ITA No.-3648/Del/2018
Shri Bharat Bhushan Sawhney

IN THE INCOME TAX APPELLATE TRIBUNAL

(DELHI BENCH: ‘A’: NEW DELHI)

BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
AND

SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER

ITA No:- 3648/Del/2018
(Assessment Year: 2014-15)

Deputy Commissioner Shri Bharat Bhushan Sawhney,

of Income Tax, Vs. C-56, New Sabzi Mandi,

Circle 36(1), Azadpur, Delhi.

New Delhi. PAN No. AHCPS8691Q

APPELLANT RESPONDENT

Revenue By : Shri N.K. Bansal, Sr. DR
Assessee By : None

Per Anadee Nath Misshra, AM

(A) This appeal by Revenue is filed against the impugned order of Learned
Commissioner of Income Tax (Appeals)-12, New Delhi, [“Ld. CIT(A)”, for short], dated
20.12.2017 for Assessment Year 2014-15. The grounds of appeal are as under: -

1. “The Ld. CIT(A) erred in law and in the facts in deleting the addition of
Rs. 74,31,496/- merely on the ground that when separate addition is
already made on unaccounted cash of Rs. 7,76,450/- and unaccounted
stock of Rs. 72,23,450/- there is no locus standi to make separate GP
addition without appreciating the fact that even such addition of these
items in gross profit do not compensate for 300% abnormal wastage

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ITA No.-3648/Del/2018
Shri Bharat Bhushan Sawhney

shown in fruits and vegetables sold amounting to Rs. 6,82,22,260/- which
is abnormal in comparison to growth of sale of only 20% and in
comparison to previous year loss of only Rs. 2,16,15,370/- and also
explanation given in this regard of heavy rainfall as the cause of such
wastage is untenable as the assessee is not grower of fruits and
vegetables but merely a vendor who secures such fruits and vegetables in
cold storage and in this circumstances addition of GP was justified.
Reliance is placed on the decision of the Hon’ble Supreme Court in the
case of Brijbhushan Lal Praduman Kumar vs. CIT [1978] 115 ITR 524 and
State of Kerala Vs. C. Velukutty [1996] 60 ITR 239. Further reliance is
also placed on the decision of Delhi ITAT E-Bench in the case of ACIT Vs.
Sunder Chemical and Agarbati Works Pvt. Ltd. [2015] 146 Taxman 11
(Delhi) and ITAT Amritsar Bench in the case of Jagan Nath Gurbachan
Singh Vs. ITO [2001] 73 ITJ 878.
2. Notwithstanding, the tax effect is also above the monetary limit as
prescribed by the CBDT circular No. 21/2015 dated 10.12.2015, therefore,
further appeal is recommended in this case.”
(B) At the outset, it was brought to our notice at the time of hearing, by learned
Senior Departmental Representative (“Sr. DR”, for short) for Revenue; that tax effect in
this appeal is below Rs. 50,00,000/-. Vide recent CBDT Circular No. 17/2019 dated
08.08.2019 read with earlier CBDT Circular No. 3 of 2018, dated 11.07.2018, minimum
threshold limit of tax effect for filing of appeals by Revenue in Income Tax Appellate
Tribunal (“ITAT”, for short) has been enhanced to Rs. 50,00,000/-. In a subsequent

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ITA No.-3648/Del/2018
Shri Bharat Bhushan Sawhney
clarification issued by CBDT vide F.No. 279/Misc/M-93/2018-ITJ, dated 20/08/2019, it
has been clarified by CBDT that the aforesaid revised monetary limit is also applicable
to all pending appeals in ITAT. In view of the foregoing, it was submitted by Ld. Sr. DR
for Revenue, that this appeal is not maintainable. He did not press the appeal.
Therefore, this appeal is dismissed being not pressed; and also being not maintainable
having regard to aforesaid CBDT Circular No. 17/2019 dated 08.08.2019 read with
aforesaid CBDT Circular No. 3 of 2018 in the light of aforesaid clarification dated
20/08/2019.

(C) Before leaving, we clarify that Revenue will be at liberty to approach Income Tax
Appellate Tribunal U/s 254(2) of Income Tax Act, 1961; seeking recall of this order and,
for restoration of this appeal if it is found that appeal of Revenue is not covered by
aforesaid CBDT Circulars dated 08.08.2019 and 11.07.2018.

(D) In the result, this appeal by Revenue is dismissed. Our decision was orally
pronounced in the Open Court in the presence of learned Sr. DR, after conclusion of
hearing on 23.08.2021. Now, this written order is signed today on 23/08/21.

Sd/- Sd/-
(KUL BHARAT) (ANADEE NATH MISSHRA)
JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated: 23/08/21 Page 3 of 5
*Kavita Arora, Sr. PS

Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals) ITA No.-3648/Del/2018
5. DR: ITAT Shri Bharat Bhushan Sawhney

ASSISTANT REGISTRAR
ITAT NEW DELHI

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ITA No.-3648/Del/2018
Shri Bharat Bhushan Sawhney

Date of dictation 23.08.2021

Date on which the typed draft is placed before the 23.08.2021
dictating Member
Date on which the typed draft is placed before the
Other Member

Date on which the approved draft comes to the Sr.
PS/PS

Date on which the fair order is placed before the
Dictating Member for pronouncement

Date on which the fair order comes back to the Sr.
PS/PS
Date on which the final order is uploaded on the
website of ITAT

Date on which the file goes to the Bench Clerk

Date on which the file goes to the Head Clerk

The date on which the file goes to the Assistant
Registrar for signature on the order

Date of dispatch of the Order

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