INCOME TAX OFFICER 24(3)(1), MUMBAI vs. SHRI NAVIN G. HOTKAR, MUMBAI

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ITA 1700/MUM/2018Status: DisposedITAT Mumbai10 August 2018AY 2011-123 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 held that the appeal by the revenue was covered by the CBDT's low tax effect Circular No. 03/2018. The circular sets a monetary limit of Rs. 20 Lacs for appeals before the Appellate Tribunal.

What were the facts?

The Revenue appealed against the deletion of a penalty of Rs. 16.18 Lacs imposed under Section 271(1)(C) of the Income Tax Act. The penalty amount was below the prescribed monetary limit for appeals.

What were the issues?

Whether the revenue's appeal is maintainable given the low quantum of penalty and the applicability of the CBDT's low tax effect circular.

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, “F” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, JM & SHRI MANOJ KUMAR AGGARWAL, AM

आदेश / O R D E R

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by revenue for Assessment Year [AY] 2011- 12 contest the order of Ld. first appellate authority qua deletion of penalty u/s 271(1)(C) for Rs.16.18 Lacs. None has appeared for assessee. Therefore, left with no option, we proceed to dispose-off the ITA.No.1700/Mum/2018 Navin G.Hotkar Assessment Year-2011-12 same on the basis of material available on record and after hearing Ld. Departmental Representative [DR], Shri Rajeev K.Gubgotra.

2.

At the outset, it has been noticed that the quantum of penalty under dispute as agitated by revenue is less than prescribed limit of Rs.20 Lacs and the same is covered by recently issued low tax effect Circular No.03/2018 dated 11/07/2018 issued by Central Board of Direct Taxes [CBDT]. The Ld. DR, Shri.Rajiv K. Gubgotra, has controverted the same by submitting that necessary instructions / certificate, in this regard, would be required from higher authorities.

3.

We have gone through the circular and find that the quantum of penalty under dispute is below prescribed limit of Rs.20 Lacs and the assessee stood benefitted by the above circular issued by CBDT wherein the minimum monetary limit for filing the appeals before various appellate authorities have been fixed as under:- S. No. Appeals/ SLPs in Income-tax Monetary Limit (Rs.) matters 1 Before Appellate Tribunal 20.00,000 2 Before High Court 50.00,000 3 Before Supreme Court 1,00.00,000 The aforesaid limits, as per para 13 of the circular applies to pending appeals also. In view of the admitted position, we dismiss the revenue’s appeal.

4.

So far as the contentions raised by Ld. DR is concerned, we find that aforesaid circular does not envisage obtaining of any certificate from any authorities, in any manner. Nevertheless, the revenue is free to move appropriate application to recall this order, if at a later stage, it is ITA.No.1700/Mum/2018 Navin G.Hotkar Assessment Year-2011-12 found that the matter is covered by any exceptions provided in the aforesaid circular.

5.

The appeal stand dismissed. Order pronounced in the open court on 10th August, 2018.

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