ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -2, NASHIK vs. TANAJI ANNASAHEB PATIL, NASHIK

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ITA 1561/PUN/2019Status: DisposedITAT Pune14 July 2022AY 2009-103 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 appeal filed by the Revenue. This was based on the CBDT circular which revised the monetary limit for filing appeals to Rs. 50.00 lakh, and the tax effect in this case was below that limit.

What were the facts?

The Revenue filed an appeal against a penalty order under section 271(1)(c) of the Income Tax Act, 1961. The tax effect in the appeal was Rs. 1,85,923/-.

What were the issues?

Whether the Revenue's appeal should be entertained 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, “B”

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

For Appellant: Shri Sanket Joshi – AR
For Respondent: Shri M.G.Jasnani - DR
Hearing: 13/07/2022Pronounced: 14/07/2022

आदेश/ ORDER

PER DR. DIPAK P. RIPOTE, AM:

1.

This appeal filed by the Revenue is directed against the order of ld. Commissioner of Income Tax(Appeals)-2, Pune , dated 02.07.2019, against the penalty order under section 271(1)(c) of the Income Tax Act, 1961 [hereinafter also called as “the Act”] levying penalty at Rs.1,85,293/-.

2.

At the outset of hearing, Shri Sanket Joshi, ld.AR for the assessee explained that Tax Effect is low as per CBDT Circular.

However, perusal of the record reveals that the tax effect in the instant appeal is less than Rs.50.00 lakh, which the ld.DR conceded. Tax Effect as per Form 36 column 8a is Rs.1,85,923/-.

3.

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 lakh. Such limit has now been enhanced in the Circular dated 08-08-2019 to Rs.50.00 lakh. Since tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakh, we are not inclined to entertain this appeal.

4.

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. However, it is made clear that if the tax effect in this appeal is found by the AO to be more than the prescribed monetary limit of Rs.50.00 lakh or the case(s) is found to be covered by an exception, it will be open to the Revenue to move the Tribunal for recalling the order.

5.

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

Order pronounced in the open Court on 14th July, 2022.

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