ITO 13(2)(4), MUMBAI vs. SUNDIAL CREATIVE MEDIA PVT. LTD., MUMBAI

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ITA 7200/MUM/2019Status: DisposedITAT Mumbai03 May 2021AY 2007-083 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 held that the revenue's appeal was not maintainable as the quantum of penalty in dispute was below the monetary threshold limit of Rs. 50 Lacs, as per CBDT Circular No. 17/2019.

What were the facts?

The revenue appealed against the deletion of a penalty of Rs. 11 Lacs imposed under Section 271(1)(c) of the Income Tax Act. The penalty amount was below the prescribed threshold limit for revenue appeals.

What were the issues?

The primary issue was the maintainability of the revenue's appeal based on the monetary threshold limit stipulated by CBDT circulars for low tax effect appeals.

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, “H” BENCH, MUMBAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Shri R.N.Vasani – Ld. AR
For Respondent: Shri Gurbinder Singh-Ld. DR

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by revenue for Assessment Year [AY] 2007-08 contest the order of Ld. Commissioner of Income-Tax (Appeals)-21, Mumbai [CIT(A)] dated 30/08/2019 which has deleted the penalty of Rs.11 Lacs u/s 271(1)(c) as levied by Ld. AO vide penalty order dated 29/01/2019. 2. The Ld. AR, at the outset, submitted that the quantum of penalty under dispute is below prescribed threshold limit of Rs.50 Lacs and therefore, the revenue’s appeal is not maintainable in terms of latest low tax effect CBDT Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc. 142/2007-TTJ(Pt.). The Ld. DR could not point out any exception to controvert the plea raised by Ld. AR.

3.

After going through material on record, we find that quantum of penalty under dispute is below threshold monetary limit of Rs.50 Lacs and therefore, the appeal is not maintainable in terms of recently issued low tax effect Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc. 142/2007-TTJ(Pt.) issued by CBDT. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. In view of the same, the appeal is not maintainable.

4.

In view of the foregoing, the appeal stand dismissed. However, a liberty is given to revenue to seek recall of the appeal, if at a later stage, it is found that the matter is covered by any exceptions provided in any of the circular or in case the tax effect in the appeal exceeds the prescribed monetary limit.

5.

Resultantly, the appeal stands dismissed. Order pronounced on 3rd May, 2021. (Mahavir Singh) (Manoj Kumar Aggarwal) उपाध्यक्ष / Vice President लेखा दस्य / Accountant Member मुिंबई Mumbai; सदनािंक Dated : 03.05.2021 Sr.PS, Jaisy Varghese

आदेशकीप्रधिधलधपअग्रेधर्ि/Copy of the Order forwarded to : 1. अपीलाथी/ The Appellant 2. प्रत्यथी/ The Respondent 3. आयकरआयुक्त(अपील) / The CIT(A) 4. आयकरआयुक्त/ CIT– concerned 5. सवभागीयप्रसतसनसध, आयकरअपीलीयअसधकरण, मुिंबई/ DR, ITAT, Mumbai 6. गार्डफाईल / Guard File

आदेशाि सार/ BY ORDER,

उप/सहायक पुंजीकार (Dy./Asstt.

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