COMMISSIONER OF INCOME TAX RAJKOT-III vs. RAJ TEA TRADERS

ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) [1.0] Feeling   aggrieved   and   dissatisfied   with   the   impugned judgment   and   order   dated   12.12.2005   passed   by   the   learned Income Tax Appellate Tribunal, Rajkot Bench (hereinafter referred to as “Tribunal”) in ITA No.1383/RJT/2005 for the Assessment Year   1998­99   by   which   the   learned   Tribunal   has   deleted   the O/TAXAP/1226/2006 JUDGMENT 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] It is required to be noted that the present Tax Appeal is of the year   2006   challenging   the   judgment   and   order   passed   by   the learned Tribunal  in the month of December 2005. Even the appeal has been admitted as far as back in the month of April 2007. The respondent –  assessee is  reported to be  unserved. Till  date  no further steps are taken by the appellant – Revenue to serve the respondent – assessee. Even today also, the respondent – assessee is reported to be unserved due to change of address. No steps are taken   to   serve   the   unserved   respondent   despite   sufficient   time granted. [3.0] Under the circumstances, we have no other alternative but to dismiss the present tax appeal for non­prosecution. Even otherwise it is required to be noted that the amount of penalty involved in the present   appeal   is   only   Rs.59,981/­.   Therefore,   in   view   of   the Instruction No.2/2005 issued by the CBDT, present Tax Appeal is required   to   be   dismissed/not   entertained   on   the   ground   of smallness of amount involved and/or amount involved is below the monetary limit for filing an appeal before the High Court i.e. less than Rs.4 lac in light of Instruction No.2/2005. [4.0] 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 O/TAXAP/1226/2006 JUDGMENT effect from 31.10.2005 and the present appeal is of the year 2006 and   the   amount   involved   is   Rs.59,981/­   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.)

Ajay