I.T.O WD - 1(1),HOOGHLY., HOOGHLY vs. BIJOY GUHA MALLICK, HOOGHLY

This appeal by revenue is arising out of order of CIT(A)-XXXVI, Kolkata vide Appeal No. 787/CIT(A)-XXXVI/Kol/ACIT,Cir-1/HG/09-10/1769 dated 13.12.2012. Assessment was framed by ACIT, Circle-1, Hooghly u/s. 144 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2007-08 vide his order dated 29.12.2009.

At the outset, it is seen that the quantum involved in this case is Rs.19,44,302/- and tax effect on the disputed addition before us is Rs.6,61,062/-, which is less than Rs. 10 lacs.

After perusing the materials available on record, we find that the additions disputed before us is below the tax effect limit prescribed by CBDT vide Circular No. 21 / 2015 dated 10.12.2015 for preferring appeals before tribunal by the revenue. On perusal of the Circular No. 21 / 2015 dated 10.12.2015 and the materials available on record, Ld. DR could not point out whether this case falls under any of the exception as provided in the circular despite specific opportunity was given, does not fall under any of the exceptions contemplated in the said Circular, as this is covered. We also find that the Circular makes it very clear that the revised monetary limits shall apply retrospectively to pending appeals also. We find that the Circular is binding on the tax authorities. This position has been confirmed by the Hon’ble Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd reported in 267 ITR 272 (SC). Hence, we hold that the appeal of the revenue deserves to be dismissed in terms of low tax effect vide Circular No.21 / 2015 dated 10.12.2015. Accordingly, this being a low tax effect