JOINT COMMISSIONER OF INCOME-TAX (OSD), PUNE vs. M/S. VENKY'S INDIA LTD., PUNE

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ITA 160/PUN/2022Status: DisposedITAT Pune22 December 2022AY 2011-123 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 appeals filed by the Revenue. The dismissal was based on the low tax effect, which was below the enhanced monetary limits for appeals stipulated by the CBDT.

What were the facts?

The Revenue filed appeals against penalty orders under section 271(1)(c) for AY 2010-11 and 2011-12. The tax effect in these appeals was below the revised monetary limit set by the CBDT for filing appeals.

What were the issues?

Whether the appeals filed by the Revenue are maintainable given the low tax effect in light of revised CBDT circulars on monetary limits for 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, PUNE BENCHES “B” :: PUNE

Before: SHRI S.S.GODARA & DR. DIPAK P. RIPOTE

For Appellant: Shri Nikhil Patakh – AR
For Respondent: Shri M.G.Jasnani – DR
Hearing: 19/12/2022Pronounced: 22/12/2022

ORDER PER DR. DIPAK P. RIPOTE, AM: These two appeals filed by the Revenue are directed against the separate orders of ld.Commissioner of Income Tax(Appeal), Pune-11 both dated 22.12.2021 emanating from separate penalty orders of DCIT, Central Circle-1(2), Pune for A.Y. 2010-11 & 2011-12; respectively, under section 271(1)(c) of the I.T.Act, 1961.

2.

The ld.Authorised Representative(ld.AR) for the assessee submitted that tax effect involved in these cases are as below: For A.Y.2010-11 Rs.5,76,760/- For A.Y.2011-12 Quantum is Rs.1,12,397/- & 160/PUN/2022 M/s.Venky’s India Limited [A] 3. The ld.Departmental Representative(ld.DR) for the Revenue relied on the order of the Assessing Officer(AO).

4.

We have heard both the parties and perused the records. It is observed that the AO has levied penalty under section 271(1)(c) of Rs.5,76,760/- for A.Y. 2010-11 and Rs.1,72,397/- for A.Y. 2011-12.

1.

4.1 The CBDT has issued circular No.17/2019 dated 08.08.2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11/07/2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at Rs.20.00 lakhs. Such limit has now been enhanced in the Circular dated 08-08-2019 to Rs.50.00 lakhs. The tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakhs.

5.

At this juncture, it is pertinent to note that the CBDT vide F.No.279/Misc/M-13/2018-ITJ dated 20.08.2019 has clarified that the revised monetary limits so mentioned in Circular No.17/2019 are applicable to all pending appeals. In view of the foregoing discussion, we dismiss the appeal filed by the Revenue on account of low tax effect. However, Revenue is at liberty to file Miscellaneous Application, if the appeal is covered by any of the exceptions mentioned in the circular. & 160/PUN/2022 M/s.Venky’s India Limited [A] 6. In the result, both appeals of the Revenue are dismissed as not maintainable. Order pronounced in the open Court on 22nd December, 2022.

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