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Income Tax Appellate Tribunal, DELHI BENCH “C” NEW DELHI
Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT
This appeal by the Revenue has been directed against the order of ld. CIT(A)-XIX, New Delhi dated 18th August, 2015 for the Assessment Year 2011-12.
In this case, Assessing Officer made addition of Rs.46,87,722.36/- on account of low G.P. rate. Ld. CIT(A) however restricted the addition of Rs.6,79,359/- and thus allowed the appeal of the assessee partly.
Admittedly, the tax effect in the present appeal is less than Rs.20 lakhs. Vide Circular No.3/2018 Dated 11th July, 2018 issued by CBDT u/s.268 of IT Act, it has been directed that the Department shall not file appeal before the Tribunal in case where the tax effect does not exceed the monetary limit of Rs.20 lakhs. It is also directed that this instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in Tribunals. Pending appeals below the specified tax limit may be withdrawn/not pressed. The Ld. D.R. in view of the Board’s Circular above did not press the Departmental Appeal. The case of the Department would not fall in the exceptions provided in the above Board Circular. In the result, the Departmental appeal is not maintainable as the appeal is filed against the Board instructions referred to above and therefore, the appeal of the Department is liable to be dismissed.
In the result, appeal of the Department is dismissed.
Order Pronounced in the open Court on 1st January, 2019.