE SSEE AND MADE THE ADDITION OF RS. 63,06,593/- ON ACCOUNT OF UNEXPLAINED INVESTMENT IN JEWELLERY FOUND DURING TH E COURSE OF SEARCH. AND MADE THE ADDITION. THE RELEVANT FIND INGS OF THE LD AO IN THE ASSESSMENT ORDER ARE AS UNDER: - 10.2 THE EXPLANATION OF THE ASSESSEE HAS BEEN CONSIDERED AND FOUND NOT ACCEPTABLE BECAUSE THE ASSESSEE HAS NOT SUBMITTED ANY ITEM WISE DETAILS OF THE JEWELLERY AND ALSO THE ITEMS OF JEWELLERY FOUND DUR ING THE COURSE OF SEARCH WERE NOT TALLIED WITH THE ITEM S OF JEWELLERY IN THE VDIS DISCLOSURE. FURTHER, THE ASSE SSEE HAS NOT SUBMITTED ANY PROOF WHICH COULD SUBSTANTIAT E SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 5 5 THE ASSESSEES CLAIM THAT THE JEWELLERY FOUND DURIN G THE COURSE OF SEARCH ARE THE SAME ONE WHICH ARE DECLARE D IN THE VDIS DISCLOSURE. HOWEVER, OUT OF THE TOTAL JEWELLERY FOUND OF RS. 72,35,000, THE ASSESSEE HAS SURRENDERED RS. 9,28,457/- ON ACCOUNT OF JEWELLERY AND SAID SURRENDER IS INCLUDED IN THE TOTAL SURRENDERED INCOME OF RS. 1,00,00,000/- BY POINTING OUT SPECIFI C ITEMS OF JEWELLERY. THUS, CREDIT FOR SURRENDERED IN COME OF RS. 9,28,457/- ON ACCOUNT OF JEWELLERY IS ALLOWE D TO THE ASSESSEE. HENCE, ADDITION OF RS. 63,06,543/- (72,35,000/- MINUS RS. 9,28,457/-) FOR JEWELLERY FO UND DURING THE COURSE OF SEARCH IS MADE TO THE TOTAL IN COME OF THE ASSESSEE FOR A.Y. 2011-12 BEING JEWELLERY ACQUIRED FROM THE UNDISCLOSED SOURCES. 6. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CI T(A) HAS ALLOWED THE CLAIM BY OBSERVING AS UNDER :- 3.4 I HAVE CAREFULLY CONSIDERED THE SUBMISSION OF THE APPELLANT AND FACTS OF THE CASE. THE APPELLANTS MA IN CONTENTION IS THAT JEWELLERY FOUND DURING THE COURS E OF SEARCH BELONGS TO ALL THE FAMILY MEMBERS RESIDING I N THE SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 6 6 HOUSE AS THE SAME WAS FOUND IN THE BED ROOMS OF DIF FERENT PERSONS. IT IS ALSO THE CONTENTION OF THE APPELLANT THAT THE MEMBERS OF THE FAMILY HAD DECLARED JEWELLERY IN VDI S AND AFTER SELLING SOME JEWELLERY IN SUBSEQUENT YEARS, T HE BALANCE WAS REFLECTED IN THEIR BALANCE SHEETS. HOWE VER, ON EXAMINATION OF FACTS OF THE APPELLANT, THE SUBMISSI ON OF THE APPELLANT IS NOT FOUND TO BE ACCEPTABLE IN TOTALITY . THE APPELLANT OR HIS WIFE HAD NOT FILED ANY WEALTH TAX RETURNS FOR THE RELEVANT PERIODS DISCLOSING THE AVAILABILIT Y OF THE JEWELLERY IN HER HANDS. IT MAY BE NOTED THAT THE AP PELLANT HAD HIMSELF DECLARED SOME INVESTMENTS IN THE JEWELL ERY AS UNEXPLAINED FROM UNDISCLOSED SOURCES. HOWEVER, IT CANNOT BE SAID THAT THE TOTAL JEWELLERY FOUND DURING THE C OURSE OF SEARCH WAS UNEXPLAINED. IT IS A NORMAL CUSTOM IN IN DIA THAT A WOMAN RECEIVES JEWELLERY ON HER MARRIAGE AND ON OTHER OCCASIONS SUCH AS BIRTH OF CHILD ETC. IT IS A LSO A FACT THAT THERE IS NO YARDSTICK TO ASCERTAIN THE QUANTIT Y OF JEWELLERY AS REASONABLE IN THE HANDS OF WOMAN AND O THER FAMILY MEMBERS, WHICH DEPENDS ON THE CUSTOMS AND STATUS OF THE FAMILY. IN THESE CIRCUMSTANCES, REFER ENCE CAN SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 7 7 BE MADE TO THE GUIDELINES VIDE INSTRUCTION NO.1916 DATED 11.05.1996 ISSUED BY THE BOARD (CBDT) REGARDING SE IZURE OF JEWELLERY AND ORNAMENTS IN THE COURSE OF SEARCH. THE ABOVE REFERRED INSTRUCTION READS AS UNDER :- INSTRUCTION NO. 1916 DATED 11.05.1994 : INSTANCES OF SEIZURE OF JEWELLERY OF SMALL QUANTITY IN COURSE OF OPERATIONS UNDER SECTION 132 HAVE COME TO THE NOTICE OF THE BOARD. THE QUESTION OF A COMMON APPROACH TO SITUATIONS WHERE SEARCH PARTIES COME ACROSS ITEMS OF JEWELLERY, HAS BEEN EXAMINED BY THE BOARD AND FOLLOWING GUIDELINES ARE ISSUED FOR STRIC T COMPLIANCE. (I) IN THE CASE OF A WEALTH-TAX ASSESSEE, GOLD JEWELLERY AND ORNAMENTS FOUND EXCESS OF THE GROSS WEIGHT DECL ARED IN THE WEALTH-TAX RETURN ONLY NEED TO BE SEIZED. (II) IN THE CASE OF A PERSON NOT ASSESSED TO WEALTH-TAX GOLD JEWELLERY AND ORNAMENTS TO THE EXTENT OF 500 G MS. PER MARRIED LADY, 250 GMS. PER UNMARRIED LADY AND 100 G MS PER MALE MEMBER OF THE FAMILY NEED NOT BE SEIZED. SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 8 8 (III) THE AUTHORIZED OFFICER MAY, HAVING REGARD TO THE STATUS OF THE FAMILY AND THE CUSTOM AND PRACTICES O F THE COMMUNITY TO WHICH THE FAMILY BELONGS AND OTHER CIRCUMSTANCES OF THE CASE, DECIDE TO EXCLUDE A LARG E QUANTITY OF JEWELLERY AND ORNAMENTS FROM SEIZURE. T HIS SHOULD BE REPORTED TO THE DIRECTOR OF INCOME- TAX/COMMISSIONER AUTHORIZING THE SEARCH AT THE TIME OF FURNISHING THE SEARCH REPORT. (IV) IN ALL CASES, A DETAILED INVENTORY OF THE JEWELLERY AND ORNAMENTS FOUND MUST BE PREPARED TO BE USED FOR ASSESSMENT PURPOSES. FROM THE ABOVE INSTRUCTION, IT IS CLEAR THAT GOLD J EWELLERY AND ORNAMENTS TO THE EXTENT OF 500 GMS PER MARRIED LADY, 250 GMS PER UNMARRIED LADY AND 100 GMS PER MALE MEMBER OF THE FAMILY NEED NOT TO BE SEIZED. THE BOA RDS INSTRUCTION FURTHER CLARIFIED THAT HAVING REGARD TO THE STATUS OF THE FAMILY AND THE CUSTOM AND PRACTICES OF THE SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 