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Judgment
Per Kavitha Rajagopal, JM:
This appeal is filed by the Revenue, challenging the order of the Learned Commissioner of Income Tax (Appeals) [‘Ld. CIT(A)’ for short], National Faceless Appeal Centre (“NFAC” for short) passed u/s. 250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2015-16.
The Revenue has raised the following grounds of appeal.
“1.Whether the judgment of CIT(A) deserves to be set aside in view of the provisions of Section 148 and 144B of the Act?
2.Whether the CIT(A) has erred in considering the correct intention and interpretation of the E-Assessment Scheme notified by the Central Government under the provisions of Section 151A of the Act?
3.Whether the E-Assessment Scheme can be interpreted in a manner which is contradictory to mandate of the provisions of section 148 and 144B of the Act?
4.Whether the CIT(A) has committed an error in the absence of any express provision contained in section 144B of the Act regarding the issuance of notice u/s 148 by NFAC.
5.Whether the CIT(A) has erred in correctly interpreting the interpretation and intention of the Circulars, Notifications, Instructions and Office Memorandums issued by the Board from time to time?
6.Whether the CIT(A) has erred in law in interpreting the term 'faceless manner used in the Scheme?
7.Whether the CIT(A) has erred in considering that no prejudice has been caused to the assessee, whereas on the other hand quashing of the notices at a belated stage would cause prejudice to the department.?”
Brief facts of the case are that, the assessee is an individual and has not filed her return of income for the year under consideration. The assessee’s case was reopened under Section 147 of the Act, based on the information that the assessee had sold an immovable property for Rs. 63,00,000/- during the year under consideration for which the income has escaped assessment. The Ld. A.O. then passed the assessment order dated 28/12/2023 u/s 147 r.w. 144 r.w.144B of the Act, determining total income at Rs. 63,01,860/- after making an addition of ‘Short Term Capital Gain’.
Aggrieved by this, the assessee was in appeal before the first appellate authority who vide order dated 18/12/2024 allowed the appeal filed by the assessee on the legal ground.
The revenue is in appeal before us challenging the order of the Ld. CIT(A).
Before getting into the merits of the case, it is observed that the present appeal was covered by low tax effect as prescribed in the CBDT Circular No. 21/2015, dated 10/12/2015 which fact was also not controverted by the Ld. DR. We, therefore, are of the considered view that as the present appeal falls within the low tax effect as per CBDT Circular, the appeal filed by the revenue is liable to be dismissed on the same. We, therefore, dismiss the appeal filed by the revenue with a liberty that the revenue shall revive the said appeal, if the appeal falls under the exceptions specified in the CBDT Circular.
In the result, the appeal filed by the Revenue is hereby dismissed.