TMI Blog2017 (8) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... l not be applicable, if vires of any provisions has been quashed by impugned order or addition was made on some audit objections or the addition relates to undisclosed foreign assets/bank accounts, etc. We find that the present case does not fall within the exemption clause and the tax is less than ₹ 10 lacs. Therefore, the present appeal is not maintainable and hence dismissed. - I.T.A. No.1963/Ahd/2014 , I.T.A. No.2274/Ahd/2014 - - - Dated:- 24-8-2017 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER And SHRI MAHAVIR PRASAD, JUDICIAL MEMBER Appellant by : Shri Tushar P. Hemani, A.R. Respondent by : Shri Prasoon Kabra, Sr. D.R. O R D E R PER SHRI MAHAVIR PRASAD, JUDICIAL MEMBER : These are two cross appeals by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 2. The relevant facts as culled out from the materials on record are as under:- Assessee is engaged in ship breaking industry, whereby old and used vessels are discarded, generating mostly old used plates, melting scrap etc. Old discarded ships are bought by the assessee for dismantling purpose. The ships are purchased on the weight basis, for which, the reference was made to the weight when it was manufactured and changes if any, made during its life cycle. Most of these records are maintained in the trim stability book of the vessel. Though, the ships are purchased on weight basis, it is not possible to weigh the ship before or while taking the delivery. Hence, the ship is purchased assuming the weight mentioned in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 40,00,000/- on account of unaccounted sales of DG sets and two sets of other type of machineries. 3. Against the said order assessee preferred first statutory appeal before the learned CIT(A). Learned CIT(A) partly allowed with the action of AO but not with the quantum of addition. Hence, he estimated unaccounted sales and engines are sold after dismantling the ship. So far addition of ₹ 8,00,000/- is concerned. Learned CIT(A) has made addition on the basis of exemption. In Our considered opinion, it cannot be allowed. 4. Learned AR has taken an alternative plea that only profit element embedded in alleged unaccounted sales can be added and alternatively, impugned addition is in respect of unaccounted sales . It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. At the outset, the ld. Counsel for the assessee submitted that the appeal of the Revenue needs to be dismissed on account of low tax effect in view of the CBDT Circular No.21 of 2015 dated 10.12.2015. The ld. Departmental Representative fairly admitted that the tax effect is less than the limit prescribed by the aforesaid CBDT Circular. 9. We have heard both the parties and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of CBDT Circular No. 21/2015 in F. No.279/Misc. 142/2007-ITJ (Pt) dated 10th December 2015, vide which it has been provided that if the tax effect by virtue of the Commissioner of Income-tax (Appeals) s order is below ₹ 10 lacs, then that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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