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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 25.6.2012 of Ld.CIT(A), Noida pertaining to assessment year 2007-08 on the following grounds:- 1.1 The Ld. CIT (A) has erred on facts and in law in' cancelling the order dated 24.03.2009 passed by the ACIT (TDS,), Noida and in directing that provisions contained in section 194C is applicable on the payment made by M/s UP. State Road Transport Corporation, Noida for hiring of buses, ignoring the fact of the case that the deductor company is liable to deduct' the 'tax uls 194-1 at the rate of 10% for hiring of buses in view of amendment made uls 194-1 w.e.f. 01.06.2007.
1.2 In directing so, Ld. CIT(A) has failed to appreciate the following :- i) Section 194-1 (introduced w.e.f. 01.06.2006) is applicable and the Board circular No. 558 (dated 28.03.1990) is, not applicable as it was issued prior to the introduction of section 194-
1. 1. ii) Sub clause (a) of section 194-1 clearly mention 'ten percent for the use of any machinery of plant or equipment' and section 43(3) provides inclusion of vehicle under plant. Thus the A.O. has applied the provisions of section 194-1 read with section 43(3) of the Income Tax Act.
2. 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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.