THE ITO-5(2), INDORE vs. SHRI NARENDRA KUMAR AGRAWAL, INDORE

During the course of hearing, the learned Counsel for the assessee has submitted that tax effect in this appeal is below the prescribed limit so the Department ought not to have filed this appeal in view of the instructions issued by C.B.D.T. and judgments of various High Courts and Supreme Court.

The Learned D. R. could not controvert the above fact. 4. We have heard the rival contentions and perused material on record and gone through the orders of the authorities below. It is noticed from the record that present appeal is not maintainable on account of low tax effect. Ld. DR has not demonstrated that the present case falls into any exceptions embodied into the circular No. 3 of 2018 dated 11.07.2018. We noted that in this case the tax involved is below the prescribed limit i.e. Rs. 20 lacs as contained in Central Board of Direct Taxes vide Circular No. 3 of 2018 dated 11.07.2018. In pursuance with the power entrusted u/s. 268A of the Income Tax Act that no appeal should be filed before the Tribunal in case tax effect does not exceed Rs.20 lac. The “tax effect” in this regard means the difference between the tax on the total income assessed and the tax that what have been chargeable had

In the impugned case, we note that the tax effect on the issue under dispute does not exceed Rs.20 lac. In view of this fact as per the instruction, the Revenue is not supposed to press the appeal. We, therefore, dismiss the appeal filed by the Revenue in limine without going into the merits of the case as in our opinion the circulars issued by CBDT are binding on the departmental officers in view of the provision of Section 268A(1) of the Act. The said view has been taken by Hon’ble Supreme Court in the case of Navneet Lal Zaveri Vs. AAC 56 ITR 198 (SC). Hon'ble 3

In the result, the appeal of the Revenue is dismissed.