DY. C.I.T. CENTRAL CIR.-1(2), NAGPUR vs. M/S BULDHANA URBAN CO-OP CREDIT SOCIETY LTD., BULDHANA

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ITA 297/NAG/2016Status: DisposedITAT Nagpur25 March 2019AY 2008-094 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal solely on the grounds of low tax effect, as per the CBDT Circular No. 3/2018. The circular raised the monetary limit for filing appeals before the Tribunal to Rs. 20 lakhs.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order deleting the penalty levied under Section 271(1)(c). The tax effect involved in the appeal was less than Rs. 20 lakhs.

What were the issues?

Whether the Revenue's appeal should be dismissed due to low tax effect as per CBDT Circular No. 3/2018, without going into the merits of the penalty deletion.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM

For Appellant: Shri Umang Agarwal
For Respondent: Shri U.U. Kasar

आदेश / ORDER

PER VIKAS AWASTHY, JM :

The appeal has been filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-3, Nagpur dated 24-02-2016 for the assessment year 2008-09.

2.

Shri Umang Agarwal appearing on behalf of the assessee submitted at the outset that the appeal by Revenue is liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No. 3/2018, dated 11-07-2018.

3.

Shri Shri U.U. Kasar representing the Department fairly admitted that in the present appeal by the Department tax effect is less than Rs.20 Lakhs.

4.

We have heard the submissions of ld. DR and have perused the material available on record. The Revenue is in appeal against the order of Commissioner of Income Tax (Appeal) in deleting the penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) Rs.19.71 lakhs. The tax effect involved in appeal is less than the monetary limit prescribed by the recent CBDT Circular for filing of appeals before the

3 ITA No. 297/NAG/2016, A.Y. 2008-09

Tribunal by the Department. The CBDT vide Circular No. 3/2018, dated 11-07-2018 has raised the monetary limit of tax effect for filing of appeals by the Department before the Tribunal to Rs.20 lakhs. The Circular applies to the appeals to be filed by the Department in future as well as the appeals pending before the Tribunal. Without going into merit of the issues raised in the appeal, in view of the CBDT Circular the present appeal of the Revenue is dismissed on account of low tax effect.

5.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to show that the appeal is protected by the exceptions mentioned in Para 10 of the Circular (supra).

6.

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open court at the time of hearing on Monday, the 25th day of March, 2019.

Sd/- Sd/- (डी. करुणाकरा राव/D. Karunakara Rao) (ववकास अवस्थी / Vikas Awasthy) ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER

नागऩुर / Nagpur; ददनाांक / Dated : 25th March, 2019. RK

4 ITA No. 297/NAG/2016, A.Y. 2008-09

आदेश की प्रयिलऱवऩ अग्रेवषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. आयकर आयुक्त (अऩीऱ) / The CIT(A)-3, Nagpur 3. आयकर आयुक्त / The CIT (Central), Nagpur 4. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, नागऩुर बेंच, 5. नागऩुर / DR, ITAT, Nagpur Bench, Nagpur. गाडड फ़ाइऱ / Guard File. 6. //सत्यावऩत प्रयत // True Copy// आदेशानुसार / BY ORDER,

यनजी सधचव / Private Secretary, आयकर अऩीऱीय अधधकरण, नागऩुर / ITAT, Nagpur

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