What did the Tribunal hold?

The Tribunal noted that the tax effect was below the monetary limit specified by the CBDT circular. The Revenue's counsel stated they would not press the appeal.

The Revenue filed an appeal before the ITAT against the order of the CIT(Appeals). The tax effect in the departmental appeal was less than the prescribed limit of Rs. 10 lacs as per CBDT Circular No. 21/2015.

What were the issues?

Maintainability of the departmental appeal before the ITAT due to low tax effect as per CBDT circular.

DCIT vs Sh. Lakhwinder Singh Panag, Mohali | ITAT Chandigarh 2018

Income Tax Appellate Tribunal, DIVISION BENCH ‘A’, CHANDIGARH

Before: SHRI SANJAY GARG & MS. ANNAPURNA GUPTAShri Lakhwinder Singh Panag,

For Appellant: Smt. Chander Kanta, Addl. CIT

For Respondent: Smt. Shruti

Hearing: 26.04.2018Pronounced: 26.04.2018

PER ANNAPURNA GUPTA, A.M. :

This appeal has been filed by the Revenue against

the order of CIT(Appeals)-2, Chandigarh dated 16.10.2017

relating to assessment year 2013-14.

It is stated that in the present appeal the tax

effect is less than the prescribed limit provided by the

recent CBDT Circular.

According to Circular No.21/2015 dated

10.12.2015, the CBDT in supercession of earlier

instructions has directed that department’s appeals before

ITAT shall not be filed in cases where the tax effect does not

exceed the monetary limit of Rs.10 lacs. The tax will not

include any interest thereon. It is further clarified that if

in the case of an assessee, disputed issues arise in more

than one assessment year, appeal can be filed in respect of

such assessment year or years in which the tax effect in

respect of disputed issues exceeds the monetary limit so

specified. This instruction will apply retrospectively to

pending appeals and appeals to be filed henceforth before

the Tribunal. The pending appeals below the specified tax

limit may be withdrawn/not pressed.

Admittedly, in the departmental appeal, the tax

effect is less than Rs.10 lacs, therefore, departmental

appeal is not maintainable. The learned CIT (Appeals)

decided the issue in departmental appeal on facts and the

case of the revenue would not fall in the exceptions

provided in the above circular.

In view of the above, learned D.R. stated that

since departmental appeal is filed against the CBDT

instructions, therefore, he would not be pressing

departmental appeal. Therefore, the above departmental

appeal is dismissed being not pressed.

In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court.

Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 26.04.2018 *Poonam* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR Assistant Registrar, ITAT, Chandigarh

DCIT, C-6(1), MOHALI vs. SH. LAKHWINDER SINGH PANAG, MOHALI

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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