DCIT CEN CIR 5(3), MUMBAI vs. SUMER CORPORATION, MUMBAI

Now as per the latest CBDT Circular No. 21 of 2015 dated 10th December, 2015, issued by the CBDT in pursuance of provisions contained u/s 268A(1) had prescribed the monetary limit of filing of the appeal by the Department before the Income- tax Appellate Tribunal at Rs. 10 lakhs, that is, the tax affect for 8 Sumer Corporation 26 others filing of appeal should exceed the said monetary limit. This has been laid down in para 3 of the circular which reads as under:-

“3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:- S No Appeals in Income-tax matters Monetary Limit(in Rs) 1 Before Appellate Tribunal 10,00,000/- 2 Before High Court 20,00,000/- 3 Before Supreme Court 25,00,000/- It has further been clarified by the CBDT that the said instruction will apply retrospectively to the pending appeals also and such appeals should be either withdrawn or not pressed by the revenue. The relevant para 10 reads as under:-

The Ld. DR before us has admitted that, in all these appeals, the tax effect on the disputed issue is prima facie is less than Rs. 10 lakhs. However, he submitted that the appeal of the revenue can be dismissed as not pressed in view of the Circular, subject to liberty given to the Department that, in case if it is found by the AO that after the calculation, the tax effect exceeds Rs. 10 lakhs, then the Department is at liberty to file Miscellaneous Application for recalling or restoring of such order.

After considering the aforementioned fact, we find that in all the aforesaid cases, the tax affect on the disputed issue is less than Rs. 10 lakhs and accordingly, in view of the CBDT Circular issued under the terms of section 268A(1), such an appeal is not maintainable and accordingly, all the appeals impugned herein are dismissed as not pressed in terms of the wording of the circulars.