ITO WD 22(3)4, NAVI MUMBAI vs. VAIBHAV D WARKAR, NAVI MUMBAI

“On the facts and circumstances of the case, and law the Ld. CIT(A) erred in deleing the addition made by the AO of Rs.16,95,361/- holding that the addition made is unwarranted.

At the outset the ld. AR of the assessee pointed out that the tax effect in this appeal is below Rs.10.00 lakhs and further submitted that in view of the CBDT Circular No.21/2015, dated 10.12.2015 brought out by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance , Government of India, the appeal was not maintainable and be dismissed. The ld. DR also agreed to the submission of the ld. AR.

We have heard the rival submissions and perused the material on record. We find from the records before us that the tax involved in the disputed issue is below Rs.10 Lacs and therefore, in view of the circular no 21/2015 dated 10th December, 2015 no appeals should be filed by the Revenue before the Tribunal which has tax effect of Rs. 10.00 lacs or less and this circular is also applicable retrospectively to all pending appeals. The relevant extract the said CBDT Circular (Supra) is as under:- “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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.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.”

Considering the above, the appeal filed by the Revenue, is therefore dismissed.