2018 (8) TMI 1203 - AT - Income Tax

Monetary limit for filing an appeal - the tax effect in the Departmental Appeal is less than 20 lakhs. - Held that - Pending appeals below the specified tax effect may be withdrawn/not pressed. Learned CIT (DR) in view of the above Board Circular did not press the Departmental Appeal. We may also note that the Appeal of the Department above would not fall within the exceptions provided in the Board Circular. In the result the Departmental Appeal is not maintainable as have been filed against the instruction of the Board. The Departmental Appeal is dismissed as withdrawn/not pressed by the Learned CIT (DR).

Summary

Issues Involved:
Challenge of deletion of addition of cash deposit in the Departmental Appeal due to tax effect below specified limit.

Analysis:
The appeal by the Revenue was against the order of Ld. CIT(A)- Rohtak, challenging the deletion of addition of ?54,68,000 on account of cash deposit. The tax effect in the Departmental Appeal was less than ?20 lakhs, falling below the monetary limit specified in Circular No. 3 of 2018 issued by CBDT. The Circular directed that the Department shall not file appeal before the Tribunal in such cases. The instruction applied retrospectively to pending appeals and future filings. The Learned CIT (DR) did not press the Departmental Appeal in compliance with the Board Circular. The Appeal of the Department did not fall within the exceptions provided in the Circular. Consequently, the Departmental Appeal was deemed not maintainable as it was filed against the Board's instruction, leading to its dismissal as withdrawn/not pressed by the Learned CIT (DR). As a result, the appeal of the Revenue was dismissed by the Tribunal.

This judgment highlights the significance of adhering to the monetary limits set by the CBDT in filing Departmental Appeals. The Circular provided clear guidance that appeals below the specified tax effect should not be pursued before the Tribunal. Failure to comply with such directives may render the appeal not maintainable, as demonstrated in this case. The decision emphasizes the importance of following procedural requirements and instructions issued by the relevant authorities in tax matters to ensure the proper administration of justice and efficient resolution of disputes.