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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, JM & SHRI RAJESH KUMAR, AM
आदेश / O R D E R PER RAJESH KUMAR, A. M: This appeal by the revenue is directed against the order dated 14.03.2012 of Commissioner of Income Tax (Appeals)-29, Mumbai (hereinafter called as the CIT(A) ) for assessment year 2001-02. The revenue has raised following grounds of appeal in is as under.
1. “Whether on the fact and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing AO to treat the expenditure as revenue
expenditure against the capital expenditure.” 2. “On the facts and in the circumstances of the case and in law, the Ld.
CIT(A) has erred in deleting the addition of Rs.16,50,000/- made by AO without considering the fact that expenditure claimed was of capital in nature.”
The revenue has raised following ground of appeal in is as under. 1. “On the facts and in the circumstances of the case and in law, the Ld.
CIT(A) has erred in deleting the addition of Rs.17,30,000/- made by AO without considering the fact that expenditure claimed was of capital in nature.”
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 and Government of India, the appeal is 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 circular no 21/2015 dated 10th December, 2015 that 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 effective retrospectively. The relevant extract the said CBDT Circular (Supra) is extracted 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed.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, wherein the tax effect is below the above stated tax limit of Rs.10 lakhs, is dismissed as not maintainable.
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 8th January, 2016