Case Law Details
ITO Vs Sun Gold Capital Limited (ITAT Ahmedabad)
The case of ITO vs. Sun Gold Capital Limited was brought before the Income Tax Appellate Tribunal (ITAT) Ahmedabad, where the Revenue challenged the decision of the Commissioner of Income Tax (Appeals) [CIT(A)]. The primary issues raised included the validity of proceedings under Section 148 of the Income Tax Act, the deletion of additions amounting to ₹1.32 crore and ₹25.65 lakh under Section 68 for unexplained cash credits, and the alleged denial of cross-examination. However, during the appeal, it was observed that the total tax effect involved was ₹52.28 lakh, which is below the ₹60 lakh threshold set by CBDT Circular No. 09/2024 dated 17.09.2024. As per this circular, appeals with tax effects below the prescribed limit are subject to withdrawal unless they fall under specified exceptions.
Given the applicability of the CBDT circular, the ITAT Ahmedabad dismissed the Revenue’s appeal, noting that the department retains the right to restore the appeal if an exception applies. The order was pronounced in an open court on 11.02.2025. This decision underscores the importance of the monetary limits set by the CBDT for departmental appeals, ensuring that only cases with significant tax implications proceed further.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The captioned appeal has been filed by the Revenue against the order passed by the Ld. Commissioner of Income Tax (Appeals), Ahmedabad/National Appeal Centre, Delhi passed for the Assessment Year 2016-17.
2. The Revenue has taken the following grounds of appeal:-
1. The Ld. CIT(A) has erred in holding that the proceedings u/s 148 of the IT Act are void ab The Ld. CIT(A) has further erred in quashing the notice issued u/s 148 of the Income tax Act, 1961.
2. The Ld. CIT(A) has erred in law and on facts in deleting the additional Rs 1,32,50,000/- made on account of unexplained cash credits u/s on of the Income tax Act, 1961.
3. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs 25,65,000/ made on account of advance treated as unexplained cash credit u/s 68 of the Income tax Act, 1961.
4. The Id CIT(A) has erred in law and on facts by holding that no cross examination of facts was provided to the assessee, which is contrary.
5. The appellant craves leave to add, alter and/or to amend all or any the ground before the final hearing of the appeal.
3. At the outset, it has been observed that as per Form No.36 the Tax Effect involved in the Departmental Appeal is Rs.52,28,913/- which is less than the Rs.60,00,000/- and liable to be withdrawn as per the recent CBDT Circular No.09/2024 dated 17.09.2024. The Revenue is at liberty to restore the appeal, in case of any exceptions as mentioned in above Board Circular.
4. In the result, the appeal filed by the Revenue is dismissed.
This Order pronounced in Open Court on 11.02.2025
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