DCIT, CC-2(3), KOLKATA, KOLKATA vs. M/S SHREE JAGDAMBA COKE INDUSTRIES PVT. LTD., KOLKATA

This is an appeal filed by the revenue against the order of Ld. CIT(A)-20, Kolkata dated 22.05.2015 for AY 2012-13.

At the outset, Ld. Counsel for the assessee submitted that the tax effect involved in this appeal of revenue is less than Rs. Ten lakhs. Hence, departmental appeals should not be allowed to be proceeded with. We find that the appeal of the revenue falls in the ken of the CBDT Circular no. 21/2015 dated 10.12.2015, wherein the CBDT has directed the department to withdraw/not press the appeal if the tax effect is less than Rs. 10 lacs before the ITAT. On perusal of the Circular No. 21 / 2015 dated 10.12.2015 and the materials available on record, we find that the revenue’s case does not fall under any of the exception clause as provided in the circular, as this is covered. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. This position has been confirmed by the Hon’ble Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC). Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No.21 / 2015 dated 10.12.2015. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case. In case the revenue later