COMMISSIONER OF INCOME TAX RAJKOT-III vs. GUJARAT CERAMIC TILES

ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) [1.0] Feeling aggrieved and dissatisfied with the impugned judgment and order dated 22.11.2005 passed by the learned Income Tax Appellate Tribunal, Rajkot Bench (hereinafter referred to as “Tribunal”) in ITA No.632/RJT/2005   for   the   Assessment   Year   2000­01   by   which   the O/TAXAP/1227/2006 JUDGMENT learned Tribunal has deleted the penalty imposed/penalty under section 271D of the Income Tax Act, 1961 (hereinafter referred to as “Act”) on the ground that cash loans/deposits have been made by the partners themselves. [2.0] Today, when the present Tax Appeal is taken up for final hearing / further hearing, Shri Soparkar, learned Advocate appearing on behalf of the respondent has pointed out that amount of penalty involved in the present appeal is only Rs.2,20,000/­. It is submitted that therefore in view of the Instruction No.2/2005 issued by the CBDT, present Tax Appeal may not be entertained and/or may be dismissed on the ground of smallness of the amount involved and/or amount involved is below the monetary limits for filing the appeal before the High Court, in light of Instruction No.2/2005. [3.0] In view of the above and considering Instruction No.2/2005 with respect to the monetary limits for filing the appeal before the High Court issued   by   the   CBDT   which   had   come   into   effect   with   effect   from 31.10.2005 and the present appeal is of the year 2006 and the amount involved   is   Rs.2,20,000/­   only   i.e.   below   the   monetary   limits   of Rs.4,00,000/­ provided for filing appeal before the High Court, present Tax Appeal is not entertained and/or dismissed on the aforesaid ground alone, however keeping the question of law open. (M.R. SHAH, J.) (S.H. VORA, J.) O/TAXAP/1227/2006 JUDGMENT Ajay