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Judgment
PER SUDHIR KUMAR, JM:
The Revenue has filed the Appeal and Assessee has filed the Cross Objection against the Order of the Ld. CIT(A), dated 11.7.2025, relating to assessment year 2013-14.
The grounds raised in the Revenue’s appeal read as under:-
1.The Ld. CIT(A) has erred in deleting the addition of Rs. 40,00,000/-made by the AO u/s. 68 of the Act on account of bogus purchase/ accommodation entry received from M/s Purus Marketing Pvt. Ltd.
2.The Ld. CIT(A) further erred in deleting the addition of Rs. 80,000/- made by the AO on account of commission paid for taking accommodation entries, though such commission payment is a normal practice in such cases.
3.That the order of the CIT(A) is erroneous and is not tenable on facts and in law.
4.That the grounds of appeal are without prejudice to each other.
At the outset, Ld. AR for the assessee submitted that the tax effect involved in this appeal is below the prescribed limit of Rs. 60 lacs, as stipulated in CBDT Circular No.09/2024 dated 17.09.2024 in filing the appeal before the Tribunal, hence, the appeal of the revenue may be dismissed. Ld. DR did not controvert the aforesaid proposition.
After hearing the rival contentions, perusing the records and keeping in view of the aforesaid factual matrix, we deem it fit and proper to dismiss the appeal of the Revenue in the light of the Circular No.09/2024 of the CBDT dated 17.09.2024, as not maintainable. Resultantly, the appeal of the Revenue is dismissed. However, if on a later date, the Revenue finds that the tax effect in dispute in the aforesaid appeal is more than the limit prescribed or it is protected by any of the exceptions provided in the CBDT Circular, the Revenue shall be at liberty to approach the Tribunal for recalling the order and reinstitution of the appeal for adjudication on merits. The Tribunal shall consider such application, as per the extant law.
As regards assessee’s Cross objection is concerned, since we have already dismissed the appeal of the Revenue on account of low tax effect, as aforesaid, hence, no demand remains against the assessee at present. Therefore, the cross objection filed by the assessee has become infructuous and dismissed as such.
In the result, the revenue’s appeal as well as assessee’s cross objection both are dismissed in the very terms, as aforesaid.