DCIT 3(3)1), MUMBAI vs. SAURASHTRA FUELS P.LTD, MUMBAI

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ITA 2271/MUM/2017Status: DisposedITAT Mumbai16 August 2018AY 2008-094 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 noted that the tax effect was below the monetary limit of Rs. 20 lakh as per CBDT Circular No. 3 of 2018. Therefore, the appeal filed by the Revenue was not maintainable.

What were the facts?

The Revenue filed an appeal against an order that deleted a penalty of Rs. 19,39,180/- imposed under section 271(1)(c). The assessee pointed out that the tax effect in the appeal was below the prescribed monetary limit.

What were the issues?

Whether the Revenue's appeal is maintainable when the tax effect is below the prescribed monetary limit set by CBDT circulars.

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, MUMBAI BENCHES, ‘J’ MUMBAI

Before: Shri Joginder Singh, & Shri Manoj Kumar Aggarwal

For Respondent: Shri V. K. Chaturvedi Sr.DR, Shri B.V. Jhaveri
Hearing: 16/08/2018

सुनवाई क� तार�ख / Date of Hearing: 16/08/2018 16/08/2018 आदेश क� तार�ख /Date of Order:

M/s Saurashtra Fuels Pvt Ltd. आदेश / O R D E R Per Joginder Singh(Judicial Member) The Revenue is aggrieved by the impugned order dated 23/12/2016 of the Ld. First Appellate Authority, Mumbai, deleting the penalty of Rs.19,39,180/-, imposed under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter the Act), without appreciating the fact.

2.

During hearing of this appeal, at the outset, Shri B.V. Jhaveri, ld. counsel for the assessee, pointed out that the tax effect in the present appeal, filed by the Revenue, is below prescribed monetary limit of Rs.20 lakh. The ld. DR, Shri V. K. Chaturvedi, though supported imposition of penalty but did not controvert the factual matrix to the effect that tax effect is below prescribed monetary limit.

2.1. We have considered the rival submissions and perused the material available on record. In view of the above, it is noted that the tax effect in the present appeal is below prescribed limit of Rs.20 lakh as prescribed, vide instruction/Circular No.3 of 2018, issued by CBDT (F No.279/Misc./142/ 2007-ITJ(PT) dated 11/07/2018. As per the circular, wherein, the Department was advised/directed

M/s Saurashtra Fuels Pvt Ltd. by the Board not to file appeal in the cases where the tax effect does not exceed the following monetary limit.:-

Sl. Appeals in Income –tax matters Monetary Limit (in Rs.) No. 1. Before ITAT 20,00,000/- 2. U/s 260 A before Hon’ble High 50,00,000/- Court 3. Before Hon’ble Supreme Court 1,00,00,000/-

In view of the above instruction, since, the tax effect is less than Rs.20,00,000/- (not controverted by Ld. DR also), consequently, the appeal of the Revenue is not maintainable, therefore, dismissed.

Finally, the appeal of the Revenue is dismissed.

This Order was pronounced in the open court in the presence of Ld. representatives from both sides at the conclusion of hearing on 16/08/2018.

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