2016 (4) TMI 1397 - AT - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - The departmental appeal has been filed wherein the tax effect involved is much less than 10 lakh.We dismiss the departmental appeal considering the material available on record.

Summary

Issues:
1. Correctness of the order dated 30.09.2014 of CIT(A)-IV, New Delhi pertaining to 2010-11 assessment year.
2. Deletion of addition of ?29,00,000/- u/s 68 being investment made by M/s S.G.Portfolio Ltd.
3. Acceptance of investments made by M/s S.G.Portfolio Ltd. when reassessment proceedings are pending.
4. Maintainability of departmental appeal in view of Circular No.21/2015 dated 10th December, 2015 of CBDT.
5. Revision of monetary limit to ?10 lakh for filing appeals before the Income Tax Appellate Tribunal.

Analysis:
1. The appeal was filed by the Revenue challenging the order of CIT(A)-IV, New Delhi for the 2010-11 assessment year. The grounds of appeal included the deletion of an addition of ?29,00,000/- u/s 68 related to investments made by M/s S.G.Portfolio Ltd. The Revenue contended that the CIT(A) erred in not considering all facts of the case and in accepting the investments due to the annulment of assessment in the case of M/s S.G.Portfolio Ltd. for A.Y. 2010-11.

2. During the hearing, no one appeared on behalf of the assessee. The Senior DR was asked to address the maintainability of the departmental appeal in light of Circular No.21/2015 dated 10th December, 2015 of the CBDT, which revised the monetary limit for filing appeals before the ITAT to ?10 lakh. The Senior DR acknowledged that the appeal fell below the revised limit.

3. The ITAT considered the CBDT Circular dated 10.12.2015, which set the monetary limit at ?10 lakh for departmental appeals before the ITAT. The Circular applied retrospectively, and it was noted that the Board's instructions to Income Tax Authorities under section 268A of the Income Tax Act, 1961, are binding. Consequently, the ITAT dismissed the departmental appeal based on the revised monetary limit and legal precedent.

4. The ITAT, based on the above considerations and the facts presented, concluded that the departmental appeal by the Revenue was to be dismissed. The decision was made in light of the material available on record, and the appeal of the Revenue was ultimately dismissed.

5. In conclusion, the ITAT pronounced the order on 01st April, 2016, dismissing the appeal of the Revenue. The judgment highlighted the impact of the CBDT Circular setting the monetary limit for departmental appeals and emphasized the binding nature of the Board's instructions on Income Tax Authorities.