Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: HON’BLE SHRI C.N. PRASAD, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
सुनवाई की तारीख/ : 09/12/2019 Date of Hearing घोषणा की तारीख / 09/12/2019 : Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) Aforesaid appeal by revenue for Assessment Year [in short referred 1. to as ‘AY’] 2009-10 contest the order of Ld. Commissioner of Income- Tax (Appeals)-12, Mumbai, [in short referred to as ‘CIT(A)’], Appeal No. CIT(A)-12/DCIT-6(2)(2)/B2-140/15-16 dated 11/09/2018 qua deletion of penalty u/s 271(1)(c) for Rs.24,190/- in respect of disallowance of Rs.78,283/- made in the assessment order on account of bogus 2 M/s. Enhance Ambient Communications Pvt. Ltd. Assessment Year :2010-11 purchases. The stated penalty was imposed by Ld. Assessing Officer vide order dated 29/09/2015 but the same was deleted by first appellate authority, finding merits in assessee’ submissions. Aggrieved, the revenue is in further appeal before us.
At the time of hearing, none appeared for assessee and no valid adjournment application is on record. Therefore, the matter was proceeded with ex-parte qua the assessee in view of the fact that the quantum of penalty being contested by revenue is less than monetary limit of Rs. 50 Lacs as prescribed by CBDT in its recently issued Circular No.17/2019 dated 08/08/2019 [F.No.279/Misc.142/2007-TTJ(Pt.) Government of India, Ministry of Finance, Department of Revenue] and therefore, the appeal is not maintainable in terms of the said circular. The Ld. DR was unable to point out any exception which would suggest that the benefit of said circular would not be applicable to factual matrix.
Upon perusal of case records, prima facie, it appears that the tax effect of quantum of penalty being contested by the revenue is less than prescribed limit of Rs.50 Lacs and the same is covered by recently issued low tax effect Circular No.17/2019 dated 08/08/2019 issued by Central Board of Direct Taxes [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. Undisputedly, the factual matrix is not covered by any of the exceptions as provided in para-10 of Circular no. 3 of 2018 dated 11/07/2018. The aforesaid limits, as per para 13 of the Circular no. 3 of 2018 dated 11/07/2018, applies to pending appeals also. In view of the admitted position, we dismiss the revenue’s appeal.