CBDT Instruction No. 5/2014 dated 10.07.2014 on subject of monetary limit for filing appeals is applicable on pending cases also
Brief of the case:
The issue before tribunal is regarding deletion of addition made on account of unexplained cash found in bank account of the assessee. ITAT observed that the addition was deleted by CIT (A) and revenue is in appeal. During the course of appellate proceedings AR argued that revenue could not file this appeal as the tax effect in this appeal is below to monetary limit prescribed by CBDT for filing appeal. After considering the instruction issued by CBDT on this subject ITAT dismissed the appeal as non-maintainable.
Facts of the case:
During the course of assessment proceedings AO found certain cash deposited in the bank amount of the assessee. Being dissatisfied from the explanation of the assessee AO added the amount as unexplained cash deposited.
Contention of the revenue:
CIT (A) has erred in deleting the addition as assessee failed to produce cogent explanation regarding cash deposit in the bank account.
Contention of the assessee:
The tax effect in this appeal is less than Rs. 4,00,000/-, therefore, the department ought not to have filed this appeal in view of the circular issued by the CBDT and the provisions contained in Section 268A.
Held by CIT (A):
CIT (A) deleted the addition after considering the submission of assessee and case laws relied upon in support of the arguments.
Held by ITAT:
Keeping in view the CBDT Instruction No. 5 of 2014 dated 10.07.2014 and also the provisions of Section 268A of Income Tax Act, 1961, ITAT held that the Revenue should not have filed the instant appeal before the Tribunal. While taking such a view ITAT followed decisions of Hon’ble Punjab & Haryana High Court:-
1. CIT v Oscar Laboratories P. Ltd (2010) 324 ITR 115 (P&H)
2. CIT v Abinash Gupta (2010) 327 ITR 619 (P&H)
The Hon’ble Delhi High Court in the case of CIT v. Delhi Race Club Ltd. in ITA No.128/2008, order dated 03.03.2011 by following the earlier order dated 02.08.2010 in ITA No.179/1991 in the case of CIT vs. M/s. P.S. Jain & Co. held that instruction no. 5/14 dated 10.07.2014 would also be applicable to pending cases.