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2015 (5) TMI 112 - ITAT DELHIBogus transactions - Addition on expenditure for purchase of packing material - Unexplained share application money - Applicability of revised monetary limits for filing appeal to Tribunal at ₹ 4 Lacs - Instruction No. 5/14 issued by the CBDT on 10.7.2014 - Held that:- It is indisputable fact during the course of assessment proceedings, the Assessing Officer had issued summon to M/s S.R. Enterprises (seller of packing material). The notices were returned unserved and same was duly intimated to the assessee. The two Inspectors who carried out local enquiries on 18.10.2010 also could not locate the address of M/s SR Enterprises given by the assessee. None of the outlets in the area had ever heard of M/s SR Enterprises. In the course of appellate proceeding, the assessee had given an affidavit of Sri Rajnish Tyagi, detailing the dealings of the assessee with that of M/s SR Enterprises. It was categorically found by the Assessing Officer in the course of remand proceeding that Sri Rajnish Tyagi was no way connected with either of M/s SR Enterprises nor the assessee. The Bank account of M/s SR Enterprises also was verified by the Assessing Officer. It was noted the amount that was received from the assessee was withdrawn immediately by cash. Though the goods were sold in beginning of the financial year by SR Enterprises no payment was made by the assessee during the entire financial year. Some payments were made in the subsequent year to M/s SR Enterprises and as mentioned earlier the beneficiaries of these payments could not verified. The findings of the Income Tax authorities have clearly established that so called purchases made by the assessee from M/s SR Enterprises are nothing but bogus transactions, just to inflate the expenses. - Decided against the assessee. Applicability of revised monetary limits for filing appeal to Tribunal at ₹ 4 Lacs by revenue - In view of the order of the Tribunal in the case of Sushila Saraogi [2014 (11) TMI 294 - ITAT KOLKATA] which have elaborately considered the identical issue, we hold that instruction No. 5/2014 issued by the CBDT on 10.7.2014 is applicable to the pending appeals. In the instant case, the tax effect being below ₹ 4 lacs, without going into the issue on merit, we dismiss the appeal of the revenue in liminee. It is to be mentioned that Ld. DR was unable to point out any exceptional circumstances /situation (mentioned inboard instruction No. 5 /2014) for filing an appeal despite the monetary limit being below the prescribed limit. - Revenue appeal dismissed.
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