I.T.O. Vs. ARATI JANA

JUDGEMENT

(1.) THIS appeal by the revenue is directed against the order of CIT(A), XXXIII, Kolkata dated 23.05.2012. and pertains to Assessment Year 2007 -08.

(2.) AT the outset, it was stated by Ld. Counsel for the assessee that tax effect in this appeal of Revenue is below the prescribed monetary limits for filing of appeals before ITAT. In this appeal of Revenue quantum of addition is Rs. 10,56,967/ - and the tax effect is Rs. 3,73,835/ -. The appeal relates to Assessment Year 2007 -08 and filed before the Tribunal on 23.07.2012. Ld. Counsel for the assessee stated that in view of the recent Instruction No. 5/2014 issued by CBDT on 10.07.2014 revising monetary limits for filing of appeal before ITAT fixing the tax effect limit of Rs. 4 lacs, the same is not maintainable and liable to be dismissed in limine. The only issue now remains before us is, whether, this appeal of revenue, which is below the prescribed limit of tax effect in view of the Board's Instruction No. 5/2014 issued on 10.07.2014 revising the monetary limits for filing of appeals by the Department before ITAT is maintainable or not. Ld. CIT -DR has drawn our attention to para -11 of the Instruction and argued that this will apply to the appeals filed on or after 10.07.2014 and not to the appeal filed prior to 10.07.2014. Hence, he vehemently opposed the argument of Ld. counsel for the assessee and stated that this instruction is prospective and not retrospective.

(3.) WE find from the above case law of Hon'ble Gujarat High Court in the case of Sureshcahandra Durgaprasad Khatod (HUF), (supra) that in the similar situation and exactly identical instructions were applied to the appeals filed retrospectively. Hon'ble Gujarat High Court has discussed that almost all High Courts are of the unanimous view, considering the main objective of such instructions that to reduce the pending litigation, where the tax effect is considerable low or small, the appeal is not maintainable. The recent instruction revising the monetary limit to Rs. 4 lakh for filing appeal before ITAT on income tax matters, as issued vide Instruction No. 5/2014 F. No. 279/Misc.142/2007 -ITJ(Pt) dated 10th July, 2014 will apply to pending appeals also for the reason that the same is exactly identical to earlier instructions. The relevant circular issued by CBDT reads as under: