ITO (EXEMPTIONS), NEW DELHI vs. M/S. INSTITUTE OF ROAD TRAFFIC EDUCATION, NEW DELHI

I have heard the rival submissions and perused the relevant material on record. I find that pursuant to the mandate of section 268A, the CBDT has issued Circular No. 21 of 2015 dated 10.12.2015 with retrospective effect, revising the monetary limit to Rs.10,00,000/- for not filing appeals before the Tribunal. I further find that as the tax effect involved in the instant appeal is less than Rs.10,00,000/-, the extant appeal is not maintainable. The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.10,00,000/-.

From para 10 of the above Circular it is palpable that the Instruction is applicable to the pending appeals also with CO NO.50/Del/2016 retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. Going by the prescription of the aforenoted Circular, I am of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit for not filing the appeals. Ex conseqeunti I dismiss the instant appeal without going into merits of the case.

The Cross Objection filed by the assessee is dismissed as having become infructuous, as admitted by the ld. AR.