Tribunal decision: Revenue appeals dismissed, assessee cross appeals partly allowed. Tax effect below Rs. 20 lakhs not maintainable.

The Tribunal dismissed the revenue's appeals on income estimation and depreciation on crates. It partly allowed the assessee's cross appeals on interest for crate loans and dismissed other grounds. Appeals with tax effects below Rs. 20 lakhs were deemed not maintainable, leading to the dismissal of related cross objections.

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Issues Involved:
1. Estimation of income for the assessee engaged in fish trading and packing.
2. Allowance of depreciation on crates.
3. Interest on bank loans for the purchase of crates.
4. Tax effect and maintainability of the revenue's appeal.

Detailed Analysis:

1. Estimation of Income:
The revenue contested the reduction of the profit estimation rate from 1% to 0.4% by the CIT(A). The Assessing Officer (AO) had initially estimated the income at 1% of the gross sales after rejecting the assessee's books of accounts, which were not maintained regularly. The CIT(A) observed that in similar cases within the same region, the net profit was estimated between 0.25% to 0.4%. The CIT(A) referenced comparable cases, including that of Mr. Abdul Kalam Azad, where the AO had estimated the income at 0.4%. The Tribunal upheld the CIT(A)'s decision, stating that the department did not provide evidence to justify a higher estimation rate. Thus, the appeal by the revenue on this ground was dismissed.

2. Allowance of Depreciation on Crates:
The AO had separately computed the rental income from crates but did not allow any related expenditure. The CIT(A) directed the AO to allow depreciation on the crates. The revenue argued that this issue was not before the CIT(A). However, it was found that the assessee had indeed raised this issue in their appeal (ground No.10). The Tribunal upheld the CIT(A)'s decision to allow depreciation, dismissing the revenue's appeal on this ground.

3. Interest on Bank Loans for Purchase of Crates:
The assessee argued that the AO should allow interest on bank loans used to purchase crates, in addition to depreciation. The Tribunal noted that the AO had assessed income from fish trading and crates separately but did not allow related expenses. The Tribunal remitted the issue back to the AO to verify and allow the interest on borrowed capital for acquiring crates, thus partly allowing the cross appeal of the assessee.

4. Tax Effect and Maintainability of Revenue's Appeal:
For one of the appeals (I.T.A. No.364/Viz/2017), the tax effect was below Rs. 20 lakhs. As per the latest CBDT circular, such appeals are not maintainable. The Tribunal dismissed this appeal as not maintainable. Consequently, the related cross objection by the assessee was also dismissed as infructuous.

Conclusion:
The Tribunal dismissed the revenue's appeals regarding the estimation of income and depreciation on crates. It partly allowed the assessee's cross appeals concerning interest on bank loans for crates and dismissed other grounds as not pressed. The appeals with tax effects below Rs. 20 lakhs were dismissed as not maintainable, rendering related cross objections infructuous.

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