1. This appeal is preferred by the revenue challenging the order passed by the Tribunal deleting the disallowance made under Section 40A(3) of the Income Tax Act, 1961 and accordingly allowing the appeal of the assessee.

2. The total tax effect which is the subject matter of this appeal is Rs. 4,87,730/-. At the time of hearing, the learned Counsel for the assessee raised a preliminary objection stating that in view of instruction No. 3/2011 issued on 09.02.2011, the revenue is precluded from filing the appeals where the tax effect does not exceed Rs, 10 lakhs before the High Court. Therefore, it was contended that as the subject matter of the appeal i.e., the tax effect is Rs. 4,87,730/-which is less than Rs. 10 lakhs, this appeal filed under Section 260A of the Income Tax Act, 1961 is not maintainable and it is liable to be dismissed on that short ground. In view of the aforesaid preliminary objection, the same is considered as a preliminary point.

3. The learned Senior Counsel Sri. Indra Kumar appearing for the Revenue contended that instruction No. 3/2011 expressly states at clause (11) that the instructions will apply to appeals filed on or after 09.02.2011. However,