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Income Tax Appellate Tribunal, DELHI BENCH ‘ F ’, NEW DELHI
Before: SHRI H.S. SIDHU & SHRI L.P. SAHU
ORDER
PER H.S. SIDHU, JM
The Department has filed this Appeal which is emanate from the Order dated 02.3.2015 of Ld. CIT(A)-7, New Delhi pertaining to assessment year 2009-10. The grounds raised
in the revenue’s appeal read as under:-
1. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in law in deleting the VAT incentive of Rs. 26,93,562/- claimed by the assessee for computation of deduction u/s. 80IC, moreso in view of the fact that in AY 2007- 08, the Ld. CIT(A) has confirmed the action of the AO in its own case of the assessee.
2. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 26,246/- without appreciating the fact that the assessee was required to deduct tax u/s. 194C of the I.T. Act, on the payment to the Pest Control Contractor.
3. The appellate craves to be allowed to add any fresh ground of appeal and / or delete or amend any of the grounds of appeal.
2. On perusing the aforesaid grounds, we find that the tax effect in the Revenue’s Appeal is less than Rs.10,00,000/-, therefore, the Department’s Appeal is not maintainable, in view of the Circular No. 21/2015 dated 10th December, 2015 issued vide F.No. 279/Misc. 142/2007-ITJ (Pt.) by the CBDT. For the sake of convenience, the relevant para nos. 3 & 10 of the aforesaid CBDT’s Circular are reproduced as under:- “3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: Monetary Limit S No Appeals in Income-tax matters (in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.
This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.”
It is not in dispute that the Board’s instruction or directions issued to the income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/ not pressed the present Appeal, in view of the aforesaid instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs, prescribed in the above said CBDT’s Instructions.
Keeping in view the CBDT Instruction No. 21/2015 dated 10th December, 2015, we are of the view that the Revenue should have withdrawn/ not pressed the instant appeal before the Tribunal. We are also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. Accordingly, the Revenue’s Appeal is dismissed.
In the result, Appeal filed by the Revenue Stands dismissed. Order pronounced on 20/06/2018.