DCIT, NEW DELHI vs. M/S. TOSHIBA INDIA PVT. LTD., NEW DELHI

Date of Hearing 06.04.2016 Date of Pronouncement 13.05.2016 ORDER PER DIVA SINGH, JM The present appeal has been filed by the Revenue assailing the correctness of the order dated 21.01.2014 passed by DCIT, New Delhi pertaining to Assessment Year 2009-10 on the following grounds:-

1. “On the facts and in the circumstances of the case and in law, Ld.DRP, Panel-II, New Delhi erred in deleting the addition of Rs.19,74,842/- (18,96,76,184/--18,77,01,342) made by the AO u/s 92CA of the Act.

2. The appellant craves for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of appeal.”

2. Considering the amount at stake for the Revenue, both the parties were required to address Circular No.21/2015 dated 10th December, 2015 of CBDT. On consideration of the facts on record and the aforesaid Circular of the CBDT, the Ld. Sr. DR fairly conceded that the departmental appeal has been filed wherein the tax effect involved is much less than Rs.10 lakh.

3. We have heard the submissions of the parties on this issue and perused the material on record. We find that the CBDT vide the aforesaid Circular I.T.A .No.-870/Del/2014 dated 10.12.2015 has revised the monetary limit to Rs.10 lakh for filing the appeal by the department before Income Tax Appellate Tribunal. Vide para 10 of the aforesaid Circular Para 3 has been made applicable retrospectively. Considering the settled legal precedent that the Board’s instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities, we dismiss the departmental appeal considering the material available on record.