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TMI Blog2021 (1) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case, The Ld. CIT(A) was justified in deleting the additions of Rs. 90,00,000/- + interest of Rs. 1,18,330/- inspite of specific findings of the Assessing Officer in the assessment order. 3. The appellant craves leave to add to or deduct from or otherwise amend the above grounds of appeal." 2. The facts giving rise to the present appeal are that the case of the assessee was reopened for assessment, on the ground that the assessee had obtained bogus share application money of premium. Therefore, the assessment was reopened, the assessing officer was farmed the assessment u/s. 147 r.w.s. 143(3) of the Income Tax Act 1961 (hereinafter referred as the Act) while framing the assessment, assessing officer noticed that perusing the details of "Loan and Advances" it was found that the assessee company had taken 'Loan and Advances' from three companies namely M/s. Purvi finvest Ltd., M/s. East West Finvest Ltd. and M/s. Trimurti Finvest Ltd. and has charged interest thereon. The assessing officer did not accept the explanation of the assessee and made addition of Rs. 90,00,000/- in respect of the loan received from the said companies and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of appeals by the Department before the Hon'ble Income Tax Appellate Tribunal was enhanced to Rs. 50,00,000/- from the erstwhile monetary limit of Rs. 20,00,000/-1.2.2] The Hon'ble CBDT in Para 4 of the Circular No. 3/2018 dated 11th July, 2018 defined the term 'tax effect' as the difference between the tax on the total income assessed and the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed. The Circular also specifically mentioned that 'tax effect' shall be tax including applicable surcharge and cess but will not include any interest thereon. 1.2.3] The 'tax effect' involved in the present appeal as filed by the Department is computed hereunder for your ready reference: S. No. Particulars Amount [in Rs.] 1.1 Amount of assessed in the assessment order passed income under section 147 r.w.s.143(3) of the Act 1,14,65,710 1.2 Tax on the amount of income assessed inclusive of surcharge and cess 34,44,024 2.1 Amount of income as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the exception clause. He brought to our notice, Circular No. 23 of 2019 dated 06.09.2019 and Office Memorandum dated 16.09.2019, for the sake of clarity both the Circular and Office Memorandum are reproduced as under; Circular No. 23 of 2019 : F, No. 279/Misc./M-93/2018-ITJ (Pt.) Government of India Ministry of Finance Department of Revenue Central Board Direct Taxes Judicial Section New Delhi, 6th September 2019 Subject: -Exception to monetary limits for filing appeals specified in any Circular issued under Section 268A of the Income-tax Act, 1961-reg Reference is invited to the Circulars issued from time to time by Central Board of Direct Taxes (the Board) under section 268A of the Income-tax Act, 1961 (the Act), for laying down monetary limits and other conditions for filing of departmental appeals before Income Tax Appellate Tribunal (ITAT), High Courts and SLPs/appeals before Supreme Court. 2. Several references have been received by the Board that in large number of cases where organised tax-evasion scam is noticed through bogus Long-Term Capital Gain (LTCG)/Short Term Capital Loss (STCL) on penny stocks and department is unable to pursue the cases in higher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h September, 2019 and to say that by virtue of powers of the Central Board of Direct Taxes u/s. 268A of Income-tax Act, 1961, the monetary limits fixed for filing appeals before ITAT/HC and SLPs/appeals before Supreme Court shall not apply in case of assesses claiming bogus LTCG/STCL through penny stocks and appeals/SLPs in such cases shall be filed on merits. Sd/- (Abh hek Gautam) DCIT(OSD)(ITJ-1), CBDT, New Delhi. Copy to: 1. The Chairman, Members and all other officers in CBDT of the rank of Under Secretary and above. 2. All Principal Chief Commissioners of Income-tax and Director Generals of Income-tax. 3. ADG (PR, PP & OL), Mayur Bhawan, New Delhi for printing in the quarterly Tax Bulletin and for circulation as per usual mailing list. 4. The Comptroller and Auditor General of India. 5. ADG (Vigilance), Mayur Bhawan, New Delhi. 6. The Joint Secretary & Legal Advisor, Ministry of Law & Justice, New Delhi. 7. All Directorates of Income-tax, New Delhi and DGIT (NADT), Nagpur. 8. ITCC (3 copies). 9. The ADG (System)-4, for uploading on the Department's website. 10. Data Base Cell for uploading on irsofficersonline.gov.in. 11. [email protected] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 90,00,000/- is added as unexplained credits u/s. 68 of the LT. Act. Hence the amount of interest paid by the assessee for those loans taken by above mention companies of Rs. 34,521/-, Rs. 34,521/- and Rs. 49,288/respectively is disallowed and added back to the total income of the assessee for the A.Y. under reference. Penalty is initiated u/s. 271(1)(c) for concealment of income and furnishing inaccurate particulars of income.
9. Hence, from the assessment order it is evident that it is not the case where claim of bogus long term capital gain or short term capital gain is made. It could be a case of suspicious loan transaction. Since the suspicious loan transaction is not covered in the exceptions clause of CBDT circular. We find merit in the contention of the Ld. counsel for the assessee. Hence, we hold that the present appeal is not maintainable in view of the monetary limit prescribed by CBDT Circular No. 17 of 2019 dated 8th August 2019. The appeal in ITA No. 931/Ind/2019 is dismissed as not maintainable.
10. In result, appeal filed by the assessee is dismissed as not maintainable.
Order was pronounced in the open court on 08.01.2021. X X X X Extracts X X X X X X X X Extracts X X X X
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