ITO, WD-40(1), KOLKATA, KOLKATA vs. SHANKAR VAJPAYEE, KOLKATA

The above appeal was dismissed by the Tribunal vide its order dated 28th December, 2015 as the tax effect was below Rs.10 lakhs. Latter, this order was re-called by the Tribunal in M.A. No. 58/KOL/2016 vide order dated November 25, 2016, on the ground that the CBDT ./2015 Assessment year: 2007-2008 Page 2 of 3 Circular in question does not apply to the case, where the addition is made based on revenue audit objection, as in the case of the assessee.

When the case came up for hearing, the ld. counsel for the assessee submitted that the tax effect involved in this appeal of the Revenue is less than the revised monetary limit fixed by the CBDT vide Circular No. 21/2015 dated 10th December, 2015 at Rs.10,00,000/- for filing the appeal by the Revenue before the Tribunal and that this position is clearly evident from the grounds raised by the Revenue in this appeal. It was submitted that the CBDT has clarified that the Circular applies to issues, which were raised by way of audit objection and that no exception is made.

In Circular No. 21/2015 (supra) issued by the CBDT, the monetary limit for filing the appeal by the Revenue before the Tribunal has been increased to Rs.10,00,000/- and as clarified in the said Circular, the said monetary limit is applicable retrospectively even to the appeals pending before the Tribunal. The CBDT has also instructed that such pending appeals below this specified tax limit of Rs.10,00,000/- may be withdrawn/ not pressed.

The ld. D.R. did not dispute these submissions of the ld. counsel for the assessee.

6. Keeping in view the instruction given by the CBDT vide Circular No. 21/2015 dated 10.12.2015, which is squarely applicable in the present case, the appeal filed by the Revenue in this case is dismissed.

In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on February 8th , 2017.