G.D Agrawal, V.P:— This appeal of the Revenue is directed against the order of learned CIT(A) dated 18th August, 2011 for the AY 2002-2003.
2. At the outset, the learned counsel for the assessee contends that as per Central Board of Direct Taxes, Instruction No. 3/2011 dated 09 February, 2011, the revised limit for preferring revenue's appeals has been increased from Rs. 2 lacs to Rs. 3 lacs. That the tax effect in the present revenue's appeal is Rs. 2,57,072/- which is below the prescribed limit of Rs. 3 lacs. In view thereof, the revenue's appeal may be dismissed as the tax effect being below the prescribed limit.
3. The learned Departmental Representative agrees to the tax calculation furnished by the assessee.
4. We have heard both sides. The CBDT, vide above instruction has clearly laid down that the revenue should not prefer appeals against assessees before ITAT if the tax effect involved in the appeal, excluding interest, is less than Rs. 3 lacs. The tax payable in the present appeal being below Rs. 3 lacs, the revenue's appeal is dismissed as not maintainable in view of CBDT Instruction.
5. In the result, the appeal of the Revenue is dismissed.