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Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI
Before: SHRI H.S. SIDHU & SHRI O.P. KANT
This appeal by the Department is directed against the Order dated 22.12.2006 of Ld. CIT(A)-XVI, New Delhi pertaining to assessment year 1998-99 on the following grounds:-
1. On the facts and circumstances of the case the ld. CIT(A) has erred in law and on facts in deleting the addition made in respect of management fees and licence fee on receipt basis
by the AO to the income of the assessee.
2. On the facts and circumstances of the case the CIT(A) has erred in law and on facts in directing the AO to recom,puted
the income of the assessee from management fees and licence fees on accrual basis of 1/8th of the total as claimed by the assessee.
3. On the facts and circumstances of the case the CIT(A) has failed to appreciate that the assessee has claimed Business
Promotion Expenditure on actual and not on accrual basis while showing receipt on sale of ETP, Licence Fee and Management Charges of 1/8th on accrual basis. 4. On the facts and circumstances of the case the CIT(A) has erred in law and on facts in directing the AO to allow expenses of Rs. 12,00,000/- paid towards professional fees to M/s Talent Marketing Pvt. Ltd. 5. On the facts and circumstances of the case the CIT(A) has erred in law and on facts in ignoring the fact that the assesee failed to prove the genuineness of the payments made to TML. 6. The appellant craves leave to add, alter or amend any of the grounds of appeal before or during the course of hearing of the appeal.”
We have heard both the parties and perused the material on record. From the above, we find that the tax effect in the Revenue’s Appeal is less than Rs.10,00,000/-, therefore, the Department’s Appeal is not maintainable, in view of the Circular No. 21/2015 dated 10th December, 2015 issued vide F.No. 279/Misc. 142/2007-ITJ (Pt.) by the CBDT. For the sake of convenience, the relevant para nos. 3 & 10 of the aforesaid CBDT’s Circular are reproduced as under:-
“3. Henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder: S No Appeals in Income-tax matters Monetary Limit
(in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- 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.
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.”
It is not in dispute that the Board’s instruction 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 instructions since the tax effect in the instant Appeal is less than the amount of Rs. 10 lacs, prescribed in the above said CBDT’s Instructions.
Keeping in view the CBDT Instruction No. 21/2015 dated 10th December, 4.
2015, we are of the view that the Revenue should have withdrawn/ not pressed the instant appeal before the Tribunal. We are also of the view that the said Instructions are applicable for the pending appeals and appeals to be filed henceforth in Tribunal. Accordingly, the Revenue’s Appeal is dismissed.
In the result, Appeal filed by the Revenue Stands dismissed.
Order pronounced in the Open Court on 01/06/2016.