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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Revenue by .. Shri. B.S. Bist, Sr. DR .. None Assessee by .. Date of hearing 06-12-2016 Date of pronouncement .. 06-12-2016 O R D E R PER MAHAVIR SINGH, JM:
This appeal by the Revenue and Cross Objection by assessee are arising out of the order of CIT (A)-40, Mumbai in appeal No. CIT (A)- 40/ACIT-CC-29/62/13-14 dated 25-02-2014. The Assessment was framed by the ACIT Central Circle-29, Mumbai for the AY 2010-11 vide order dated 28- 03-2013 under section 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).
At the outset it is noticed that the CIT(A) had deleting the addition and allowed relief to the extent of Rs.12,37,816/-. On this amount of relief tax will be amounting to Rs.3,96,101/-.
CO No. 142/Mum/2015 3. At the outset, it is seen that the relief allowed by CIT(A) on account of deletion is to the extent of Rs.12,37,816/- and tax on this amount of relief will be amounting to Rs.3,96,101/-, which is less than the prescribed limit of Rs. 10,00,000/- for filing of appeal by Revenue vide CBDT circular.
During the course of hearing before us, pointed out that in this case, the net tax demand is Rs.3,96,101/- and thus, the tax effect in this appeal is below Rs.10.00 lacs. The learned Counsel for the assessee further submitted that in view of the CBDT Circular No.21/2015, dated 10.12.2015 brought out by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, the appeal was not maintainable and be dismissed. The learned Sr. DR also agreed to the facts stated by the learned Counsel for the assessee but could not point out whether this case falls under any of the exception as provided in the Circular.
We have heard the rival submissions and perused the material on record. We find from the records before us that the tax involved in the disputed issue is below Rs.10.00 lacs and therefore, in view of the circular No. 21/2015 dated 10th December, 2015 no appeal should be filed by the Revenue before the Tribunal which has tax effect of Rs. 10.00 lacs or less and this circular is also applicable retrospectively to all pending appeals. The relevant extract the said CBDT Circular (Supra) is as under: - “This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed.” 6. Considering the above, the appeal filed by the Revenue, is therefore, dismissed. 7. We find that the Cross Objection by the assessee is supportive of the order of CIT(A) and once order of CIT(A) is upheld, the CO has become academic and consequentially dismissed.
CO No. 142/Mum/2015 8. In the result, the appeal of Revenue and the Cross Objection of the assessee, both are dismissed. Order pronounced in the open court on 06-12-2016.