RAJIV SHARMA, SATISH CHANDRA, J. - (1.) PRESENT Appeal is filed by the department under Section 260 -A of the Income Tax Act 1961, against the judgment and order dated 07.09.2010 passed by the Income Tax Appellate Tribunal, Lucknow in Appeal No.455/Luc/2010 for the assessment year 1998 -99.
(2.) THE brief facts of the case are that during the assessment year under consideration, the assessee ­ respondent has filed its return declaring loss of Rs.18,47,71,360/ -. On 27.03.2001, the A.O. has passed an order under Section 143 (3) of the Act on the net loss of Rs.16,17,75,680/ -. The CIT(A) vide its order dated 17.03.2010, partly allowed the appeal. Being aggrieved, the Department has filed an appeal before the Tribunal which was dismissed by observing that the tax effect being less than Rs.2,00,000/ - lacs, the appeal of the Revenue was not maintainable in view of Instruction No.5 of 2008 dated 15.05.2008 of the CBDT and in view of the provisions of the Section 268A of the Act. Still not being satisfied, the department has filed the present appeal. With this background, heard Sri Ghanshyam Chaudhary learned counsel for the department and Sri Namit Sharma, learned counsel for the assessee.
(3.) IN the instant case, the Tribunal has dismissed the departmental appeal by observing that the tax effect is less than the prescribed limit mentioned in the CBDT Circulars.;