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2017 (12) TMI 1791 - ITAT VISAKHAPATNAMMaintainability of appeal by revenue - low tax effect - addition u/s 40A assessee purchased agricultural land and payments towards such purchases were made in cash - CIT-A deleted the addition - HELD THAT:- The CIT's have to record their decision issue-wise and also notice tax effect and forward relevant authorisation letter and grounds of appeal to the concerned. 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 10.12.2015, whereas in the subsequent circulars i.e. Circular No.5/2017 dated 23.01.2017, the Board clarified that filing of appeals in cases where there is revenue audit objection should not be a matter of routine. No evidence whatsoever is placed even before us to prove that the facts determined by Ld.CIT(A) are perverse. AO is bound by the Circular issued by CBDT and he could not have preferred appeal in a case whether the tax effect is less than the specified limit and that too in the routine manner. It is also doubtful as to whether the Commissioner concerned has directed the AO to raise this ground. It does not emanate from the authorisation issued by the Commissioner. Even on merits we do not find any infirmity in the finding of CIT(A) that the disallowance is not permissible in this year. Appeal filed by the revenue is dismissed as unadmitted.
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