ACIT, NEW DELHI vs. M/S. STERLING ORNAMENTS PVT. LTD., NEW DELHI

During the course of hearing, the ld. DR, although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.10,00,000/-. The ld. AR of the assessee, on the other hand, contended that the appeal of the revenue is not maintainable by virtue of Circular of CBDT No. 21 of 2015 dated 10.12.2015, revising the monetary limit to Rs.10,00,000/- for not filing appeals before the Tribunal.

After considering the submissions of both the parties and the material on record, we find that the above circular of CBDT on pecuniary limit has now statutory force within the provisions of section 268A of the IT Act. These instructions are operative retrospectively to the pending appeals also. It goes without saying that the Board’s instructions or directions issued to the income-tax authorities are binding upon them. Going by the prescription of the afore-noted Circular, and without going into merits of the case, we dismiss the instant appeal filed by the Revenue as tax effect involved in this appeal is less than Rs.10.00 lacs and DR. was also agreed for dismissing to the appeal as per above noted circular.

In the result, the appeal of the Revenue stands dismissed. Order pronounced in the open court on 30.11.2017.