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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI
Before: SH. H.S. SIDHU & SH. O.P. KANT
ORDER PER O.P. KANT, A.M.: This appeal by the Revenue is directed against the order of learned Commissioner of Income Tax(Appeals) dated 30.01.2013 in relation to assessment year 2009-10, raising the following grounds of appeal:
1. The learned Commissioner of Income Tax(Appeals) has erred in law on facts in deleting disallowance of Rs. 29,59,228/- being expenses claimed as payment for sale commission.
2. The appellant craves, leave or reserving the right to amend modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.
2. We have heard both the parties and perused the relevant material on record. It is noticed that 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 Tribunal. The ld. Sr. Departmental Representative, although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in the 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 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 afore-noted Circular, we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit i.e. Rs. 10,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeal without going into merits of the case. However, the Department is at liberty to file the Miscellaneous Application, if the tax effect is more than the prescribed limited of Rs. 10 lacs or otherwise.
In the result, the appeal of the Revenue stands dismissed. The decision is pronounced in the open court on 30th June, 2016.