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Income Tax Appellate Tribunal, DELHI BENCH “D”, NEW DELHI
Before: SH. S. V. MEHROTRA & SMT. BEENA A. PILLAI
ORDER PER BENCH: The appellant (hereinafter referred to as 'the Revenue') by filing 1. aforesaid appeals, sought to set aside the impugned order dated 23.10.2009 passed by Ld. CIT(A), Faridabad, qua the Assessment Year 2001-02 and 2002-03.
Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.21/2015 dated 10th December 2015 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.10,00,000/- and this factual position has been fairly conceded by the Ld. D.R. At the outset Ld. AR has submitted Tax Effect Calculation for both the years under consideration which has been reproduced as under:
Knorr Bremse System (CV) India P Ltd AY 2001-02 and AY 2002-03 Tax Effect Calculation 2001-02 2002-03 Rs.13396115 Relief Granted by CIT(A) Rs.1805567 (CIT(A) order Pg.23 Para 11) (Gr.3) (Gr.3) 35% Tax Rate 35% Tax Rs.468865 Rs.631948 Surcharge 13% 2% 9377 82153 Surcharge 714101 Total 478242
On perusal of material on record, CBDT Circular (supra) shows that monetary limit for filing the appeal by Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised and the relevant portion of the aforesaid circular is extracted as under:
"3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: S.No. Appeals in Income-tax matters Monetary Limit (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 Pending appeals below the specified tax limits in para 3 above may be withdrawn / not pressed.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. "
In view of the CBDT Circular No.21, dated 10.12.2015 having retrospective effect and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.10,00,000/- hence, the aforesaid appeal filed by Revenue is hereby dismissed having been become infructuous.