ITO, MADURAI vs. M/S. P. NAVANEETHAKRISHNAN (HUF), MADURAI

This appeal by the Revenue is directed against the order passed by the learned Commissioner of Income Tax (Appeals)-2, Madurai dated 04.03.2016 in for the assessment year 2008-09 passed U/s.250(6) r.w.s. 143(3) & 147 of the Act.

The Revenue has raised several grounds in its appeal, however the crux of the issue is that the Ld.CIT(A) has erred in holding that the income from sale of land by the assessee is only an isolated transaction and therefore it cannot be considered as business income of the assessee.

At the outset, the Ld.AR submitted before me that the appeal is not maintainable due to the Circular No.21/2013 dated 10.12.2015 issued by the CBDT with respect to monetary limit. Hence, it was pleaded that the appeal of the Revenue may be dismissed. The Ld. DR could not controvert to the submission of the Ld.AR.

After hearing I find merit in the submission of the Ld.AR. The CBDT has directed the Revenue not to file appeal before the Tribunal where the tax effect does not exceed Rs.10 lakhs. In the case of the assessee the tax effect is much less than Rs.10 lakhs stipulated by the CBDT in the circular supra. Therefore, I hereby hold that the appeal filed by the Revenue is not maintainable.

In the result the appeal filed by the Revenue is dismissed.