COMMISSIONER OF INCOME TAX-VII Vs. SANJAY CHITKARA

JUDGEMENT

(1.) This appeal by the Revenue is directed against an order dated 28th March 2013 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 3690/Del/2010. The ITAT in its impugned order noted that the tax effect was Rs. 2,92,000. The ITAT noted that in terms of the Income Tax Department's Instruction No. 3/2011 dated 9th February 2011, issued under Sec. 268 A (1) of the Income Tax Act 1961, the Revenue was not permitted to file an appeal before the ITAT where the tax effect did not exceed Rs. 3 lakhs. The ITAT referred to the decision of this Court dated 25th March 2011 in ITA Nos. 3 to 5 of 2010 and held that the said Instruction No. 3 would apply to pending appeals as well. Accordingly the Revenue's appeal was dismissed by the ITAT.

(2.) When the present appeal was listed on 28th April 2015 this Court passed the following order:

(3.) A letter dated 7th May 2015 has been sent by the Principal Chief Commissioner of Income Tax (Pr CCIT) to the Registrar of this Court. The explanation offered in the said letter for the Revenue's decision to file the present appeal is that the questions of law raised in the appeal were only on the issue whether the ITAT could have applied the Instruction No. 3/2011 to the appeal pending before it considering that the said appeal was filed prior to the date of the said instruction i.e. prior to 9th February 2011.