Tribunal dismisses Revenue's appeal due to tax limit; assessee's cross objection also rejected.

The Tribunal dismissed both the Revenue's appeal and the assessee's cross objection as the tax effect was below the prescribed limit per CBDT Circular No. 3 of 2018. The Revenue's challenge on the consideration of transfer as a gift was not maintainable due to the tax effect falling below the specified threshold of Rs. 20 lakhs. The assessee's objection under section 148 of the IT Act, 1961 was also dismissed as they chose not to press the grounds during the hearing. The case concluded on 29/08/2018 with the Tribunal's decision.

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Issues:
1. Whether the deletion of addition of short term and long term capital gain by the ld. CIT(A) was justified.
2. Whether the consideration of transfer as a gift by the ld. CIT(A) was justified.
3. Maintainability of the appeal by the Revenue due to the tax effect not exceeding Rs. 20 lakhs as per CBDT Circular No. 3 of 2018.

Analysis:
1. The first issue pertains to the deletion of additions of short term and long term capital gain by the ld. CIT(A). The Revenue's appeal questioned the justification of deleting additions amounting to Rs. 37,98,283 and Rs. 18,99,142 made by the Assessing Officer. The Tribunal noted the grounds of appeal raised by both the Revenue and the assessee. The assessee's cross objection challenged the initiation of proceedings under section 148 of the IT Act, 1961. However, during the hearing, the assessee decided not to press the grounds of the cross objection, leading to their dismissal.

2. The second issue involves the consideration of the transfer as a gift by the ld. CIT(A). The Revenue's appeal faced a challenge regarding the maintainability due to the tax effect not exceeding Rs. 20 lakhs as per CBDT Circular No. 3 of 2018. The ld. AR of the assessee raised an objection based on the prescribed limit set by the circular. Both parties acknowledged that the tax effect in the Revenue's appeal was below the specified threshold. The CBDT Circular emphasized that departmental appeals with a tax effect not exceeding Rs. 20 lakhs should either be withdrawn or not pressed. Since the tax demand in question fell below the limit, the appeal of the Revenue was deemed not maintainable, leading to its dismissal.

3. In conclusion, the Tribunal dismissed both the appeal of the Revenue and the cross objection of the assessee due to the tax effect being below the prescribed limit as per CBDT Circular No. 3 of 2018. The decision was based on the specific instructions provided in the circular, emphasizing the threshold for departmental appeals. The order was pronounced in open court on 29/08/2018, marking the conclusion of the case.

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