Monetary tax limits of 'Appeals/SLPs:: " S.No. Appeals in IT, Monetary Limit (in Rs), matters 1. ITAT - 10 Lakhs, 2. H C - 20 Lakhs 3. S C - 25,00,000/-

This appeal by Revenue for A.Y. 2009-10 is directed against order of CIT(A)-XXIX, New Delhi dated 24th Feb., 2014. It is observed that tax effect involved in this appeal by Revenue is below `10 lakhs. CBDT in its Circular No.21/2015 dated 10th Dec, 2015 has revised monetary limit for filing of departmental appeals to ITAT at `10 lakhs which is evident from para 3 of Circular, which reads as under:- " Henceforth, appeal/SLPs shall not be filed in cases where the tax effect does not exceed monetary limits given hereunder:- S.No. Appeals in Income-tax Monetary Limit (in Rs) matters 1. Before Appellate Tribunal 10,00,000/- 2. Before High Court 20,00,000/- 3. Before Supreme Court 25,00,000/- It is clarified that an appeal should not be filed merely because tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of case." In para 10 of Circular, such monetary limits have been made applicable retrospectively. For ready reference, we reproduce para 10 below:- "This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn/not pressed. Appeals before the Supreme Court will be governed by instructions on this subject, operative at time when such appeal was filed." Therefore, above Circular would be squarely applicable to appeal under consideration before us. DR who appeared at time of hearing before us stated that he needs some time to call for report from AO as well as instructions from Administrative CIT for withdrawing this appeal because appeal was filed with approval of Administrative CIT. DR further pointed out that in para 7 of said Circular, it has been clarified by CBDT that withdrawal of this appeal by Revenue on account of low tax effect should not be considered as a precedent in subsequent years of acceptance of issues involved in this appeal and, therefore, if in subsequent year similar issue arises before ITAT where appeal is above tax limit as prescribed in this Circular, same should be decided on merits. Counsel for assessee, on the other hand, stated that Circular is squarely applicable to facts of assessee's case. After considering submissions of both sides, we are of opinion that there is no necessity for adjourning appeal & calling report from AO because, apparently, tax effect involved in this appeal of Revenue is below `10 lakhs. However, we add here that if on receipt of order AO finds that tax effect is above `10 lakhs or, in any other manner, Circular is not applicable, he will be at liberty to file miscellaneous application. We also agree with contention of 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 Revenue to take up issue involved in this appeal before ITAT on merits if tax effect in those years is more than `10 lakhs. With this remark, we deem it proper to dismiss the appeal in light of Circular No.21/2015 of CBDT dated 10th December, 2015. :: In the result, the appeal of the Revenue is dismissed. 

Case Reference- [Appellant] V/S Shri Nagesh Kholi, C/o Raghu Nath Rai & Co., , 9, Mathura Road, Jangpura-Jangpura-B, New Delhi - 110 014; PAN : BBYPK3694N. [Respondent]

Deputy Director of Income Tax, circle- Circle-3(1), International, International Taxation, New Delhi.