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Income Tax Appellate Tribunal, “C” BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN
आदेश/ O R D E R
PER S. JAYARAMAN, ACCOUNTANT MEMBER:
The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals)-2, Chennai in dated 31.10.2016 for assessment year 2007-08.
Shri. K. Ramgopal, the assessee, is a Cottom Dealer. The issue in this appeal is about the computation of long term capital gains, wherein the :- 2 -: AO. However, the Ld. CIT(A) directed the AO to grant deduction on investment made on house construction u/s. 54 and allowed the appeal. Aggrieved, the Revenue filed this appeal pleading that the Ld. CIT(A) erred in directing the AO to allow the claim of deduction u/s. 54, even though, the assessee had not invested entire capital gains within the due date as mentioned u/s. 54 and also not within the due date for filing the return u/s. 139(1). At the time of hearing, the Ld. DR submitted that the tax effect involved in this appeal is less than Rs. 20 lakhs.
The CBDT in its latest Circular No. 3/2018 dated 11.07.2018 instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than Rs. 20 lakhs.
We heard the above submissions, we are of the considered opinion that the Circular of the CBDT, supra, is binding on the officers of the Department.
Therefore, the Revenue cannot proceed further in this appeal. Accordingly, the appeal filed by the Revenue stands dismissed.
In the result, the appeal filed by the Revenue is dismissed.
Order pronounced in the Open Court on 17th September, 2018 at Chennai.