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Income Tax Appellate Tribunal, DELHI BENCH “SMC-2” NEW DELHI
Before: SHRI I.C. SUDHIR: HON’BLE
The Revenue has questioned First Appellate Order on the ground that the Learned CIT(Appeals) has erred in holding that sales of scrap was profit and gains derived from manufacturing process.
At the outset of hearing, the Learned AR raised a preliminary
objection against the maintainability of the present appeal having tax effect below Rs.4 lacs as per the CBDT Instruction No. 5 dated 10.7.2014, the Revenue is not supposed to prefer appeal having tax effect below Rs. 4 lacs against the First Appellate Order before the ITAT. This instruction regarding
the pecuniary limit for preferring the appeal before the ITAT by the Revenue has now statutory force under sec. 268A of the Income-tax Act, 1961. Thus,
present appeal has been preferred by the Revenue in violation of the said instruction as the said instruction is also applicable in the pending appeals as per the decisions of Hon’ble juri ictional Delhi High Court in the case of CIT vs. M/s. P.S. Jain & Co. in ITA No. 179/1991 dated 02.08.2010 and in the case of CIT vs. Delhi Race Club Ltd. – order dated 03.03.2011.The present appeal is thus not maintainable and it is dismissed as such.
In result, the appeal is allowed. Order pronounced in the open court on 11.12.2015. Dated: 11 /12/2015 Mohan Lal