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Facts
The Revenue filed an appeal against the deletion of penalty under section 270A by the CIT(A)/NFAC. The Revenue was aggrieved by the deletion of a penalty of Rs. 52,93,844/-.
Held
The Tribunal noted that both parties agreed that the tax effect on the disputed penalty was less than Rs. 60,00,000/-, which is the monetary limit prescribed by the CBDT for filing appeals. Therefore, the appeal was dismissed in limine due to low tax effect.
Key Issues
Whether the appeal filed by the Revenue should be dismissed in limine on account of low tax effect, as per CBDT Circular No.09/2024.
Sections Cited
270A
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Income Tax Appellate Tribunal, ‘C’ BENCH MUMBAI
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the Revenue against order dated 19/02/2024 passed by CIT(A) / NFAC, Delhi in relation to the penalty proceedings u/s.270A. 2. The Revenue is merely aggrieved by deletion of penalty of Rs.52,93,844/- levied u/s.270A.
Infinite Computer Solutions (India) Limited 3. At the outset, both the parties have agreed that the tax effect on the disputed penalty is less than Rs.60,00,000/- which is a monetary limit prescribed by the CBDT vide Circular No.09/2024 dated 17/09/2024 for filing of the appeal, wherein the limit prescribed for filing of appeal by the department before the Tribunal has been capped at Rs.60,00,000/-. Admittedly here in this case the tax effect is less than Rs.60,00,000/- and accordingly, the appeal of the Revenue is dismissed in limine on account of low tax effect.
In the result, appeal of the Revenue is dismissed.
Order pronounced on 31st December, 2024.