ACIT, NEW DELHI vs. MS. SHAKTI DALMIA, NEW DELHI

Assessee by : Smt. Shaveta Nakra Dutta, Sr. DR Respondent by: Sh. Divya Gujrat, CA Date of Hearing 18/01/2017 Date of pronouncement 18/01/2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal filed by the Department is directed against the order dated 20.11.2013 of ld CIT (A)-XXI, New Delhi for the Assessment Year 2006-07. 2. The assessee has raised the following grounds of appeal:- “

1. CIT(A) has erred in directing the AO to adopt FWV of shares of Edward Keventers(s) Pvt. Ltd @1675/- per share instead of Rs. 10/- adopted by the AO for computing Long Term Capital Gain.”

3. At the outset of the hearing itself, the ld. DR brought to our attention that CBDT vide Circular No.21/2015 dated 10th December, 2015 has decided that the revenue would not prefer an appeal before the Tribunal if the tax effect is less than Rs.10 lakhs. Therefore, he pleaded that the appeal of the revenue be decided as per the instruction of the CBDT. Ld AR also reiterated same facts.

4. We have heard both the sides on the issue and perused the material. We find that the CBDT vide circular dated 10.12.2015 has revised the monetary limit for filing the appeal by the department before Income Tax Appellate Tribunal, Hon’ble High Courts and Hon’ble Supreme Court. The relevant para of the aforesaid circular is 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 :-

Sl.No. Appeals in Income-tax Monetary Limit(in matters 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.”