TMI Blog2019 (8) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... ened on the basis of revenue audit objection and in such circumstances, the same would be covered under the exception mentioned in the Circular No.3/2018 of the C.B.D.T. The Circular No.3/2018 issued by the Government of India, Ministry of Finance dated 11th July, 2018 is with respect to the revision of monetary limits for filing of the appeals by the department in the Income Tax Appellate Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. The respondent assessee although served with the notice issued by this Court, yet has chosen not to appear before this Court either in person or through an advocate and oppose this tax appeal at the instance of the Revenue. 2. This tax appeal under Section 260A of the Income Tax Act, 1961 [for short ' the Act, 1961' ] is at the instance of the Revenue and is dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1; in short the Act . 2. The Revenue's sole substantive ground challenges the lower appellate order deleting the addition made on account of disallowance of cash payment of ₹ 4,35,000/toward legal fees invoking provisions of section 40A(3) of the Act. There is no dispute that the net tax effect in the instant appeal is less than ₹ 10 lacs. We find that the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned senior standing counsel appearing for the Revenue pointed out that the case was reopened on the basis of revenue audit objection and in such circumstances, the same would be covered under the exception mentioned in the Circular No.3/2018 of the C.B.D.T. 7. The Circular No.3/2018 issued by the Government of India, Ministry of Finance dated 11th July, 2018 is with respect to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Department, or ( d) Where the addition relates to undisclosed foreign assets/ bank accounts. 8. In such circumstances referred to above, the Appellate Tribunal ought to have decided the issue on merits rather than dismissing the appeal on the ground of low tax effect. 9. This appeal succeeds and is hereby allowed. The impugned order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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