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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI D.S.SUNDER SINGH
आदेश / O R D E R
PER D.S.SUNDER SINGH, ACCOUNTANT MEMBER:
This is an appeal filed by the Revenue against an Order dated 17.06.2015 of Commissioner of Income Tax (Appeals)-9, Chennai, in for the AY 2011-12 on the following grounds: 1. The order of the learned CIT(A) is contrary to law and facts of the case. 2.1.The learned CIT(A) erred in deleting the disallowance of claim on commission payment for the Asst. Year 2011-12 of Rs.15,00,119/-.
ITA No.1938/Mds/2015 :-2-:
2.2. The learned CIT(A) ought to have appreciated the fact that the onus is upon the assessee to prove the necessity and genuineness of the transaction towards commission payable. 2.3. The learned CIT(A) ought to have appreciated the fact that as per second limb of Section 37 of the IT. Act, of incurring the expenditure for the purpose of business, have not been satisfactorily established by the assessee. 2.4. Having regard to the Hon’ble Punjab & Haryana High Court’s decision in the case of Raj kumar Wadhwa vs.CIT (2014) 42 taxmann.com 177, the learned CIT(A) ought to have upheld the action of the AO in making disallowance of commission payment u/s.37(1).
For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored.
2.0 Ld.A.R. brought to the notice of the bench that the appeal is not maintainable since the tax effect is below Rs.10.00 lakhs. The Assessing Officer passed order u/s.143(3) on 25.03.2014 determining the total income at Rs.63,50,783/-, raising the demand of Rs.6,75,160/-.
On hearing from the Ld. Departmental Representative, we find that the tax effect in this appeal is less than Rs.10 lakhs. The CBDT in Circular No.21/2015 dated 10.12.2015 increased the monetary limit for filing appeal before this Tribunal from Rs.4 lakhs to Rs.10 lakhs. The CBDT further clarified that the Instruction dated 10.12.2015 will apply retrospectively to all the pending appeals before this Tribunal. The CBDT has also instructed its officers to withdraw the appeals pending before this Tribunal. In view of the above, this Tribunal is of the considered opinion that the Circular issued by the CBDT on 10.12.2015 is binding on the Department. Therefore, the appeal filed by the Revenue is not maintainable. Accordingly, the appeal of the Revenue is dismissed. :-3-: 3.0 In the result, the appeal of the Revenue is dismissed.
Order pronounced in the Open Court on 23rd February, 2017, at Chennai.