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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 25.2.2009 of Ld. CIT(A)-II, New Delhi pertaining to assessment year 2002-03 on the following grounds:- 1(a) In the facts and circumstances of the case, Ld. CIT(A) has erred in deleting the addition of Rs. 3,00,000/- made on account of unexplained bank entries when the assessee has not produced the bank accounts before the AO during assessment proceedings for verification and examination. 1(b) That Ld. CIT(A) has erred in admitting fresh evidence in form of Bank account without giving opportunity of being heard to AO on this matter in terms of Rule 46A. 2(a) Ld. CIT(A) has erred on the facts and in the circumstances of the case in deleting the addition of Rs. 25,59,394/- made on account of bogus assets/ closing stock on the basis of fresh evidence filed during the appellate proceeding before him.
2(b) That Ld. CIT(A) has not afforded an opportunity of being heard to the AO in terms of Rule 46A while accepting fresh evidence.
We have heard both the parties and perused the material on record. We have also perused the Sheet of Calculation of Tax Effect filed by the Ld. Counsel of the Assessee, which shows the tax effect in this case is Rs. 7,83,174/-. 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: Monetary Limit S No Appeals in Income-tax matters (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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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, 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. 5. In the result, Appeal filed by the Revenue Stands dismissed. Order pronounced in the Open Court on 01/06/2016.