DCIT 10(1), MUMBAI vs. KSHITIJ INVST ADVISORY CO LTD, MUMBAI

This present appeal filed by the revenue is directed against the order dated 01.08.14 of Commissioner of Income Tax (Appeals)-21, Mumbai (hereinafter called as the CIT(A) ) for assessment year 2010-11.

At the outset the Ld. AR of the assessee pointed out that the tax effect in this appeal is below Rs.10.00 lakhs. Our attention was drawn by the Ld. AR towards Kshitij Invst. Advisory Co. Ltd. the chart containing particulars of the total tax impact. The tax computation on the same as per V. G. Mehta’s Income Tax Ready Reckoner for AY 2009-10 is Rs. 9,88,194.44/- i.e. less than 10 lakhs and further submitted that in view of the CBDT Circular No.21/2015, dated 10.12.2015 brought out by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, the appeal was not maintainable and be dismissed. The Ld. DR also agreed to the submission of the ld. AR.

We have heard the rival submissions and perused the material on record. Although Ld. DR has not disputed the chart containing the particulars of total tax impact filed by the assessee and further we also find from the records before us that the tax involved in the disputed issue is below Rs.10 Lacs and therefore, in view of the circular no 21/2015 dated 10th December, 2015 no appeals should be filed by the Revenue before the Tribunal which has tax effect of Rs. 10.00 lacs or less and this circular is also applicable retrospectively to all pending appeals. The relevant extract the said CBDT Circular (Supra) is as under:- “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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.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.”