Case Law Details
We have heard the rival submissions and perused the material available on record. We find that the tax effect in the present case is below Rs.3 lakh and we find that as per this Board instruction No.3 dated 9.2.2011, the limit of tax effect for filing the appeal before the Tribunal has been increased to Rs. 3 lakhs and the same for filing appeal before Hon’ble High Court has been increased to Rs.10 lakhs. In the case of CIT Vs. Rajan Ramanee (supra), the Hon’ble Delhi High Court has applied this Board instruction dated 9.2.2011 and dismissed the appeal of the revenue because of low tax effect.
In that case also, the appeal was filed by the revenue before the Hon’ble Delhi High Court prior to the date of this Board instruction as submitted by ld.AR of the assessee and hence, we do not find any merit in the submission of the ld. DR of the revenue that this Board instruction is applicable only to those appeals which are filed by the revenue after the date of this Board instruction. Since this Board instruction was applied by Hon’ble Delhi High Court to pending appeals also, the same is applicable in the present case also. Ld. DR of the revenue could not show that the tax effect in the present case is above Rs.3 lakhs and hence, this appeal of the revenue is not maintainable because of low tax effect as per Board instruction No.3 of 9.2.2011.
INCOME TAX APPELLATE TRIBUNAL Delhi
ITA No. 692/Del. /2011 – Assessment Year: 2006- 07
DCIT V/s. M/s SMS Holdings
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