ITO, WARD- 3(4), NOIDA vs. SUMAN SHARMA , GAUTAM BUDH NAGAR

ORDER PER BENCH:

1. 1. These appeals by the Revenue arise out of the orders passed by the CIT(A) in relation to the captioned assessment years.

2. At the outset of the hearing itself, the ld. DR brought to our attention that CBDT vide Circular No.03/2018 dated 11TH July 2018 has decided that the revenue would not prefer an appeal before the Tribunal if the tax effect is less than Rs.20 lakhs. He further referred to another Circular dated 20.08.2018 issued by CBDT and submitted that the cases which are falling into exception cannot be dismissed, even if tax effect is less than Rs. 20 lakhs. He, therefore, submitted that he needs to verify whether any such facts are existing in the 2 above listed cases. Therefore, he pleaded that the appeals of the revenue be decided as per the instruction of the CBDT.

Sl.No. Appeals in Income-tax Monetary Limit(in matters Rs.) 1. Before Appellate Tribunal 20,00,000 2. Before High Court 50,00,000 3. Before Supreme Court 1,00,00,000

It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.”

5. We have consciously reviewed each of the above appeals, however, could not find any such issues involved in these appeals which are covered by exception to the tax effect circular as mentioned in amended Para No. 10 of that Circular. Instantaneously, ld DR also could not show any such instance in these appeals.

6. We find that the tax effect involves in the appeal of the Revenue is below Rs.20 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of Rs.20 lakhs. 3

AR, ITAT, NEW DELHI.