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2016 (9) TMI 1642 - AT - Income TaxMaintainability of appeal before the Tribunal - low tax effect - HELD THAT - As noticed that the CBDT has issued Circular No. 21 of 2015 dated 10.12.2015 with retrospective effect revising the monetary limit to Rs.10, 00, 000/- for not filing appeals before the Tribunal. Learned Sr. DR could not controvert the fact that tax effect involved in the appeal is less than Rs.10, 00, 000/-. From para 10 of the above Circular it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT wherein tax effect is less than Rs.10, 00, 000/-. Going by the prescription of the afore-noted Circular we are of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit i.e. Rs. 10, 00, 000/- for not filing the appeal - we dismiss the instant appeal without going into merits of the case - Department is at liberty to file the Miscellaneous Application if the tax effect is found to be more than the prescribed limited of Rs. 10 lacs or otherwise. Appeal of the Revenue stands dismissed.
Issues: Appeal against order of Commissioner of Income Tax (Appeals) - Monetary limit for filing appeals before Tribunal - Applicability of Circular No. 21 of 2015 with retrospective effect.
Analysis: 1. The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2008-09. The Central Board of Direct Taxes (CBDT) issued Circular No. 21 of 2015, revising the monetary limit to Rs. 10,00,000/- for not filing appeals before the Tribunal. The Tax Effect involved in the appeal was found to be less than the prescribed limit. 2. The Circular stated that it is applicable to pending appeals with retrospective effect and directed the Department to withdraw or not press appeals where the tax effect is less than Rs. 10,00,000/-. The Tribunal observed that as per the Circular, the Revenue should not have filed the appeal or should have withdrawn it, considering the tax effect was below the prescribed limit. The Tribunal, therefore, dismissed the appeal without delving into the merits of the case. The Department was given the option to file a Miscellaneous Application if the tax effect exceeded the prescribed limit. 3. The Tribunal's decision to dismiss the appeal of the Revenue was based on the clear direction provided in Circular No. 21 of 2015, which mandated adherence to the revised monetary limit for filing appeals before the ITAT. By not meeting the prescribed limit, the Revenue's appeal was deemed ineligible for consideration on its merits, highlighting the significance of compliance with statutory directives in matters of appeal filings. 4. The judgment emphasized the importance of adhering to the guidelines set forth by the CBDT through Circulars, underscoring the need for strict compliance with monetary limits for filing appeals before the Tribunal. The dismissal of the Revenue's appeal underscored the Tribunal's commitment to upholding procedural requirements and ensuring that appeals are filed in accordance with the prescribed criteria, thereby promoting efficiency and adherence to established norms within the realm of income tax assessments and appeals.
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