If the tax effect involved excluding interest is less than 3 lacs than Revenue cannot prefer appeal against assessee before ITAT

IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH ‘C’ NEW DELHI

BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT

AND

SHRI C.L. SETHI, JUDICIAL MEMBER

ITA NO.2891/DEL/2011

ASSTT. YEAR: 2007-2008

Dy.Commissioner of Income Tax,

Circle-22(1),

New Delhi.

(Appellant)

Vs

Shri Hridey Vikram,

F-38/2, Okhla Indl.Area,

Phase-II, New Delhi.

(Respondent)

Appellant by: Shri B.R.R. Kumar, Sr. DR

Respondent by: Shri S.M. Mathur

O R D E R

PER G.D. AGRAWAL, V.P.

This appeal of the revenue for assessment year 2007-08 has been preferred by the revenue against the order of CIT(A)-XXIII, New Delhi dated 31.3.2011. The only dispute in this appeal is against deletion of addition of Rs. 6,50,000/-, the tax effect on which is admittedly below Rs. 3

lakhs.

2. The learned counsel for the assessee, at the outset, contends that as per Central Board of Direct Taxes, Instruction No.3/2011 dated 09^th February, 2011, the revised limit for preferring revenue’s appeals has been increased from Rs.2 lacs to Rs. 3 lacs, although the tax effect in the present revenue’s appeal is below the prescribed limit of Rs. 3 lacs. In view thereof, the revenue’s appeal may be dismissed as the tax effect being below the prescribed limit.

3. The learned Departmental Representative agrees to the tax calculation and the upward revision of tax effect appealable under revenue’s appeal to Rs. 3 lacs.

4. We have heard both sides. The CBDT, vide above instruction has clearly laid down that the revenue should not prefer appeals against assessees before ITAT if the tax effect involved in the appeal, excluding interest, is less than Rs. 3 lacs. The tax payable in the present appeal being below Rs. 3 lacs, the revenue’s appeal is dismissed as not maintainable in view of CBDT Instruction.

5. In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 19th December, 2011.

                                                  Sd/-                                          Sd/-

                                         (C.L. SETHI)                      (G.D. AGRAWAL)

                                   JUDICIAL MEMBER            VICE PRESIDENT

DT. 19th DECEMBER, 2011

‘GS’

Copy forwarded to:

1. DCIT, Cir. 22(1), Meerut.

2. Shri Hridey Vikram, New Delhi.

3. CIT(A)-XXIII, New Delhi.

4. CIT

5. DR

                                                                                                                                       By Order

Dy. Registrar