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Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: SHRI H.S. SIDHU & SHRI L.P. SAHU
This appeal by the Department is directed against the Order dated 24.7.2015 of Ld. CIT(A)-Meerut pertaining to assessment year 2010-11 on the following grounds:- “
1. Ld. CIT(A) has erred in law and on facts in disposing of the appeal with the direction to AO to verify the claim of the assessee which amounts to setting aside of assessment order, an adjudication, the right of which has already been taken away from CIT(A) since 2001.
2. On the facts and circumstances of the case, Ld. CIT(A) has erred in admitting the additional evidence without giving the opportunity to the AO for examination of the same as there was no circumstances for admitting the additional evidence as per rule 46A(2) and 46A(3).
3. The order of the Ld. CIT(A) passed on the application of assessee u/s. 154 may be set aside.
At the time of hearing Ld. Counsel of the Assessee has stated that the tax effect involved in this Appeal is below the prescribed limit of Rs. 10,00,000/-, hence the same is not maintainable and may be dismissed accordingly.
2.1 Ld. DR did not contovert the submissions made by the Ld. Counsel of the Assessee, but he relied upon the order of the Ld. CIT(A), Meerut.
After hearing both the parties and perusing the records, 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed.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.”
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.
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. 6. In the result, Appeal filed by the Revenue Stands dismissed.
Order pronounced in the Open Court on 05/02/2016.