2011 (4) TMI 326

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....is appeal by Revenue is against the order of the CIT(A) XVII, Mumbai dated 23.12.2009.   2. Revenue has raised two grounds on the issue of directing the A.O. to allow deduction under section 10A amounting to Rs. 5,78,432/- in respect of interest income, which according to the A.O. was not derived from the business or profession. 3. Briefly stated, assessee, engaged in the business of ma....

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....in money. The A.O. did not agree and treated the interest income as income from other sources and completed the assessment while allowing deduction under section 10A to the rest of income. The CIT(A), after considering the submissions and provisions of section 10A, following the ITAT order in the case of Living Stones Jewellery (P) Ltd. vs. DCIT 31 SOT 323 observed that the interest earned has nex....

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.... where the tax effect was leas than the prescribed limit. The learned counsel relied on the principles established in the above said case to submit that the present limit of Rs. 3,00,000/- make the Revenue appeal non-maintainable as the tax effect is less than Rs. 3,00,000/-. He further submitted that the Hon'ble Delhi High Court in the case of CIT vs. Delhi Race Club Ltd. in ITA No. 128 of 20....

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....gh Court in the case of CIT vs. Madhukar K. Inamdar (HUF) (supra) held that the circular will be applicable to the cases pending before the court either for admission or for final disposal. In view of the order of the jurisdictional High Court we hold that Instruction No. 3 dated 09.02.2011 is applicable for the appeal preferred by the Revenue. Therefore, the appeal is dismissed on the issue of ta....