9 9 COMMUNITY TO WHICH THE FAMILY BELONGS, IT CAN BE DE CIDED TO EXCLUDE A LARGER QUANTITY OF JEWELLERY AND ORNAMENT S FROM SEIZURE. IT MAY BE NOTED THAT VARIOUS COURTS HAVE HELD THAT THE BOARDS INSTRUCTION NO.1916 IS ALSO RELEVANT IN CON SIDERING THE ASSESSEES EXPLANATION REGARDING JEWELLERY FOUN D DURING THE COURSE OF SEARCH FOR ASSESSMENT OF TOTAL INCOME. IN THIS REGARD, REFERENCE CAN BE MADE TO THE DECISI ON OF HONBLE GUJARAT HIGH COURT IN THE CASE OF KAILASHBEN MANHARLAL CHOKSHI VS. CIT (2010) 328 ITR 411 (GUJ.) , WHEREIN IT WAS HELD THAT THE BOARDS INSTRUCTION IS ALSO RELEVANT IN CONSIDERING THE ASSESSEES EXPLANATION REGARDING THE JEWELLERY FOUND DURING THE COURSE OF SEARCH. THE HONBLE HIGH COURT OBSERVED IN THIS CASE AS UND ER : SO FAR AS THE ADDITION ON ACCOUNT OF GOLD ORNAMEN T TO THE TUNE OF RS. 1 LAKH IS CONCERNED THE ASSESSEE HAS GI VEN THE EXPLANATION THAT WAS REPRODUCED BY THE ASSESSING OF FICER IN HIS ASSESSMENT ORDER WHICH SAYS THAT DURING THE COURSE OF SEARCH AND SEIZURE PROCEEDING, STATEMENT OF THE SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 10 10 ASSESSEES WIFE, SMT. KAILASHBEN CHOKSHI WAS RECORD ED AND ACCORDING TO WHICH SHE HAD RECEIVED ABOUT 25 TO TALS OF GOLD EACH FROM HER PARENTS AND FROM HER PARENTS- IN-LAW SIDE AT THE TIME OF HER MARRIAGE IN THE YEAR 1960. SHE HAD GIVEN 15 TOTALS OF GOLD ORNAMENTS TO HER DAUGHTER R ITABEN AT THE TIME OF HER MARRIAGE IN THE MONTH OF MARCH, 1988. IF THE TOTAL JEWELLERY FOUND DURING THE COURSE OF SEAR CH IS TAKEN INTO CONSIDERATION, IN THE LIGHT OF THE INSTRUCTIONS ISSUED BY THE BOARD, ANY MIDDLE CLASS INDIAN FAMILY MAY BE HAVING JEWELLERY AND GOLD ORNAMENTS TO THAT EXTENT. HENCE, NO ADDITION CAN BE MADE ON THAT COUNT. EVEN IF THE BOARD CIRCULAR MAY NOT HAVE RETROSPECTIVE OPERATION, LOOKING TO THE QUANTU M OF HOLDING AND THE ASSESSEES EXPLANATION, WE ARE OF T HE VIEW THAT THIS IS A NORMAL HOLDING WHICH CAN BE FOU ND IN ANY MIDDLE CLASS INDIAN FAMILY AND HENCE NO ADDITIO N COULD HAVE BEEN JUSTIFIED ON THAT COUNT. SIMILAR VIEW WAS ALSO EXPRESSED BY THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF SMT. PATI DEVI SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 11 11 VS. INCOME-TAX OFFICER (1999) 240 ITR 0727 (KAR.) IN THE CASE OF ASHOK CHADDHA VS. ITO (2011) 14 TAXMAN.COM 57 (DELHI), THE HONBLE DELHI HIGH COURT CONSIDERED THE POSSESSION OF JEWELLERY OF 906.900 GMS BY A WOMEN IN A MARRIED LIFE OF 25 YEARS IN THE FORM OF STRIDHAN AND RECEIVED ON OTHER OCCASION AS REASONABLE. THE HONBLE HIGH COURT HELD AS UNDER (HEAD NOTES) :- SECTION 69A OF THE INCOME-TAX ACT, 1961 UNEXPLAINED MONEYS ASSESSMENT YEAR 2006- 07 DURING A SEARCH AT ASSESSEES RESIDENTIAL PREMISES, 906.900 GMS JEWELLERY WAS FOUND FROM ASSESSEE ASSESSEE EXPLAINED THAT HE WAS MARRIED 25 YEARS BACK AND JEWELLERY WAS RECEIVED BY HIS WIFE IN FORM OF STREE DHAN OR ON OTHERS OCCASIONS SUCH AS BIRTH OF A CHILD, ETC. ASSESSING OFFICER ACCEPTED ONLY 400 GMS OF JEWELLERY AS EXPLAINED AND TREATED 506.900 SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 12 12 GMS OF JEWELLERY AS UNEXPLAINED AND, ACCORDINGLY, MADE ADDITION UNDER SECTION 69A WHETHER COLLECTING JEWELLERY OF 906.900 GMS BY A WOMAN IN A MARRIED LIFE OF 25 YEARS IN FROM OF STREET DHAN OR ON OTHER OCCASIONS IS ABNORMAL HELD, NO WHETHER THEREFORE, ASSESSING OFFICER WAS UNJUSTIFIED IN TREATING ONLY 400 GMS AS REASONABLE AND TREATING REMAINING JEWELLERY AS UNEXPLAINED HELD, YES WHETHER, THEREFORE, ADDITION MADE WAS TO BE DELETED HELD, YES [N FAVOUR OF ASSESSEE] IT MAY BE NOTED THAT IN THE BEDROOM OF SMT. SARBATI DEVI LILA, MOTHER OF THE APPELLANT, GOLD JEWELLERY GROSS WEIGHT 319.040, NET WEIGHT 312.240 VALUING AT RS. 5,70,860/- AND SILVER WEIGHING NET WEIGHT 1200 GMS. VALUED AT RS. 98,340/- WERE FOUND. CONSIDERING THE STATUS AND AGE OF SMT. SARABATI DEVI LILA, THE GOLD JEWELLERY WEIGHING 312.240 GMS VALUING AT RS. 5,70,860/- AND SILVER SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 13 13 JEWELLERY OF 1200 GMS VALUED AT RS. 98,430/- WAS REASONABLE AND CAN BE TREATED AS HER OWN JEWELLERY AS STIRDHAN. THEREFORE, NO ADDITION WAS CALLED FOR ON ACCOUNT OF INVESTMENTS IN GOLD JEWELLERY WEIGHING 312.240 GMS VALUED AT RS. 5,70,860/- AND SILVER JEWELLERY WEIGHING 1200 GMS VALUED AT RS. 98,340/-. HENCE THE ADDITION ON ACCOUNT OF UNEXPLAINED INVESTMENT IN GOLD JEWELLERY TO THE EXTENT OF RS. 5,70,860/- AND IN SILVER OF RS.98,340/- OF THE JEWELLERY FOUND IN THE BED ROOM OF SMT. SARBATI DEV I LILA IS DELETED. AS REGARDS THE SILVER JEWELLERY FOUND WEIGHING NET 16070 GMS VALUED AT RS. 446997/- IN THE BED ROOM OF SMT. USHA LILA AND SHRI MOHAN LILA THE APPELLANT , IT IS NOTICED THAT SMT. USHA LILA HAD PURCHASED SIL VER ITEMS ON 17.08.1995 VIDE BILL NO. 257 FROM M/S GHASIRAM AND CO. WEIGHING 5592 GMS FOR RS. 24,716/- AND ON 29.08.1995 VIDE BILL NO. 4706 FROM M/S AGRAWAL JEWELLERS WEIGHING 6398 GMS FOR RS. 40,000/-. THUS, THE TOTAL SILVER ITEMS WEIGHING SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 14 14 11,990 GMS (5592 + 6398 GMS) WAS PURCHASED FOR TOTAL CONSIDERATION OF RS. 64,716/- (RS. 24,716 + R S. 40,000). THE APPELLANT HAD ALSO FURNISHED COPY OF THESE BILLS DURING ASSESSMENT PROCEEDINGS WHICH WERE NOT CONTROVERTED BY THE AO. THE PURCHASE PRICE OF RS. 64,716/- ON SILVER ITEMS WAS DULY REFLECTED IN THE BALANCE SHEET OF SMT. USHA LILA. THE APPELLANT SHRI MOHAN LILA HAD DECLARED THE BALANCE SHEET OF SMT. USHA LILA. THE APPELLANT SHRI MOHAN LILA HAD DECLARED THE BALANCE SILVER ITEMS WEIGHING 4070 GMS VALUING AT RS. 84,897/- AS HIS UNDISCLOSED INCOME I N THE RETURN. THUS, THE TOTAL SILVER ORNAMENTS AND SI LVER ITEMS FOUND DURING THE COURSE OF SEARCH IN THE BED ROOM OF SMT. USHA LILA AND SHRI MOHAN LILA STANDS EXPLAINED AND NO FURTHER ADDITION ON ACCOUNT OF SIL VER JEWELLERY WAS CALLED FOR. THEREFORE, THE ADDITION O F RS. 3,62,100/- ON ACCOUNT OF SILVER ITEMS FOUND IN THE BED ROOM OF THE APPELLANT AND HIS WIFE SMT. USHA LILA IS DELETED. SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 15 15 AS REGARDS THE GOLD JEWELLERY FOUND IN THE BED ROOM OF SMT. USHA LILA & THE APPELLANT AND IN THE LOCKER NO. 264 OF DENA BANK IN THE NAME OF SMT. USHA LILA & THE APPELLANT SHRI MOHAN LILA, THE JEWELLERY AS P ER THE BOARDS INSTRUCTION NO. 1916 DATED 11.05.1994 WHICH CAN BE CONSIDERED TO BE REASONABLE CAN BE WORKED OUT AS UNDER : NAME STATUS REASONABLE JEWELLERY AS PER INSTRUCTION SMT. USHA LILA MARRIED 500 GMS SHRI MOHAN LILA MARRIED 100 GMS MISS. MAHAK LILA UNMARRIED 250 GMS MASTER MADHAV LILA UNMARRIED 100 GMS TOTAL 950 GMS HENCE, AS PER BOARDS INSTRUCTION NO. 1916, THE GOLD JEWELLERY TO THE EXTENT OF 950 GMS MAY BE CONSIDERED AS REASONABLE AND EVEN WAS NOT LIABLE FOR SEIZURE DURING THE COURSE OF SEARCH. THEREFORE, CONSIDERING THE STATUS OF THE FAMILY, CUSTOM AND PRACTICE OF THE BUSINESS COMMUNITY SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 16 16 TO WHICH THE FAMILY OF THE APPELLANT BELONGS, IT IS CONSIDERED THAT GOLD JEWELLERY WEIGHING 950 GMS WAS REASONABLE TO BE IN POSSESSION OF THE FAMILY MEMBERS RECEIVED ON VARIOUS OCCASIONS REPRESENTING STRIDHAN AND PERSONAL JEWELLERY OF THE FAMILY MEMBERS. ON THE DATE OF SEARCH, THE VALUE OF GOLD JEWELLERY ADOPTED FOR VALUATION @ RS. 15,750/- PER 10 GMS. THEREFORE, THE TOTAL VALUE OF THE GOLD JEWELLERY WEIGHING 950 GMS WORKS OUT AT RS.14,96,250/-. HENCE, THE JEWELLERY VALUING AT RS. 14,96,250/- IS CONSIDERED AS REASONABLE AND EXPLAINED AS BELONGING TO THE FAMILY MEMBERS OF THE APPELLANT AND, THEREFORE, NO ADDITION WAS REQUIRED TO BE MADE TO THE EXTENT OF RS. 14,96,250/- OUT OF THE TOTAL GOLD JEWELLERY FOUND FROM BED ROOM AND LOCKER OF THE APPELLANT & HIS WIFE. IN VIEW OF THE ABOVE, THE AMOUNT OF INVESTMENTS IN THE TOTAL GOLD JEWELLERY FOUND DURING THE SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 17 17 COURSE OF SEARCH AND SEIZURE REMAINED TO BE UNEXPLAINED CAN BE WORKED OUT AS UNDER : PARTICULARS AMOUNT (RS.) AMOUNT (RS.) TOTAL GOLD JEWELLERY FOUND 66,89,663 LESS : (I) GOLD JEWELLERY BELONGING TO SMT. SARBATI DEVI 5,70,860/- (II) GOLD JEWELLERY BELONGING TO OTHER FAMILY MEMBERS CONSIDERED REASONABLE AS PER BOARDS INSTRUCTION NO. 1916 14,96,250/- (III) INVESTMENT IN JEWELLERY (DIAMOND SETS) SURRENDERED BY THE APPELLANT FOR A.Y. 2011-12 8,43,560/- 29,10,670 NET ADDITION REQUIRED TO BE MADE 37,78,993 HENCE, ADDITION TO THE EXTENT OF RS. 37,78,993/- IS CONFIRMED. IN THE RESULTS, THE APPELLANT GETS A REL IEF OF RS. 25,27,550/- (RS. 63,06,543- RS. 37,78,993) IN THESE GROUNDS OF APPEAL. 7. THE LD.AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE H AS FILED THE WRITTEN SUBMISSION, WHICH IS ON PAGES 12 TO 15, WHICH READS AS UNDER :- SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 18 18 A SHORT SUMMARY OF THE JEWELLERY FOUND, ADDED BY LD AO, AND CONFIRMED/ DELETED BY LD CIT(A) IS GIVEN AS UNDER IN CHART 1 . CHART 1 - SUMMARY OF ADDITION SR. NO. PLACE GOLD (SOME ITEMS OF DIAMOND) SILVER TOTAL QTY (NET) VALUE QTY (NET) VALUE 1. FOUND AT BED ROOM OF MOTHER (SMT. SARBATI DEVI LILA) 312.240 GMS 5,70,860 1200 GMS 98,340 [WRONG FIGURE. CORRECT FIGURE RS. 38,340. 6,69,200 2. FOUND AT BED ROOM OF ASSESSEE & WIFE SMT. USHA LILA 1519.390 GMS 33,46,773 16070 GMS 4,46,997 37,93,770 3. FOUND AT LOCKER NO. 264, DENA BANK, , BHOPAL [LOCKER OF ASSESSEE AND SMT. USHA LILA] 506.560 GMS 27,72,030 - - 27,72,030 TOTAL 2338.190 GMS 66,89,663 17270 GMS 5,45,337 72,35,000 LESS: SURRENDERED IN RETURN BY ASSESSEE [HENCE, ACCEPTED BY LD AO] 338.100 GMS 8,43,560 4070 GMS 84,897 9,28,457 ADDED BY LD ASSESSING OFFICER 2000.090 58,46,103 13 200 GMS 4,60,440 63,06,543 LESS: DELETED BY LD CIT(A) 1. BELONGING TO MOTHER IN VIEW OF INSTRUCTION NO. 1916 312.240 GMS 5,70,860 1200 GMS 98,340 6,69,200 2. BELONGING TO ASSESSEE-FAMILY IN VIEW OF INSTRUCTION NO. 1916 950 GMS 14,96,250 14,96,250 3. PURCHASED IN THE YEAR 1995 (I.E. PRIOR TO BLOCK PERIOD, PROVED) - - 12000 GMS 3,62,100 (AS PURCHASED IN 1995) 3,62,100 BALANCE CONFIRMED 737.850 GMS 37,78,9 93 NIL NIL 37,78,9 93 EXPLANATION FOR JEWELLERY THE ASSESSEE SUBMITS THAT THE ENTIRE ADDITION OUGHT TO BE DELETED. THE SUBMISSIONS ARE AS UNDER: - SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 19 19 FOUND AT BED ROOM OF MOTHER (SMT. SARBATI DEVI LILA : 8. PARTICULARS GOLD SILVER FOUND FROM HER BED ROOM 312.240 GMS 1200 GMS LESS: DELETED BY LD CIT(A) IN VIEW OF INSTRUCTION NO. 1916 - DEPARTMENT APPEAL 312.240 GMS 1200 GMS BALANCE CONFIRMED NIL NIL A. MOTHER OF ASSESSEE IS AN OLD LADY. SHE WAS AGED 80 YEARS, AT THE TIME OF SEARCH. B. CONSIDERING THE AGE AND STATUS OF SMT. SARBATI DEVI , THIS JEWELLERY IS VERY REASONABLE. THE ASSESSEE FAMILY I S A WELL- KNOWN FAMILY OF BHOPAL. HER HUSBAND LATE SHRI B.R. LILA WAS THE FOUNDER OF LILASONS GROUP OF INDUSTRIES. HER EL DEST SON, SHRI MOHAN LILA WITH WHOM SHE LIVES IS THE MANAGING DIRE CTOR OF LILASONS BREWERIES LTD. THUS, SHE IS CAPABLE OF HOL DING A LARGE QUANTITY OF ORNAMENTS AND JEWELLERY AND SILVER WHIC H SHE RECEIVED AT THE TIME OF HER MARRIAGE AND ON VARIOUS OCCASIONS FROM RELATIVES AND FRIENDS. C. THE CBDT INSTRUCTION NO. 1916 (QUOTED AT PG. 12 OF LD CIT(A)) STATES THAT THE GOLD JEWELLERY 500 GMS MAY BE CONSI DERED REASONABLE, PER FEMALE MARRIED LADY. THE JEWELLERY OF SMT. SARBATI DEVI IS WITHIN THE LIMIT GIVEN IN THE INSTR UCTION. SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 20 20 D. ALSO, THE SILVER OF 1200 GMS IS VERY REASONABLE WHI CH CONSISTS OF COINS ONLY, OF 1200 GMS. E. FINDINGS OF LD CIT(A) AT PG. 15 ARE RELEVANT, WHICH ARE REPRODUCED ABOVE. RELIANCE IS PLACED ON THE FINDINGS OF LD CIT (A). 1. FOUND AT THE BED ROOM OF SMT. USHA LILA AND ASSESSE E AND BANK LOCKER CHART II PARTICULARS GOLD SILVER FOUND FROM HER BED ROOM 1519.390 GMS 16070 GMS FOUND FROM BANK LOCKER 506.560 GMS - TOTAL 2025.950 GMS 16070 GMS LESS: SURRENDERED IN RETURN BY ASSESSEE 338.100 GMS 4070 GMS ADDED LD AO 1687.850 GMS 12000 GMS LESS: DELETED BY LD CIT(A) IN VIEW OF INSTRUCTION NO. 1916 - DEPARTMENT APPEAL 950.000 GMS - LESS: DELETED BY LD CIT(A), AS PURCHASED IN 1995 - DEPARTMENT APPEAL - 12000 GMS BALANCE CONFIRMED - ASSESSEES APPEAL 737.850 GMS NIL SHE IS SEPARATE INCOME-TAX SMT. USHA LILA IS A SEPARATE INCOME-TAX ASSESSEE. S HE HAS FILED RETURNS OF INCOME EARLIER. SHE HAD ALSO MADE DECLAR ATION UNDER VDIS. SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 21 21 WITHOUT PREJUDICE, THE APPELLANT IS MAKING EXPLANAT ION OF THE JEWELLERY AS UNDER: - (I) GOLD JEWELLERY DECLARED IN VDIS : - IN VDIS- 97, SMT. USHA LILA HAS DECLARED CERTAIN JEWELLERY AS PER BELOW CH ART AND PART OF WHICH WAS SOLD IN YEAR 1997-98. CHART III ITEM GRAMS VALUE VDIS 97 GOLD 22865.77 56,48,042 DIAMOND 437.35 9,73,188 TOTAL 23303.12 66,21,230 SOLD IN 97-98 AND CAPITAL GAINS TAX PAID GOLD 20267.8 50,15,249 BALANCE 3035.32 16,05,981 THE GOLD JEWELLERY LEFT WITH THE SMT. USHA LILA AS ABOVE IS 3035.320 GMS , IN COMPARISON TO 1687.850 GMS FOUND DURING THE COURSE OF SEARCH FROM HER POSSESSION (AFTER SUR RENDER OF 338.100 GMS BY ASSESSE). THIS IS VERY WELL WITHIN THE REASONABLE LIMITS. LD CIT(A), PG. 12, DID NOT ACCEPT THIS VDIS DECLARA TION HOLDING AS UNDER: - (A) NO WEALTH-TAX RETURN IS FILED : - WEALTH-TAX PROCEEDINGS ARE SEPARATE PROCEEDINGS. WHETHER THESE JEWELLERY I TEMS ARE ASSESSABLE UNDER WEALTH-TAX OR NOT IS TO BE ASS ESSED UNDER THE PROVISIONS OF THE WEALTH-TAX. ANY DEFAULT UNDER SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 22 22 WEALTH-TAX, WILL NOT AFFECT THE BENEFIT OF TAX ALRE ADY PAID IN VDIS UNDER THE INCOME-TAX. (B) APPELLANT HAD HIMSELF DECLARED SOME INVESTMENTS IN THE JEWELLERY AS UNEXPLAINED FROM UNDISCLOSED SOURCES : - IT IS SUBMITTED THAT THE INVESTMENT WHICH WAS FOUND IN EXCESS OF THE AMOUNT ALREADY DISCLOSED UND ER VDIS AS PER THE INITIAL ESTIMATE OF ASSESSEE WAS DI SCLOSED IN INCOME-TAX. ALSO, SOME JEWELLERY WAS OFFERED TO BUY PEACE. IF ANY ADVERSITY ARISES DUE TO THIS, THE SAM E SHOULD BE REFUNDED BACK TO THE ASSESSEE. IT IS SUBMITTED T HAT NO ADVERSE INFERENCE CAN BE DRAWN FURTHER, AS ASSESSEE HIMSELF HAS PAID TAX ON SAME. THUS, THE JEWELLERY DECLARED IN VDIS IS SUFFICIENT TO COVER THE ADDITION MADE IN THE PRESENT CASE. (II) SILVER JEWELLERY WAS AN OLD JEWELLERY REFLECTED IN BALANCE SHEET OF SMT. USHA LILA DELETED BY LD CIT (A) (A) PURCHASE BILLS OF JEWELLERY BILL NO DATE PB REF. NAME OF FIRM WEIGH T (GMS) AMOUNT 257 17.08.1995 PB 37 GHASIRAM & CO 5592 24,716 4706 29.08.1995 PB 38 AGRAWAL JEWELLERS 6398 40,000 SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 23 23 TOTAL 12000 64,716 (B) PURCHASE PRICE OF RS. 64,716 IS REFLECTED IN BALANCE SHEET FILED WITH RETURN FOR: F.Y. 1997-98 PB 23 F.Y. 1998-99 PB 29 F.Y. 2010-11 PB 35 (III) IT IS ALSO SUBMITTED THAT BOTH MOHAN LILA AND SMT. USHA LILA HAD BEEN FILING INCOME-TAX RETURNS PRIOR TO SEARCH AND FOR MANY YEARS. IT IS WORTH NOTING THAT THE GOLD AND SI LVER JEWELLERIES WERE DECLARED IN INCOME-TAX RETURNS AS UNDER: CHART IV A.Y. MOHAN LILA USHA LILA PB AMOUNT PB AMOUNT 1998-99 - - PB 23 19,75,938 1999-00 PB 46 53,395 PB 29 19,35,938 2010-11 PB 51 53,395 PB 35 19,35,938 CONSIDERING THE RATES OF JEWELLERY IN THOSE YEARS, THE DECLARATIONS IN VDIS, AND THE FACT THAT THESE WERE ALREADY OFFERED IN INCOME-TAX RETURNS EARLIER, DRAWING ANY INFERENCE THAT THESE A RE UNDISCLOSED SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 24 24 INVESTMENTS OF CURRENT YEAR, WOULD BE A TOTALLY IMP OSSIBLE ASSUMPTION. 9. THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT AS REGARDS THE GOLD JEWELLERY FOUND IN THE BED ROOM OF SMT. USHA LILA AND THE ASSESSEE AND IN LOCKER NO.264 OF DENA BANK IN THE NAME OF SMT. USHA LILA AND JEWELLERY FOUND IN THE NAME OF ASSESSEE SHRI MOHAN LILA, THE JEWELLERY AS PER B OARDS INSTRUCTION NO. 1916, THE GOLD JEWELLERY TO THE EXTE NT OF 950 GMS. WAS GEN BENEFIT. MOREOVER, DURING THE COURSE OF SEARCH, THE TOTAL GOLD JEWELLERY WAS FOUND AT RS. 66,89,663/ - AND THE ASSESSEE COULD EXPLAIN THE JEWELLERY UPTO RS. . 29, 10,670/-. THEREFORE, BALANCE OF RS. 37,78,993/- JEWELLERY WAS ADDED BY THE LD. CIT(A) . THEREFORE, THE BENEFIT WAS GIVEN TO THE ASSESSEE AS PER THE DECISION OF HON'BLE GUJARAT HIGH COURT IN THE CASE OF KAILASHBEN MANHARLAL CHOKSHI VS. CIT (2010) 328 IT R 411 (GUJ.), MORE BENEFIT CANNOT BE GRANTED. 10. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 25 25 FIND THAT DURING THE COURSE OF SEARCH, THE GOLD JEW ELLERY WEIGHING GROSS AT 319.040 GMS., NET WEIGHT 312.240 G MS. VALUED AT RS. 5,70,860/- WAS FOUND FROM THE BEDROOM FROM SMT. SARBATI DEVI. AND SILVER. THE ASSESSEE HAS SUB MITTED THAT SHRI MOHAN KUMAR LILA AND USHA LILA ARE ALSO ASSESS EES AND THEY HAVE ALSO DECLARED THE GOLD JEWELLERY IN VDIS. SMT. USHA LILA IS INCOME TAX ASSESSEE AND IN VDIS SHE HAS DEC LARED CERTAIN JEWELLERY AND SHE HAS SOLD GOLD WEIGHING 20 ,267.800 GMS. STILL REMAINS 3035.320 GMS. THE TOTAL GOLD FOU ND IS 1519.390 GMS. + 506.560 GMS. (FROM LOCKER) = 2025.9 50 GMS. STILL AFTER DEDUCTING THIS 2025.950 GMS., OUT OF 30 35.320 GMS, THERE IS SURPLUS AND, THEREFORE, NO ADDITION IS CAL LED FOR. 11. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. 12. THE DEPARTMENT HAS ALSO COME IN APPEAL AND TAKEN THE FOLLOWING GROUND OF APPEAL :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED, THE CIT(A) HAS ERRED IN GRANT ING A RELIEF OF RS. 25,27,550/- OUT OF TOTAL ADDITION O F RS. 63,06,543/- MADE BY THE AO ON ACCOUNT OF SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 26 26 UNEXPLAINED INVESTMENT IN GOLD, DIAMOND AND SILVER JEWELLERY. 13. WE FIND THAT THIS APPEAL HAS LOW TAX EFFECT AND THE SAME IS DISMISSED FOR WANT OF TAX EFFECT AS UNDER. 14. WE HAVE HEARD BOTH THE PARTIES. WE FIND THAT RECENT LY THE CBDT VIDE CIRCULAR NO. 21/20145 ISSUED ON 10.12 .2015 HAS REVISED THE MONETARY LIMIT FOR FILING OF APPEAL BEFORE ITAT FIXING THE TAX EFFECT LIMIT AT RS.10 LACS. THE SAI D CIRCULAR IS REPRODUCED HEREUNDER FOR READY REFERENCE :- CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007-ITJ (PT) CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10 TH DECEMBER, 2015 SUBJECT : REVISION OF MONETARY LIMITS FOR FIL ING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRI BUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT MEAS URES FOR REDUCING LITIGATION REG. REFERENCE IS INVITED TO BOARDS INSTRUCTION NO 5/2014 DATED 10.07.2014 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING DEPARTMENTAL APPEALS (IN INCO ME-TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2. IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HAS BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW THE MONETA RY LIMITS AND CONDITIONS SPECIFIED BELOW. SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 27 27 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS 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. 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERE NCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX TH AT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN RED UCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAIN ST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRE D TO AS DISPUTED ISSUES). HOWEVER THE TAX WILL NOT INCLUD E ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INT EREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTERES T IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX O N DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS, THE TAX EFFEC T WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EF FECT SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL, CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPEC IFIED IN PARA 3. NO APPEAL SHALL BE FILED IN RESPECT OF AN A SSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN PARA 3. IN OTHER WORDS, HENCEFOR TH, APPEALS CAN BE FILED ONLY WITH REFERENCE TO THE TAX EFFECT IN THE RELEVANT ASSESSMENT YEAR. HOWEVER, IN CASE OF A COM POSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY, WHI CH INVOLVES SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 28 28 MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEAL SHALL BE FILED IN RESPECT OF ALL SUCH ASSESSMENT YEARS EVEN IF THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S ), IF IT IS DECIDED TO FILE APPEAL IN RESPECT OF THE YEAR(S) IN WHICH TAX EFFECT EXCEEDS THE MONETARY LIMIT PRESCRIBED. IN C ASE WHERE A COMPOSITE ORDER/ JUDGEMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARAT ELY. 6. IN A CASE WHERE APPEAL BEFORE A TRIBUNAL OR A CO URT IS NOT FILED ONLY ON ACCOUNT OF THE TAX EFFECT BEING LESS THAN THE MONETARY LIMIT SPECIFIED ABOVE, THE COMMISSIONER OF INCOME- TAX SHALL SPECIFICALLY RECORD THAT EVEN THOUGH THE DECISION IS NOT ACCEPTABLE, APPEAL IS NOT BEING FILED ONLY ON T HE CONSIDERATION THAT THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIED IN THIS INSTRUCTION. FURTHER, IN S UCH CASES, THERE WILL BE NO PRESUMPTION THAT THE INCOME-TAX DE PARTMENT HAS ACQUIESCED IN THE DECISION ON THE DISPUTED ISSU ES. THE INCOME-TAX DEPARTMENT SHALL NOT BE PRECLUDED FROM F ILING AN APPEAL AGAINST THE DISPUTED ISSUES IN THE CASE OF T HE SAME ASSESSEE FOR ANY OTHER ASSESSMENT YEAR, OR IN THE C ASE OF ANY OTHER ASSESSEE FOR THE SAME OR ANY OTHER ASSESSMENT YEAR, IF THE TAX EFFECT EXCEEDS THE SPECIFIED MONETARY LIMIT S. 7. IN THE PAST, A NUMBER OF INSTANCES HAVE COME TO THE NOTICE OF THE BOARD, WHEREBY AN ASSESSEE HAS CLAIMED RELIE F FROM THE TRIBUNAL OR THE COURT ONLY ON THE GROUND THAT THE DEPARTMENT HAS IMPLICITLY ACCEPTED THE DECISION OF THE TRIBUNAL OR COURT IN THE CASE OF THE ASSESSEE FOR A NY OTHER ASSESSMENT YEAR OR IN THE CASE OF ANY OTHER ASSESSE E FOR THE SAME OR ANY OTHER ASSESSMENT YEAR, BY NOT FILING AN APPEAL ON THE SAME DISPUTED ISSUES. THE DEPARTMENTAL REPRESENTATIVES/COUNSELS MUST MAKE EVERY EFFORT TO BRING TO THE NOTICE OF THE TRIBUNAL OR THE COURT THAT THE AP PEAL IN SUCH CASES WAS NOT FILED OR NOT ADMITTED ONLY FOR T HE REASON OF THE TAX EFFECT BEING LESS THAN THE SPECIFIED MON ETARY LIMIT AND, THEREFORE, NO INFERENCE SHOULD BE DRAWN THAT T HE DECISIONS RENDERED THEREIN WERE ACCEPTABLE TO THE DEPARTMENT. ACCORDINGLY, THEY SHOULD IMPRESS UPON T HE TRIBUNAL OR THE COURT THAT SUCH CASES DO NOT HAVE A NY PRECEDENT VALUE. AS THE EVIDENCE OF NOT FILING APPE AL DUE TO THIS INSTRUCTION MAY HAVE TO BE PRODUCED IN COURTS, THE JUDICIAL FOLDERS IN THE OFFICE OF CSIT MUST BE MAIN TAINED IN A SYSTEMIC MANNER FOR EASY RETRIEVAL. 8. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISSU ES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONETARY LIMITS SPECIFIED IN PARA 3 SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 29 29 ABOVE OR THERE IS NO TAX EFFECT: (A) WHERE THE CONSTITUTIONAL VALIDITY OF THE PROV ISIONS OF AN ACT OR RULE ARE UNDER CHALLENGE, OR (B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTIO N OR CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES, OR (C) WHERE REVENUE AUDIT OBJECTION IN THE CASE HAS BEEN ACCEPTED BY THE DEPARTMENT, OR (D) WHERE THE ADDITION RELATES TO UNDISCLOSED FOR EIGN ASSETS/ BANK ACCOUNTS. 9. THE MONETARY LIMITS SPECIFIED IN PARA 3 ABOVE SH ALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX. FILING OF APPEALS IN OTHER DIRECT TAX M ATTERS SHALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF S TATUTE & RULES. FURTHER, FILING OF APPEAL IN CASES OF INCOME TAX, WHERE THE TAX EFFECT IS NOT QUANTIFIABLE OR NOT INVOLVED, SUCH AS THE CASE OF REGISTRATION OF TRUSTS OR INSTITUTIONS UNDE R SECTION 12A OF THE IT ACT, 1961, SHALL NOT BE GOVERNED BY T HE LIMITS SPECIFIED IN PARA 3 ABOVE AND DECISION TO FILE APP EAL IN SUCH CASES MAY BE TAKEN ON MERITS OF A PARTICULAR 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. 11. THIS ISSUES UNDER SECTION 268A (1) OF THE INCOM E-TAX ACT 1961. 3. IN VIEW OF THE ABOVE CIRCULAR, SINCE THE TAX EFFE CT INVOLVED IN THIS APPEAL IS BELOW THE PRESCRIBED MONETARY LIMI T FOR FILING OF APPEALS BEFORE THE ITAT, THEREFORE, THE PRESENT APPEAL DESERVES TO BE DISMISSED IN LIMINE BEING NOT MAINTAINABLE IN VIEW OF ABOVE CIRCULAR NO. 21/20145 DATED 10.12.2015 . SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 30 30 4. WE FURTHER FIND THAT HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS M/S. P. S. JAIN & CO. IN ITA NO.179/1991 DATED 02.08.2010 HAS HELD AS UNDER: THIS COURT CAN VERY WELL TAKE JUDICIAL NOTICE OF T HE FACT THAT BY PASSAGE OF TIME MONEY VALUE HAS GONE DOWN, THE COST OF LITIGATION EXPENSES HAS GONE UP, THE ASSESSEES ON THE FILE OF THE DEPARTMENTS HAVE BEEN INCREASED CONSEQUENTLY, THE BURDEN ON THE DEPARTMEN T HAS ALSO INCREASED TO A TREMENDOUS EXTENT. THE CORRIDORS OF THE SUPERIOR COURTS ARE CHOCKED WITH H UGE PENDENCY OF CASES. IN THIS VIEW OF THE MATTER, THE BOARD HAS RIGHTLY TAKEN A DECISION NOT TO FILE REFE RENCES IF THE TAX EFFECT LESS THAN RS. 2 LAKHS. THE SAME POLICY FOR OLD MATTERS NEEDS TO BE ADOPTED BY THE DEPARTME NT. IN OUR VIEW, THE BOARDS CIRCULAR DATED MARCH 27, 2 000 IS VERY MUCH APPLICABLE EVEN TO THE OLD REFERENCES WHICH ARE STILL UNDECIDED. THE DEPARTMENT IS NOT JUSTIFI ED IN PROCEEDING WITH THE OLD REFERENCES WHEREIN THE TAX IMPACT IS MINIMAL. THUS, THERE IS NO JUSTIFICATION TO PROCEEDS WITH DECADES OLD REFERENCES HAVING NEGLIGI BLE TAX EFFECT. SIMILARLY, HONBLE GUJARAT HIGH COURT IN THE CASE O F CIT V. SURESHCHANDRA DURGAPRASAD KHATOD (HUF) (2012) 253 CTR 492 (GUJ) HAS SPECIFICALLY CONSIDERE D INSTRUCTION NO. 3/2011 AND HELD THAT THE SAME WOULD APPLY TO PENDING CASES AS WELL EVEN THOUGH THERE WA S SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 31 31 A SPECIFIC CONDITION IN THAT INSTRUCTION ALSO THAT THE SAME WOULD APPLY TO APPEALS FILED ON OR AFTER FEBRUARY, 2011. HONBLE HIGH COURT HAS CONSIDERED THIS ISSUE AS UNDER:- 6. THE QUESTION ABOUT APPLICABILITY OF INSTRUCTION NO.3 OF 2011 HAD BEEN CONSIDERED AND DECIDED BY THE AURANGABAD BENCH OF THE BOMBAY HIGH COURT IN TAX APPEAL NO. 78 OF 2007, THE COMMISSIONER OF INCOME TAX V. SMT. VIJAYA V. KAVEKAR DECIDED ON 29.7.2011. THE DIVISION BENCH, AFTER CONSIDERING EARLIER INSTRUCTIONS AND VARIOUS DECISIONS OF THE COURTS ON INSTRUCTIONS, RELYING ON THE DECISION IN COMMISSION ER OF INCOME TAX VS. MADHUKAR K. INAMDAR (HUF) REPORTED I N (2010) 229 CTR (BOM) 77, HAS HELD IN PARAGRAPHS 9, 10, 11, 14 AND 17 AS UNDER: '9. AS STATED EARLIER, THE INCOME TAX ACT WAS AMEND ED AND SECTION 268A HAS BEEN INTRODUCED ON THE STATUTE BOOK WITH RETROSPECTIVE EFFECT. SECTION 268A CARVES OUT AN EXCEPTION FOR FILING OF APPEALS AND REFERENCES U NDER SECTION 260 A OF THE ACT. THE LEGISLATURE HAS PRESC RIBED THAT THE CBDT IS EMPOWERED TO ISSUE CIRCULARS AND INSTRUCTIONS FROM TIME TO TIME, WITH REGARD TO FILI NG OF APPEALS DEPENDING ON THE TAX EFFECT INVOLVED. THEREAFTER, IN 2008, CBDT INSTRUCTION NO. 5 OF 2008 DATED 15TH MAY, 2008 WAS ISSUED. THIS COURT IN THE CASE OF 'COMMISSIONER OF INCOME TAX V/S MADHUKAR K. INAMDAR (HUF) REPORTED IN '(2010) 229 CTR (BOM) 77, INTERPRETED THE AFORESAID CIRCULAR. THE CIRCULAR WA S ISSUED IN SUPERSESSION OF ALL EARLIER INSTRUCTIONS ISSUED SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 32 32 BY THE BOARD. THE MONETARY LIMIT WAS INCREASED AND APPEALS WERE TO BE FILED UNDER SECTION 260A, THEREA FTER, ONLY IN CASES WHERE THE TAX EFFECT EXCEEDED RS. 4 L ACS. PARAGRAPH 11 OF THAT INSTRUCTION STIPULATED THAT IT WAS APPLICABLE TO APPEALS FILED ON OR AFTER 15TH MAY, 2 008. IT WAS FURTHER PROVIDED THAT IN CASES, WHERE APPEAL S WERE FILED BEFORE 15TH MAY, 2008, THEY WOULD BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT WHICH WERE OPERATIVE AT THE TIME WHEN SUCH APPEALS WERE FILED. THE INSTRUCTION WAS ISSUED UNDER SECTION 268A(1) OF THE ACT. THE ARGUMENT OF THE LEARNED COUNSEL FOR THE REVENUE IN THAT CASE WAS, THAT THE INSTRUCTION ISSUED ON 15TH MAY, 2008 DID NOT PRECLUDE THE DEPARTMENT FROM CONTINUIN G WITH THE APPEALS AND/OR PETITIONS FILED PRIOR TO 15 TH MAY, 2008, IF THEY INVOLVED A SUBSTANTIAL QUESTION OF LAW OF A RECURRING NATURE, NOTWITHSTANDING THE FACT THAT THE TOTAL CUMULATIVE TAX EFFECT INVOLVED IN THE APP EALS WAS LESS THAN RS. 4 LACS. IT WAS SUBMITTED, SUCH APPEALS WHICH WERE FILED PRIOR TO THE ISSUANCE OF INSTRUCTION AND WHERE SUBSTANTIAL QUESTIONS OF LAW WERE RAISED, WERE REQUIRED TO BE DECIDED ON MERITS. THE COURT, WHILE CONSIDERING THE ISSUE OBSERVED THAT PARAGRAPH 5 OF THE CIRCULAR MADE IT CLEAR THAT NO APPEALS WOULD BE FILED IN THE CASES INVOLVING TAX E FFECT LESS THAN RS. 4 LACS NOTWITHSTANDING THE ISSUE BEIN G OF RECURRING NATURE. RELYING ON THE JUDGEMENT IN CIT V /S POLYCOTT CORPORATION, THE COURT OBSERVED AS FOLLOWS : '6 THE AFORESAID JUDICIAL VERDICT MAKES IT CLEAR THAT THE CIRCULAR DT. 15TH MAY, 2008 IN GENERAL AND PARA (5) THEREOF IN PARTICULAR LAY DOWN THAT EVEN IF THE SAM E ISSUE, IN RESPECT OF SAME ASSESSEE, FOR OTHER ASSES SMENT YEARS IS INVOLVED, EVEN THEN THE DEPARTMENT SHOULD NOT FILE APPEAL, IF THE TAX EFFECT IS LESS THAN RS. 4 L AKHS. IN SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 33 33 OTHER WORDS, EVEN IF THE QUESTION OF LAW IS OF RECU RRING NATURE EVEN THEN, THE REVENUE IS NOT EXPECTED TO FI LE APPEALS IN SUCH CASES, IF THE TAX IMPACT IS LESS TH AN THE MONETARY LIMIT FIXED BY THE CBDT.' 7. ONE FAILS TO UNDERSTAND HOW THE REVENUE, ON THE FACE OF THE ABOVE CLEAR INSTRUCTIONS OF THE CBDT, CAN CO NTEND THAT THE CIRCULAR DT. 15TH MAY, 2008 ISSUED BY THE CBDT IS APPLICABLE TO THE CASES FILED AFTER 15TH MAY, 20 08 AND IN COMPLIANCE THEREOF, THEY DO NOT FILE APPEALS, IF THE TAX EFFECT IS LESS THAN RS. 4 LAKHS; BUT THE SAID CIRCU LAR IS NOT APPLICABLE TO THE CASES FILED PRIOR TO 15TH MAY , 2008 I.E. TO THE OLD PENDING APPEALS, EVEN IF THE TAX EF FECT IS LESS THAN RS. 4 LAKHS. IN OUR VIEW, THERE IS NO LOG IC BEHIND THIS BELIEF ENTERTAINED BY THE REVENUE.' THE COURT HAS FURTHER HELD THAT THE PREVAILING INSTRUCTIONS FIXING THE MONETARY LIMIT FOR THE TAX EFFECT WOULD HOLD GOOD EVEN FOR PENDING CASES. ACCORDINGLY , THE COURT DISMISSED