IN INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM ITA No.1631/PN/2014 Assessment Year : 2007-08 Dy. Commissioner of Income Tax, Circle 1, Solapur. Appellant Vs. Shri Shankar Sahakari Sakhar Karkhana Limited, Sadashivnagar, Tal. Malshiras, Dist. Solapur. PAN : AAAAS3735M Respondent Appellant by : Shri P. L. Kureel Respondent by : Shri Prasanna Joshi Date of Hearing : 29.09.2016 Date of Pronouncement: 29.09.2016 ORDER PER ANIL CHATURVEDI, AM : This appeal by Revenue is directed against order of Commissioner of Income Tax (Appeals)-III, Pune dated 19.06.2014 for assessment year 2007-08. 2. Revenue has raised following effective ground of appeal :- 01] Whether on facts and in circumstances of case and in law, learned CIT(A) has erred in deleting addition made by Assessing Officer on account of sale of sugar at concessional rate at Rs.15,08,719/- to its members and non members. 2 ITA No.1631/PN/2014 3. At outset, ld. AR submitted that appeal of Revenue is not maintainable on account of low tax effect and, therefore, be dismissed. He further submitted that against order of ld. CIT(A), assessee has also not preferred any appeal. ld. DR fairly admitted that tax effect on impugned additions is less than limit prescribed by CBDT Circular of 10/12/2015 bearing No. 21 of 2015 and therefore appeal be decided accordingly. 4. We have heard both parties and perused materials available on record. On perusing grounds of appeal raised by Revenue, we find that Revenue is aggrieved by order of ld. CIT(A) in respect of relief given by him. As per announcement of Central Board of Direct Taxes (CBDT) dated 10/12/2015 (Circular No. 21 of 2015), no Department appeals are to be filed against relief given by ld. CIT(A) before Income Tax Appellate Tribunal unless tax effect, excluding interest, exceeds Rs.10 lakhs and it further states that instructions will apply retrospectively to pending appeals also. In present case, since it is undisputed fact that on additions which are in dispute, tax effect is less than Rs.10 lakhs and in absence of any material placed on record by Revenue to demonstrate that issue in present appeal is covered by exemptions specified in clause (8) of aforesaid CBDT Circular, we are of view that monetary limit prescribed by instructions of aforesaid CBDT Circular would be applicable to present appeal of Department and therefore present appeal is not maintainable on account of low tax effect. In such circumstances, we dismiss appeal of Revenue without expressing any opinion on merits of case. However, in case there is any error in computation of tax effect involved or if for any reason, aforesaid CBDT Circular is not applicable, it would be open to Revenue to seek revival of appeal. 3 ITA No.1631/PN/2014 5. In result, appeal of Revenue is dismissed. Order pronounced in open Court on this 29th day of September, 2016. Sd/- Sd/- (SUSHMA CHOWLA) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER Pune; Dated : 29th September, 2016. Copy of order is forwarded to : 1) Assessee; 2) Department; 3) CIT(A)-III, Pune; 4) CIT-IV, Pune; 5) DR B Bench, I.T.A.T., Pune; 6) Guard File. BY ORDER, //True Copy// Sr. Private Secretary ITAT, Pune Dy. Commissioner of Income-tax Circle – 1, Solapur v. Shankar Sahakari Sakhar Karkhana Limited