DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 8, PUNE vs. SHEETAL K TEJWANI, PUNE

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.

“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

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.

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.

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.

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