ALL THE APPEALS HAVING A TAX EF FECT OF LESS THAN RS. 4 LACS. 10. THE NEW CBDT INSTRUCTIONS HAVE BEEN ISSUED ON 9 TH FEBRUARY, 2011, BEING INSTRUCTION NO. 3 OF 2011. TH E MONETARY LIMIT HAS BEEN RAISED AGAIN AND CLAUSE 3 O F THE INSTRUCTIONS PROVIDES THAT APPEALS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMITS PRESCRIBED, HENCEFORTH. THE MONETAR Y LIMITS PRESCRIBED FOR FILING AN APPEAL UNDER SECTIO N 260A BEFORE THE HIGH COURT HAS BEEN RAISED TO RS. 10 LAC S. THIS INSTRUCTION IS IDENTICAL TO THE CBDT INSTRUCTI ON NO. 5 OF 2008. CLAUSE 10 OF THIS CIRCULAR INDICATES THAT MONETARY LIMITS WOULD NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX. IT FURTHE R SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 34 34 PROVIDES THAT WHERE THE TAX EFFECT IS NOT QUANTIFIA BLE, THE DEPARTMENT SHOULD TAKE A DECISION TO FILE APPEALS O N MERITS OF EACH CASE. CLAUSE 11, AGAIN PROVIDES THAT THE INSTRUCTION WOULD APPLY TO APPEALS FILED ON OR AFTE R ....2011 AND APPEALS FILED BEFORE ...... 2011 WOULD BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERA TIVE AT THE TIME WHEN SUCH APPEALS WERE FILED. 11. IN OUR OPINION, WHEN A SIMILAR CLAUSE HAS BEEN INTERPRETED BY THE DIVISION BENCH OF THIS COURT IN CIT VS. MADHUKARINAMDAR (SUPRA), THE SAME PRINCIPLES MUST APPLY IN THE PRESENT CASES ALSO, AS WE HAVE FOUND T HAT THE INSTRUCTIONS OF 15TH MAY, 2008 IS PARA- MATERIA L WITH THE INSTRUCTION OF 9TH FEBRUARY, 2011. 14. SIMILARLY, THE DELHI HIGH COURT IN THE CASE OF 'COMMISSIONER OF INCOME TAX V/S DELHI RACE CLUB LTD .', DECIDED ON MARCH 03, 2011, BY RELYING ON ITS EARLIE R JUDGEMENT 'COMMISSIONER INCOME TAX DELHI-III V/S M/ S P.S. JAIN AND CO. DECIDED ON 2ND AUGUST, 2010 HAS HELD THAT THE CBDT CIRCULAR RAISING THE MONETARY LI MIT OF THE TAX EFFECT TO RS. 10 LACS WOULD BE APPLICABLE T O PENDING CASES ALSO. 17. IT IS TRUE THAT THIS JUDGEMENT IN CHHAJER'S CAS E (SUPRA) WAS NOT BROUGHT TO THE NOTICE OF THE DIVISI ON BENCH, WHILE DECIDING EITHER MADHUKAR'S CASE (SUPRA ) OR THE CASE OF POLYCOT CORPORATION (SUPRA). HOWEVER, T HE INSTRUCTION OF 2005 WHICH WAS CONSIDERED IN CHHAJER 'S CASE HAS ALSO BEEN INTERPRETED IN POLYCOT CORPORATI ON (SUPRA). THE CONSISTENT VIEW OF THE COURT HAS BEEN THAT THE CBDT INSTRUCTION WOULD APPLY TO PENDING CASES A S SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 35 35 WELL. THE MAIN OBJECTIVE OF SUCH INSTRUCTIONS IS TO REDUCE THE PENDING LITIGATION WHERE THE TAX EFFECT IS CONSIDERABLY SMALL. THEREFORE, IN OUR OPINION, THE TAX APPEALS ARE REQUIRED TO BE DISMISSED, AS THEY ARE N OT MAINTAINABLE IN VIEW OF THE PROVISIONS OF SECTION 2 68A OF THE INCOME TAX, AND THE CBDT INSTRUCTION NO. 3 OF 2011.' 7. THE SAME VIEW HAS BEEN TAKEN BY THE KARNATAKA HIGH COURT IN ITA NO.3191 OF 2005 IN THE COMMISSION ER OF INCOME- TAX VS. M/S. RANKA & RANKA DECIDED ON 2.11.2011, WHEREIN THE DIVISION BENCH HAS CONSIDERE D INSTRUCTION NO.3 AND THE NATIONAL LITIGATION, POLIC Y, HAD HELD AS UNDER: '(I) INSTRUCTION NO.3/11 IS ALSO APPLICABLE TO THE PENDING APPEALS. (II) AS THE TAX EFFECT IN THE INSTANT CASE IS LESS THAN RS.10 LAKHS, THE APPEAL STANDS DISMISSED ON THE GROUND OF MONETARY LIMIT, WITHOUT EXPRESSING ANY OPINION ON T HE MERITS OF THE CLAIM, MAKING IT CLEAR THAT THE DEPAR TMENT IS AT LIBERTY TO PROCEED AGAINST THE ASSESSEE IN FU TURE, IF THERE ANY AMOUNT DUE FROM THE ASSESSEE, ON SIMILAR ISSUE AND IF IT IS ABOVE THE MONETARY LIMIT PRESCRI BED.' SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 36 36 5. WE ALSO FIND FROM THE ABOVE CASE LAW OF HONBLE GUJARAT HIGH COURT IN THE CASE OF SURESH CHANDRA DURGAPRASAD KHATOD (HUF) ( SUPRA ) THAT IN THE SIMILAR SITUATION, EXACTLY IDENTICAL INSTRUCTIONS WERE APPL IED TO THE APPEALS FILED RETROSPECTIVELY. HONBLE GUJARAT HIGH COURT HAS DISCUSSED THAT ALMOST ALL HIGH COURTS ARE OF THE UN ANIMOUS VIEW, CONSIDERING THE MAIN OBJECTIVE OF SUCH INSTRUC TIONS THAT TO REDUCE THE PENDING LITIGATION, WHERE THE TAX EFFE CT IS CONSIDERABLE LOW OR SMALL, THE APPEAL IS NOT MAINTAI NABLE. THE RECENT INSTRUCTION REVISING THE MONETARY LIMIT TO R S. 10 LAKHS FOR FILING APPEAL BEFORE ITAT ON INCOME TAX MATTERS , AS ISSUED VIDE THE ABOVE CIRCULAR WILL APPLY TO PENDING APPEAL S ALSO FOR THE REASON THAT THE SAME IS EXACTLY IDENTICAL TO EA RLIER INSTRUCTIONS. 6. IN VIEW OF THE ABOVE DISCUSSION AND THE LATEST CI RCULAR ISSUED BY THE CBDT, AS REPRODUCED ABOVE, SINCE THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS BELOW THE MONETARY LIMIT, THEREFORE, WE DISMISS THIS DEPARTMENTAL APPEAL IN LIMINE BEING NOT MAINTAINABLE. SHRI MOHAN KUMAR LILA VS. ACIT,1(2), BHOPAL I.T.A.N OS. 674 & 678/IND/2014 A.Y. 2011-12 37 37 7. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED, BEING NOT MAINTAINABLE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED AND DEPARTMENTAL APPEAL IS DISMISSED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 6 TH APRIL, 2016. SD/- (B.C.MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 6 TH APRIL, 2016. CPU*