Income-tax Officer, Ward-2(1), Dehradun. Vs. Kamal Narayan Sharma 53, E.C. Road, Dehradun.
January, 19th 2016
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "B" NEW DELHI
BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER
MS. SUCHITRA KAMBLE : JUDICIAL MEMBER
ITA no. 3810/Del/2014
Asstt. Yr: 2004-05
Income-tax Officer, Vs. Kamal Narayan Sharma
Ward-2(1), Dehradun. 53, E.C. Road, Dehradun.
PAN: ATMPS 2827 A
( Appellant ) (Respondent)
Appellant by : Shri Amrit Lal Sr. DR
Respondent by : None
Date of hearing : 07/12/2015.
Date of order : 14/01/2016.
PER S.V. MEHROTRA, A.M:
This is revenue's appeal against the order dated 11.04.2014, passed by
the ld. CIT(A)-1, Dehradun, relating to A.Y. 2004-05.
2. Apparently, the tax effect involved in the present departmental appeal
is less than Rs. 10 lakhs. The recent CBDT Circular No. 21/2015 dated
10.12.2015 stipulates that no departmental appeal, involving tax effect
below Rs.10 lakhs, shall be filed before the ITAT. Para 10 of the Circular
specifies that such instruction would apply retrospectively and the pending
appeals below the specified tax limit of Rs.10 lakh may be withdrawn/not
3. Ld. DR could not controvert the aforementioned factual position. He,
however, referring to clarification given in paragraph 7 of the Circular,
submitted that withdrawal of the appeal by the Revenue on account of low
tax effect should not be considered as a precedent in the subsequent years of
the acceptance of issues involved in this appeal and, therefore, if in the
subsequent year similar issue arises before the ITAT, where the appeal is
above the tax limit, as prescribed in this Circular, the same should be
decided on merits.
4. Since the tax effect involved in the present departmental appeal is
below 10 lakhs, therefore, in view of recent CBDT Circular No. 21/2015
dated 10.12.2015, this appeal is not maintainable in terms of section
268A(1) of the Income-tax Act. However, we may clarify that if on receipt
of this order, the Assessing Officer finds that the tax effect involved is above
Rs.10 lacs or in any other manner, the circular is not applicable in view of
exceptions culled out in the circular, he will be at liberty to take such steps,
as deem fit, to recall the order. We also agree with the contention of the
learned CIT(DR) that this order would not be considered as an acceptance
by the Revenue on the issue involved in this appeal and will not be an
estoppel for the Revenue to take up the issue involved in this appeal before
the ITAT on merits if the tax effect in those years is more than 10 lakhs.
5. Keeping in view the aforementioned CBDT Circular and the
provisions of section 268A of the Income-tax Act, 1961, without going into
merits of the cases, we dismiss the instant appeal filed by the Revenue as tax
effect in this appeal is less than Rs.10.00 lacs.
Order pronouncement in open court on 14/01/2016.
(SUCHITRA KAMBLE) (S.V. MEHROTRA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Copy of order to:
5. DR, ITAT, New Delhi.