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Income Tax Appellate Tribunal, MUMBAI BENCHES “B”, MUMBAI
Before: Shri P K Bansal, VP & Shri Pawan Singh, JM
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “B”, MUMBAI
Before Shri P K Bansal, VP & Shri Pawan Singh, JM ITA No. 201/Mum/2011 Assessment Year : 2006-07 Asst. CIT Central Circle 17 & 28 Nandlal Tolani Charitable Trust Mumbai 10-A, Bakhtawar, Vs. Nariman Point, Mumbai 400 021
PAN : AAATN0043Q (Appellant) (Respondent)
Appellant By : Shri V K Agarwal Respondent By : Shri Rajiv Khandelwal & Shri Neelkanth Khandelwal
Date of Hearing :30.05.2017 Date of Pronouncement : 31.05.2017
O R D E R Per P K Bansal, Vice-President:
This appeal has been filed by the Revenue against the order of CIT(A)-
39, Mumbai, dated 29.10.2010, relating to assessment year 2005-06.
At the very outset, we noted that in this case the tax effect on the
income under dispute is less than Rs.10 lac. We further noted that the Central Board of Direct Taxes vide Circular No. 21/2015 dated 10th December,
2015 file no.279 of Misc. 142/2007 – ITJ (PT) has issued the direction in
supersession of the Instruction No.5/2014 dated 10/07/2014 in pursuance
with the power entrusted u/s. 268A of the Income Tax Act, that no appeal
should be filed before this Tribunal in case tax effect does not exceed Rs.10
2 ITA No.201/Mum/2011 Nandlal Tolani Charitable Trust
lac. The “tax effect” in this regard means the difference between the tax on
the total income assessed and the tax that what have been chargeable had
such total income been reduced by the amount of income in respect of issues
against which appeal is intended to be filed. This circular further states that
tax will not include any interest thereon the chargeability of interest itself is in
dispute. We further noted that under paragraph 10 which is reproduced as
under, it has been mentioned in the circular that this instruction will apply
even to the pending appeals.
“10. 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.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 the impugned case, we noted that the tax effect on the issue under
dispute does not exceed Rs.10 lac. In view of this fact as per the instruction,
the Revenue is not supposed to press the appeal. We, therefore, dismiss the
appeal filed by the Revenue in limine without going into the merits of the
case as in our opinion the circulars issued by CBDT are binding on the
departmental officers in view of the provisions of Section 268A(1) of the Act.
The said view has been taken by Hon’ble Supreme Court in the case of
Navneet Lal Zaveri Vs. AAC 56 ITR 198 (SC). We accordingly dismiss the
appeal filed by the Revenue.
3 ITA No.201/Mum/2011 Nandlal Tolani Charitable Trust
In the result, the appeal of the Revenue stands dismissed.
Order pronounced in the open court on 31st day of May, 2017.
Sd/- Sd/- (Pawan Singh) (P K Bansal) JUDICIAL MEMBER VICE-PRESIDENT Mumbai; Dated: 31st May, 2017 SA Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A),Mumbai 4. The CIT 5. DR, ‘B’ Bench, ITAT, Mumbai BY ORDER, #True Copy # Assistant Registrar Income Tax Appellate Tribunal, Mumbai