ASSISTANT COMMISSIONER OF INCOME-TAX vs. MANGALMURTI DEVELOPERS,, KOLHAPUR

The perusal of records show that the issue raised in the appeal filed by Revenue is against deletion of penalty under section 271(1)(c) of the Act at ₹ 11,13,615/-.

Despite service of notice, none appeared on behalf of assessee nor any application for adjournment was moved. We proceed to decide the present appeal because of low tax effect and also because the issue on merits has been decided in favour of assessee.

On perusal of record and after hearing the learned Departmental Representative for the Revenue, it transpires that tax effect in the present appeal against deletion of penalty levied under section 271(1)(c) of the Act is less than the limit prescribed by the CBDT vide Circular No.3/2018, dated 11.07.2018. Hence, the appeal of Revenue is not maintainable. In any case, the issue raised on merits has been decided by the Tribunal in assessee’s favour in ITA No.1220/PUN/2015, relating to assessment year 2011-12, order dated 25.01.2018. Consequent thereto, the basis for levy of penalty is also absent. Hence, we dismiss the appeal filed by Revenue.

In the result, appeal of Revenue is dismissed.