Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SMT DIVA SINGH & SH.O.P.KANT
Date of Hearing 08.03.2016 Date of Pronouncement 22.03.2016 ORDER
PER DIVA SINGH, JM
The present appeal has been filed by the revenue assailing the correctness of the order dated 31.03.2011 of CIT(A), Muzaffarnagar pertaining to 2005 –06 assessment year on the following grounds:
– 1. “On the facts and in the circumstances of the case, the CIT(A)has erred in deleting the disallowance of Rs.78,851/- made by the Assessing Officer under section 36(1)(iii) on account of payment of interest on loan as the assessee is not engaged in any business activity.
2. On the facts and in the circumstances of the case, the CIT(A) has erred in law in deleting the disallowance of Rs.11,168/- made by the Assessing Officer on account of car running expenses & repairs as the assessee is not engaged in any business activity.
3. On the facts and in the circumstances of the case, the CIT(A) has erred in law by ignoring the provisions of section 50C of the I.T.Act, 1961 and accepting the valuation report as submitted by the assessee and consequently allowed the relief of Rs.13,16,718/- on account of long term capital gain.
4. On the facts and in the circumstances of the case, the CIT(A) has erred in law in deleting the long term capital gain of Rs.4,33,310/-
I.T.A .No.-3278/Del/2011 by considering the land as agricultural land, misinterpreting the words mentioned in Khatuani of the land under consideration. 5. That order of the CIT(A) be set aside and that of A.O. be restored.”
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. Considering the same in the facts on record, 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. 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. 4. In the result, the appeal of the Revenue is dismissed. The order is pronounced in the open court on 22nd March, 2016.