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Income Tax Appellate Tribunal, MUMBAI BENCHES “B”, MUMBAI
Before: SHRI R.C. SHARMA(AM) & SHRI SANDEEP GOSAIN (JM)
The present appeal has been filed by the Revenue against the order of Ld. Commissioner of Income Tax (Appeals)-32, Mumbai, dated 31/12/2013 for the assessment year 2008-09.
None appeared on behalf of the Assessee however, Shri Randhir Gupta, Departmental Representative (DR) is present in the court on behalf of the Revenue.
The main issue raised in this appeal is with regard to alleged failure of the assessee in deduction of tax at source while making the payment by the assessee and its consequent disallowance u/s 40(a)(ia).
3.1. It is noted by us that tax effect in this case is apparently less than Rs. 10,00,000/-.
3.2. We have gone through the aforesaid circular of the Board. It has been provided in the aforesaid circular that no appeal shall be filed by the Revenue if the tax effect involved in the appeal does not exceed a sum of Rs. 10 Lacs. It has further been provided that instructions contained therein shall apply retrospectively to pending appeals also. Relevant part of the circular is reproduced below:
“10. This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunal. Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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.”
3.3. It is confirmed by the Ld. DR that tax effect in this case is less than the amount of Rs.10,00,000/-. As per law, circular of CBDT has binding effect on the income tax authorities.
3.4. In view of the above, we find that the appeal of the Revenue is not maintainable. Therefore, we dismiss the same.
3.5. However, with a view to follow principles of natural justice, we give liberty to the Revenue to file Miscellaneous Application u/s 254 in case tax effect is found to be more than Rs. 10,00,000/-. Further, our order shall have no bearing on the merits of the case.