THE DY. CIT, CENTRAL CIRCLE-1, BARODA vs. SHRI SURESHBHAI J. SHAH, BARODA

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ITA 1109/AHD/2016Status: DisposedITAT Ahmedabad04 October 2018AY 2012-133 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 as not maintainable, accepting the applicability of the CBDT circular on monetary limits for appeals. The Revenue can seek restoration if they can show the circular is inapplicable.

What were the facts?

The Revenue appealed against the deletion of penalty under Section 271AAA by the CIT(A). The assessee argued that the appeal was hit by a CBDT circular regarding monetary limits for filing appeals.

What were the issues?

Whether the Revenue's appeal is maintainable given the tax effect and the applicability of CBDT Circular No. 3 of 2018.

Which sections of the Income-tax Act were involved?

Section 271AAA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR

For Appellant: Shri Albinus Tirkey, Sr

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-12, Ahmedabad (‘CIT(A)’ in short), dated 2.12.2015 arising in the penalty order dated 16.07.2014 passed by the

ITA No.1109/Ahd/16 [DCIT vs. Shri Sureshbhai J. Shah] A.Y. 2012-13 - 2 -

Assessing Officer (AO) under s. 271AAA of the Income Tax Act, 1961 (the Act) concerning assessment year 2012-13.

2.

The grounds of appeal raised by the Revenue reads as under:-

“1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in law as well as facts and circumstances of the case by deleting the penalty u/s271AAA by amounting to Rs.13,00,000/- in spite of the fact that the assessee has not fulfilled the condition (ii) lay down in penalty u/s271AAA, in respect to substantiates the manner in which the undisclosed income was derived during the course of assessment & penalty proceedings.”

3.

At the time of hearing, it was submitted by the Ld.AR for the assessee that the appeal filed by the Revenue is hit by recently issued CBDT Circular No.3 of 2018 dated 11/07/2018 revising the previous thresholds pertaining to tax effects. As per aforesaid Circular, all pending appeals filed by Revenue are liable to be dismissed as a measure for reducing litigation where the tax effect does not exceed the prescribed monetary limit which is now revised at Rs.20 Lakhs. In the instant case, the tax effect on the disputed issues raised by the Revenue is stated to be not exceeding Rs.20 lakhs and therefore appeal of the Revenue is required to be dismissed in limine.

4.

The Learned DR for the Revenue fairly admitted the applicability of the CBDT Circular No. 3 of 2018. Accordingly, appeal of the Revenue is dismissed as not maintainable. However, it will be open to the Revenue to seek restoration of its appeal on

ITA No.1109/Ahd/16 [DCIT vs. Shri Sureshbhai J. Shah] A.Y. 2012-13 - 3 -

showing inapplicability of the aforesaid CBDT Circular in any manner.

5.

In the result, the appeal of the Revenue is dismissed.

This Order pronounced in Open Court on 04/10/2018

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 04/10/2018

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