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Income Tax Appellate Tribunal, DELHI BENCH: ‘A’ NEW DELHI
Before: SMT DIVA SINGH & SH.PRASHANT MAHARISHI
Date of Hearing 22.03.2016 Date of Pronouncement 01.04.2016 ORDER
PER DIVA SINGH, JM
The present appeal has been filed by the Revenue assailing the correctness of the order dated 15.05.2013 of CIT(A), Ghaziabad pertaining to 2006-07 assessment year on the following grounds:
– 1. “That the Ld.CIT(A) has erred in law and on facts and circumstances of the case, in allowing the expenses of Rs.22,53,817/-.
2. That the Ld.CIT(A has erred in law and on facts and circumstances of the case, in not appreciating the fact that the assessee failed to deduct TDS on the payment of Rs.22,53,817/- under the heads freight and cartage as per provision of section 194C of the I.T. Act, 1961 and expenses u/s 40(a)(ia) were not allowable.
3. Hence order of the Ld.CIT(A) deserves to be reversed/set aside and the order of the AO may be restored.”
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 ,
I.T.A .No.-4481/Del/2013 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.
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 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.
In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 01st April, 2016.