Income Tax Appellate Tribunal (ITAT) Ahmedabad in a recent judgment disposed off a bunch of 325 appeals and related cross objections in view of the recent CBDT Instruction No.21/2015 dated 10-12-2015 on the ground that tax effect involved in all appeals individually was less than Rs.10 lakhs hence these appeals were not maintainable before the Tribunal.

Case Details:
I.T.A. No.: 1753/Ahd/2015 & Others AY: 2011-12
ACIT (Appellant) vs M/s. Mahendra Chemicals (Respondent)
Date of Order: 16-12-2015

Recently issued CBDT Instruction 21/2015 dated 10-12-2015 has revised the monetary limits for filing of appeals before Income tax Tribunals/High Courts/Supreme Court. As per the Instruction, the appeals shall not be filed before Appellate Tribunal where the tax effect does not exceed the monetary limits of Rs. 10 lakhs.

While disposing off the appeals, ITAT referred to the order of the Co-ordinate Bench in DCIT Vs. Soma Textiles & Industries Ltd., in ITA No.302/Ahd/2014, dated 15.12.2015. In the case aforesaid case of Soma Textiles & Industries Ltd. , the ITAT also dealt with the retrospective operation of the said instruction and referred to para 10 of the said instruction which reads as under:

10. 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 Pending appeals below the specified tax limits in para 3 above may be withdrawn/ not pressed........

Following the order of the Tribunal as above, ITAT dismissed a total of 325 appeals and related cross objections before it on the same terms as in Soma Textiles i.e.; with the liberty specifically granted to the Assessing Officers to approach this Tribunal in case there were any cases, inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular, exceeds Rs 10,00,000, so that the related appeals can be recalled for adjudication on merits.

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