The Commissioner of Income Tax-III vs. M/s Deccan Chronicle

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY ,THE SECOND DAY OF NOVEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V. BHASKAR REDDY INCoME TAX TRIBUNAL APPEAL NO: 30 OF 2006 Appeal Under Section 260 A of the lncome Tax Act 1961 aggrieved by the order dated 14-09-2005 in l.T.A.No.431lHydl2002 ( Asst. Year 1998-99 )on the file of the Court of the Income Tax Appellate Tribunal, Hyderabad Bench-A, Hyderabad preferred against the order of the Commissioner of lncome Tax (Appeals)-lV ,Hyderabad in Appeal No. 225lJC R-6/C|T(A)|V/2001-02, dated 28-03-2002 preferred against the order of the Joint Commissioner of lncome Tax , Range - 6 Hyderabad dated 30-08-2001 in GIR No. D-302 /SR -3 Between: The Commissioner of lncome Tax-lll, Hyderabad ...APPELLANT AND l\rlls Deccan Chronicle, 6-3-898, Somajiguda, Hyderabad ...RESPONDENT Counsel for the Appellant: SRl. B. NARASIMHA SARMA Counsel for the Respondents: None appeared The Court made the following: JUDGMENT I

THE HO]['BLE THE CHIEF JUSTICE UJJA:, ,BHUYAN AND TIIE HC N'BLE SRI JUSTICE C.V.BHASKA FI RE;DDY I.T.T.A. No.30 of 2006 JUDGMENT: (Per the Hon'ble the Cltief Justice IJjjal Bhuya,tt Heard IVir. B.Narasimhra Sarma, leurrL,:,1 Standing Counsel, Inc, >me Tax Department for the appellartr. 2. T,ris appeal has been preferred by tl.r: Revenue as the appellant under Section 26AA of the Income 1';rx r\ct, 196 I (briefly refer:ed to hereinafter as the Act'), assailing the legality and ''alidity of the order dated 14.09.2C0.1 passed by the Income lax Appellate Tribunal, Hyderabe_d Bench A', Hyderabad Tribunal) in I.T.A.No.43l/Hyd/2CtO2 for the assessment y ear 1998,99. 3. Tl Le appeal arises out of levy of penalty under Section 27l(l)(cl of the Act. In the appeal, ttLe following question has been proposed as substantial question of law: "On tht facts and in the circumstances of tt t: case, whether the findings of the Tribunal that the in€rccur.lte particul us relating to depreciation schedule furnisbed by i ,

- HCJ & CVBRJ 1.7-.T.A.No.3O of 2O06 the Assessee are not intentional and it is a clerical mistake in nature and its consequential order cancelling the penalty levied u/s.271 (1)(C) of Income Tax Act is sustainable in law?" 4. On 02.02.2006, the appeal was admitted for hearing. 5. Mr. Sarma, learned counsel for the appellant fairly submits that the disputed,penalty would be below Rs.50 lakhs. 6. In the hearing today, we have perused the assessment order dated 28.O3,2OO2. We find therefrom that the taxable income of the respondent was determined at Rs.85,00,480.00 and the penalty to be paid was quantified at Rs.21,78,514.00. 7. Central Board of Direct Taxes (CBDT) has issued Circular No.17 of 2019, dated 08.08.2019, amending the previous Circular No.3 of 2018, dated ll.O7.2Ol8, by further enhancing the monetar5r limits for filing appeals by the Income Tax Department before the Income Tax Appellate 2

,7C-' & CVBRJ I.T.T. A.No..)O of 2006 Tribunals, Hi3h Courts and Supreme Court as z ::nezrsure for reducing litig ation. In paragraph 2 of tht., saitl cirt:uiar we find that the monetary limit fixed for filing an .rp,perrl before the High Cou 't is Rs. 1.O0 crore B. In the instant appeal, quantum c I penalty 1S Rs.21,78,514 00, which is well below the moneta:y linrit. 9. Tl- erelbre, the appeal filed by the Deoar:ment is dismissed in terms ol the aforesaid Circular Nr, I 7 :f 2O 19, dated 08.08.110 i9. However, if the appeal com,:s, within the exception un ler paragraph 10 of Circular No.l! of 2018, it would be ope 1 to the Income Tax Department to :iee.< revival of the appeal. 10. Mjscellaneous applications pending, i{ arLy, shall stand closed. However, there shall be no or<ler ari r:o costs. Sd/-B S.CHIRANJEEVI JOINT ITEGISTRAR I/TRUE COPY// (t ',) SECTION OFFICER Toi. Th" ln"orne lax Appellate Tribunal, Hyderabad B'lnch - A, Hyderabad. z. i6e Commissioner of lncome Tax ( Appeals ) lV , l{'lderabad' 5. rii" Joint c< mmissioner of lncome Tax, Range-6, Hy^derabad' a. on" cc t" sR . B. NARASIMHA SARMA' sc for lncome T€x loPucl 5. Two CD CoPie ; I t I I I I \

\ \ HIGH COURT DATED:0211112022 JUDGMENT ITTA.No.30 of 2006 DISMISSIN ] THE ITTA WITHOLTT SOSTS .4===:r ,i,-y\E sTAl 7 q lk 1 5 r''rg zt?l IJo \ov \ 1 I