DCIT, NEW DELHI vs. M/S. TELEXCELL INFORMATION SYSTEMS LTD., NEW DELHI

The present appeal has been filed by the Revenue assailing the correctness of the order dated 02.08.2010 of CIT(A)-XIX, New Delhi pertaining to 2005-06 assessment year. The Ld. Sr.DR on considering the impugned order submitted that most of the additions have been confirmed and the appeal is challenging the relief granted to the extent of Rs.17,61,567/- thus the tax effect is well below Rs.10 lakhs. No one was present on behalf of the assessee. Considering the record, we find that the appeal has been preferred by the Revenue in violation of Circular No.21/2015 dated 10th December, 2015 of CBDT. By the aforesaid circular the pecuniary limit for filing the appeal before the ITAT has been prescribed beyond Rs. 10 lakhs. Para 3 of the aforesaid Circular has been made applicable vide para 10 retrospectively. Considering the settled legal precedent that the Board’s instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities. We hold that the present appeal is not maintainable.

In view of the above discussion, the present appeal preferred by the Revenue in violation of CBDT Circular No.21/2015 (cited supra) is not maintainable and hence, is dismissed as such making it clear that since the present appeal has not been disposed of on merits, but due to the above reason, this order will not have any judicial precedence. Accordingly, the appeal of the Revenue is dismissed as non-maintainable.

In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 29th July 2016.