THE ITO, WARD-5(2), AHMEDABAD vs. M/S. PASL WINDTECH PVT. LTD., AHMEDABAD

PDF · subscribers
ITA 1351/AHD/2014Status: DisposedITAT Ahmedabad29 January 2019AY 2007-082 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal as not maintainable. This was based on a CBDT circular which mandates that appeals should not be filed if the tax effect is below Rs. 20 Lakhs, and the present case did not fall under any exemption.

What were the facts?

The Assessing Officer appealed the deletion of a penalty imposed under section 271(1)(c) for notional property income. The penalty was for an addition of Rs. 48,26,251/-.

What were the issues?

Whether the Revenue's appeal is maintainable based on the tax effect and CBDT circulars. The appeal concerned a penalty for notional property income.

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, AHMEDABAD “A” BENCH, AHMEDABAD

Per Pramod Kumar, Vice President:

1.

By way of this appeal, the Assessing Officer has challenged correctness of the order dated 26th February, 2014, passed by the learned CIT(A)-XI, Ahmedabad deleting penalty of Rs.15,92,233/- imposed under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2007-08, on the following grounds:

“The Ld. CIT(A) has erred in law and on facts in deleting the penalty of Rs.15,92,233/- under section 271(1)(c) in respect of addition of Rs.48,26,251/- made on account of notional property income.

On the facts and circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the Assessing Officer.

It is, therefore, prayed that the order of the Ld. CIT(A) may be set- aside and that of the Assessing Officer be restored.”

2.

At the outset, learned counsel for the assessee submitted that the present appeal of the Revenue needs to be dismissed on account of low tax effect in view of the recent CBDT Circular No.3 of 2018 dated 11.07.2018. The learned

ITA No.1351/Ahd/2014 ITO vs. PASL Windtech Pvt Ltd Assessment year: 2007-08 Page 2 of 2 Departmental Representative fairly admitted that the tax effect involved in this appeal is less than the limit prescribed by the aforesaid CBDT Circular.

3.

We have heard the rival submissions and perused the material available on record. We find that prima-facie this appeal of the Revenue is not maintainable in view of the recent CBDT Circular No.3/2018 in F.No.279/Misc.142/2007-ITJ (Pt) dated 11th July, 2018, vide which it has been decided by the Board that no departmental appeals should be filed before the Tribunal if the tax effect by virtue of the Commissioner of Income-tax (Appeals)’s order is below Rs. 20 Lakhs. The Board has provided exemptions at clause (10) of the Instructions wherein it has been provided that these instructions will not be applicable, where the Constitutional validity of the provisions of an Act/Rule is under challenge or where Board’s order, notification, instruction or circular has been held to be illegal or where Revenue Audit objection in the case has been accepted by the Department or where the addition relates to undisclosed foreign assets/bank accounts etc. We find that the present case does not fall within the exemption clause and the tax effect is less than Rs.20 Lakhs. Therefore, the present appeal is not maintainable and hence dismissed.

4.

In the result, the appeal of the Revenue is dismissed. Pronounced in the open court today on the 29th January, 2019.

Sd/- Sd/- Ms. Madhumita Roy Pramod Kumar (Judicial Member) (Vice President) Ahmedabad, the 29th day of January, 2019 PBN/*

Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →