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Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI
Before: SHRI H.S. SIDHU & SHRI J.S. REDDY
This appeal by the Department is directed against the Order dated 10.1.2014 of Ld. CIT(A), Faridabad pertaining to assessment year 2009-10 on the following grounds:-
1. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals) was right in deleting the addition of Rs.8,OO,OOO/- which was made by the AO being liability are no longer payable by the assessee." 2 "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was right in restricting the disallowance to Rs.24,066/- as against disallowance of Rs.2,56,720/- made the AO by invoking provisions of section 14A of the Income Tax Act read with 1 Rule 8D(2)(ii) and 8D(2)(iii) of Income Tax Rules, 1962." 3. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was right in restricting the disallowance to Rs.8,962/- as against disallowance of Rs.1,09,270/- made by the AO on account of depreciation claimed on rented portion of the building the income from which is assessable under the head 'Income from House Property' on which depreciation is not allowable."
Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was right in deleting the addition to Rs.1,25,590/- which was made by the AO when the assessee could not substantiate his claim that the foreign visit was for business purposes." 5. "That the appellant craves for the permission to add, delete or amend the grounds of appeal before or at the time of hearing of appeal."
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.” 3. 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. 4. 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 03/05/2016.