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TMI Blog2007 (8) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 was partly disallowed to the extent of Rs. 21,500. Similarly, addition was made on account of amount deposited in the bank account amounting to Rs. 3,50,656. After considering the contentions of the assessee and recording detailed finding, the ld. CIT(A) deleted both the additions. It was also argued by ld. AR that tax effect in the appeal filed by revenue is below Rs. 2 lakhs therefore, as per CBDT Circular No. 2, dated 24-10-2005, the department should not have filed the appeal. In the cross objection the assessee has challenged the validity of reopening under section 147. 3. With regard to claim on HRA, the ld. CIT(A) found that assessee has paid rent of Rs. 5,400 per month for 10 months which amounted to Rs. 54,000. A rent recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account in ICICI Bank and started depositing her salary in the joint account. She was also an income-tax assessee and filing her return for the relevant assessment year under consideration. Whatever unexplained cheques indicated by the Assessing Officer, were duly verified as per Annexure-A, by the ld. CIT(A), according to which all credit entries were duly explained. Detailed finding has been recorded by the ld. CIT(A) in his appellate order, which is as per material on record, no interference is called in the findings recorded in the ld. CIT(A) resulting in deletion of addition of unexplained credit of Rs. 3,50,656. 5. With regard to AR s contention regarding dismissal of revenue s appeal on the ground of tax effect, it was cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial notice of the 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 increased; consequently, the burden on the department also increased to a tremendous extent. The corridors of the superior courts are choked with huge pendency of cases. In this view of the matter, the Board has rightly taken a decision not to file references if the tax effect is less than Rs. 2 lakhs. The same policy for old matters needs to be adopted by the department. In our view, the Board s circular dated 27-3-2000, is very much applicable even to the old references which are still undecided. The Department is not justified in proceeding with the old references wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circular dated 24-10-2005." 7. As per my considered view the instructions for not filing the appeals with regard to the quantum of revenue effect being less than particular amount have not been issued by the Central Board of Direct Taxes in a light hearted manner. These are issued after a great deal of deliberations and discussion where every aspect of the matter, more particularly the question of loss of revenue is examined in depth. Every officer is enjoined with the duty to advance the policies laid down by the Central Board of Direct Taxes and see that these are not defeated. The instructions are also aimed at reducing arrears of appeals in Courts and Tribunals. The Central Board of Direct Taxes, in the circular dated March 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evised the monetary limits. It was held that in case of matters not covered by the exceptions like : ( i ) where revenue audit objection in the case has been accepted by the Department, ( ii ) where the Board s order, notification, instruction or circular is the subject matter of an adverse order, ( iii ) where prosecution proceedings are contemplated against the assessee, and ( iv ) where the constitutional validity of the provisions of the Act are under challenge, the appeals filed by the department should be dismissed. It was observed by ITAT Special Bench in the case of ITO v. Bir Engg. Works [2005] 94 ITD 164 (Asr.) that with a view to reduce the pendency of appeals in the Tribunal, High Court and Supreme Court and also to redress ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or class of cases. These instructions could be in the form of guidelines, principles or procedure to be followed by the income-tax authorities in the work relating to assessment, collection of revenue or the initiation of proceedings for the imposition of penalties. Here also the Board may, if it is of the opinion that it is necessary in the public interest to do so, publish and circulate such instructions. Therefore, it is not in all cases that instructions/circulars issued by the Board under section 119(2) are published by the Board. Thus, the only difference between sub-section (1) and sub-section (2) of section 119 is that while sub-section (2) is more specific with reference to particular class of income or class of cases. The contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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