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2015 (6) TMI 977 - AT - Income TaxLow tax effect - maintainability of appeal - Held that - As per the latest CBDT Instruction No. 5/2014 dated 10.7.2014 the Revenue is not supposed to prefer appeal having tax effect below 4 lacs against the First Appellate Order before the ITAT. This instruction regarding the pecuniary limit for preferring the appeal before the ITAT by the Revenue has now statutory force under sec. 268A of the Income-tax Act 1961. Thus present appeal has been preferred by the Revenue in violation of the said instruction as the said instruction is also applicable in the pending appeals as per the decisions of Hon ble jurisdictional Delhi High Court in the case of CIT vs. M/s. P.S. Jain & Co. 2010 (8) TMI 702 - Delhi High Court and in the case of CIT vs. Delhi Race Club Ltd. 2011 (3) TMI 1488 - High Court of Delhi .The present appeal is thus not maintainable and it is dismissed as such. - Decided against revenue
Issues:
1. Maintainability of appeal based on tax effect below a specified limit. Analysis: The judgment delivered by the Appellate Tribunal ITAT Delhi pertains to the maintainability of an appeal by the Revenue based on the tax effect being below the prescribed limit. The Learned AR highlighted that the tax effect of the grounds raised in the appeal was below Rs. 4 lakhs, rendering the appeal not maintainable as per CBDT Instruction No. 5/2014. The learned Senior DR did not contest this assertion but relied on the assessment order. In the case at hand, the Revenue contested the deletion of an addition of Rs. 4,79,930 by the Learned CIT(Appeals), with the tax effect falling below the Rs. 4 lakh threshold. The judgment emphasized that as per the CBDT Instruction No. 5/2014, the Revenue is prohibited from preferring an appeal with a tax effect below Rs. 4 lakhs against the First Appellate Order before the ITAT. This instruction, now having statutory force under sec. 268A of the Income-tax Act, 1961, was deemed violated by the Revenue in filing the present appeal. The judgment cited decisions of the Hon'ble jurisdictional Delhi High Court to support the applicability of the instruction to pending appeals. Consequently, the appeal was deemed not maintainable and dismissed accordingly. In conclusion, the judgment pronounced on 17.06.2015 dismissed the appeal due to its non-maintainability based on the prescribed tax effect limit.
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