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Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: SHRI D. KARUNAKARA RAO, AM
PER D. KARUNAKARA RAO, AM :
This is the appeal filed by Revenue against the order of CIT(A)-6, Pune dated 02-05-2017 for the Assessment Year 2013-14.
Grounds raised by the Revenue are extracted below :
“1. Whether on the facts and circumstances of the case the Ld.CIT(A) is justified in reducing the penalty levied u/s.271(1)(c) of the I.T. Act, 1961, for furnishing of inaccurate particulars of income, holding that there is no finding of any evasion? 2. Whether on the facts and circumstances of the case the Ld.CIT(A) is justified in not following the observations of Hon’ble Supreme Court in the case of Mak Data Pvt. Ltd. 38 Taxman 448 (SC), in which Apex Court clearly held that, voluntary disclosure does not absolve assessee from penalty? 3. The appellant craves leave to add, amend or alter any of the above grounds of appeal.”
2 ITA No.2165/PUN/2017 Mrs. Sheetal K. Tejwani
Briefly stated relevant facts includes that the assessee is an
individual engaged in the business of land trading. Assessee filed the
return of income declaring total income of Rs.22,42,070/-. There was
survey in the business premises of assessee which resulted in seizure of
certain papers. Assessee offered Rs.1 crore as additional income. In the
assessment, AO made couple of additions on account of interest and
depreciation and eventually assessed the income of the assessee at
Rs.34,47,070/-. AO initiated penalty proceedings u/s.271(1)(c) of the
Act for furnishing inaccurate particulars of income and concealing
income and levied penalty of Rs.31 lakhs. In the First Appellate
proceedings, the CIT(A) sustained the penalty on the sum of Rs.62 lakhs
only and reasoned that there is no specific finding of any evasion.
Thus, out of undisclosed income of Rs.1 crore and gave relief on the
balance amount of Rs.38 lakhs. Aggrieved with the order of CIT(A), the
Revenue filed the present appeal before the Tribunal with the
aforementioned grounds.
Before me, Ld. DR for the Revenue narrated the facts and prayed
for confirming the order of AO. However, he fairly submitted that the
tax effect involved in this appeal is only Rs.12,91,520/-. However, there
is none to represent the assessee.
Heard the Ld. DR for the Revenue and perused the orders of the
Revenue on the issue of reduction of penalty u/s.271(1)(c) of the Act by
the CIT(A). However, on going through the facts of the case, I find the
total tax effect involved in the present appeal works is only
Rs.12,91,620/-. The CBDT circular No.3/2018 dated 11th July, 2018
raised the monetary limit of tax effect for filing of appeal by the
Department before the Tribunal to Rs.20 Lakhs. The circular applies to
3 ITA No.2165/PUN/2017 Mrs. Sheetal K. Tejwani
the pending appeals of the Department before the Tribunal too. Thus,
in view of the CBDT circular, I am of the opinion that the present appeal
of the Revenue is liable to be dismissed on account of low tax effect
without going into the merits of the case.
In the result, the appeal of the Revenue is dismissed.
Order pronounced on this 05th day of October, 2018.
Sd/- (D.KARUNAKARA RAO) लेखा सद� / ACCOUNTANT MEMBER पुणे / Pune; �दनांक Dated : 05th October, 2018. Satish
आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to : अ�ेिषत
अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / The CIT(A)-6, Pune 3. आयकर आयु� / The Pr.CIT-5, Pune 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6.
आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER,स आदेशानुसार
स�यािपत �ित //True Copy// Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune