ACIT, NEW DELHI vs. M/S. STARCON INDIA LTD., NEW DELHI

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ITA 4424/DEL/2012Status: DisposedITAT Delhi07 April 2017AY 2003-042 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 departmental appeal was not maintainable as it was filed in violation of the CBDT circular regarding the minimum tax effect for filing appeals. The Revenue's counsel did not press the appeal in light of the circular.

What were the facts?

The Revenue filed an appeal against the cancellation of a penalty imposed under Section 271(1)(c) of the Income Tax Act. The tax effect in the appeal was less than the mandatory limit of Rs. 10 Lacs prescribed by CBDT Circular No. 21/2015.

What were the issues?

Whether the departmental appeal is maintainable when the tax effect is below the prescribed monetary limit by the CBDT 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, DELHI BENCH: ‘G’ NEW DELHI

Before: SH. BHAVNESH SAINI & SH.L.P.SAHU

Hearing: 06.04.2017

PER BHAVNESH SAINI, JUDICIAL MEMBER This appeal by Revenue has been directed against the order of CIT(A)-XII, New Delhi dated 17.05.2012 for AY 2003-04, challenging the cancellation of penalty of Rs.7,67,927/- u/s 271(1)(c) of the I.T.Act, 1961.

2.

We have heard Ld. representatives of both the parties.

3.

The CBDT vide Circular No.21/2015 dated 10.12.2015 has decided that the appeal shall not be filed before the Appellate Tribunal in cases where the tax effect does not exceed mandatory limit of Rs.10 Lacs. The Circular would apply to all pending appeals as well. Admittedly in the department appeal, the tax effect is less than Rs.10 Lacs. Therefore, the departmental appeal is not maintainable as was filed in violation of above both circulars.

4.

Ld. DR in view of the above, did not press the department appeal. We may also note that the department would not fall in exception provided in the above Board Circular.

5.

In view of the above, the departmental appeal is dismissed. The order is pronounced in the open court on 07th of April, 2017.

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