ACIT, FARIDABAD vs. M/S A.C. GOODS TRANSPORT PVT. LTD., FARIDABAD

The present appeal has been filed by the Revenue assailing the correctness of the order dated 09.12.2010 of CIT(A), Faridabad pertaining to 2004-05 assessment year challenging the deletion made by the CIT(A) in appeal. Mr. S.A. Sharma, Adv. appearing on behalf of the assessee submitted that the Revenue’s appeal having been filed in violation of the latest CBDT Circular No.21/2015 dated 10th December, 2015 deserves to be dismissed. Vide Ground No.1, it was submitted the Revenue is assailing deletion of G.P. addition of Rs. 6,57,641/-; in Ground No.2, an addition of Rs.1 lacs is assailed; and in Ground No.3 the relief of I.T.A .No.-1235/Del/2011 & C.O.-107/Del/2011 Rs.1,82,594/- made by the CIT(A) is assailed by the Revenue. The total tax effect it was submitted is less than Rs.10 lacs.

We have heard the submissions and perused the material available on record. We find that the CBDT vide the aforesaid Circular 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. Para 3 of the aforesaid Circular has been made applicable vide para 10 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.

In the result, the appeal of the Revenue is dismissed and C.O. filed by the assessee becomes infructuous.