DCIT, CC-XXX, KOLKATA, KOLKATA vs. M/S SHANTINATH TIE UP PVT. LTD., KOLKATA

At the outset, it is seen that the tax effect on the disputed addition is less than Rs. 10 lacs. After perusing the materials available on record, we find that the additions disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 21 / 2015 dated 10.12.2015 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 21 / 2015 dated 10.12.2015 and the materials available on record, Ld. DR could not point out whether this case falls under any of the exception as provided in the circular despite specific opportunity was given, does not fall under any of the exceptions contemplated in the said Circular, as this is covered. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. This position has been confirmed by the Hon’ble Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC). Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No.21 / 2015 dated 10.12.2015. Accordingly, this being a low tax effect case, we dismiss this appeal of revenue in limine, as unadmitted, without going into the merits of the case. In case the revenue later finds that the tax effect is more than Rs. 10 lakhs then it is at liberty to move appropriate application to recall this order. With this Caveat, we are inclined to dismiss this appeal on the ground that it is below the tax effect of less than Rs.10 lakh.

In the result, the appeal of the revenue is dismissed. Order is Pronounced in the open Court at the time of hearing. Sd/- Sd/- (Dr. A. L. Saini) (Aby. T. Varkey) (डॉ. ए. एल. सैनी) (ऐ. ट�. वाक�) Accountant Member Judicial Member Dated : 29th March, 2017 Jd.(Sr.P.S.) Copy of the order forwarded to: Appellant – DCIT, C.C-XXX, Kolkata.

Respondent – M/s. Shantinath Tie Up Pvt. Ltd., 27, Mullick Street, 2 Kolkata-7. The CIT(A), Kolkata 3.