ITO WARD - 1(1), KALYAN, KALYAN vs. ELCON PIPES & FITTINGS PVT. LTD., BHIWANDI

ITO Vs.M/s Elcon Pipe & Fittings Pvt. Ltd. Assessment Year 2010-2011 आदेश / O R D E R Per MANOJ KUMAR AGGARWAL(Accountant Member):

1. 1. The captioned appeal of the revenue for Assessment Year [AY] 2010-11 primarily challenges stand of Commissioner Income Tax(Appeals)-2, [CIT(A)], Thane dated 30/06/2016 qua confirmation of addition against certain bogus purchases.

2. Briefly stated, the assessee was engaged in the business of trading in pipes and plates and saddled with addition of Rs.19,61,897/- in Assessment order passed u/s 143(3) ‘read with section’ 147 of the Income Tax Act vide Assessing Officer [AO] order dated 27/03/2015. The same was assailed before Ld. First Appellate Authority, who after considering the submissions of the assessee, confirmed addition to the extent of Rs.4,07,538/- and deleted the balance amount of Rs.15,54,359/-. Aggrieved, the revenue is in appeal before us qua relief granted by the CIT(A).

3. At the outset, the Ld. Counsel for Assessee [AR] drew our attention to the fact that the tax effect of the amount in dispute i.e. Rs.15,54,359/- is below Rs. 10.00 Lacs and hence the same is covered by latest CBDT Circular number 21 of 2015 dated 10/12/2015. As per the circular, new guidelines of monetary limit for filing of appeals by the Department has been issued, whereby the tax effect for filing of appeal before the ITAT has been prescribed at minimum of Rs. 10 lakhs. In the said Circular, it has been specifically clarified that the said instruction will apply retrospectively to all the pending appeals. The Ld. DR fairly conceded the position and could not point out any exceptions as given in the circular. Accordingly, the appeal filed by the revenue is not maintainable and are ITO Vs.M/s Elcon Pipe & Fittings Pvt. Ltd. Assessment Year 2010-2011 dismissed in limine. The revenue is free to re-agitate the same if it is found that the case of the assessee is not covered by the benefit of the said circular. 3. In Nutshell, the appeal of the revenue stands dismissed. Order pronounced in the open court on 9th February, 2017.