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TMI Blog2017 (12) TMI 1791X X X X Extracts X X X X X X X X Extracts X X X X ..... and tax payable thereon works out to Rs. 1,41,164/- excluding interest chargeable u/s 234A, 234B and 234C of the Act. The assessee purchased agricultural land during the Financial Year 2004-05 and payments towards such purchases were made in cash. Subsequently, the lands were converted into non agricultural lands by making lay outs and by treating it as stock in trade. The case of the assessee was that at the time of purchase of land it was not for the purpose of carrying on real estate business and hence, the provisions of section 40A(3) would not be applicable; at any rate, it was not incurred during the relevant Financial Year. The assessing officer(AO) rejected the contention of the assessee, whereas the Ld.CIT(A) verified the details a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to the methodology to be followed by Commissioner while authorising the AO to file an appeal. Commissioners have to ensure that appeals to ITAT are filed only when there is proper justification; An appeal need not be filed on the ground that there is revenue audit objection, unless the findings of CIT(A) are perverse in the opinion of Pr.CIT and such reasons are to be recorded. It was also recommended that while giving the comments, the CITs should ensure mentioning the detailed grounds of appeal to the AO so as to enable him to file appeal only on such grounds. Items 7 and 8 of the instructions, regarding Standard Operating Procedure for filing appeal, are relevant in this connection which are reproduced hereunder : "7. Decision by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is below the prescribed limit, the case falls under the exceptions (to be specified) of the Instruction of CBDT on monetary limits. iii. Authorisation under section 253(2) of the I.T.Act is issued separately. Appeal to be filed accordingly." 3.1. On careful perusal of the same it indicates that the CITs have to record their decision issue-wise and also notice tax effect and forward relevant authorisation letter and grounds of appeal to the concerned. 3.2. Since the grounds have to be specified by the Commissioner, if the tax effect is low, reasons as to why an appeal is to be preferred even on matters concerning appreciation of facts, such as the present matter, needs to be recorded. The AO relied upon CBDT Instruction 21/2015 dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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