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Income Tax Appellate Tribunal, DELHI BENCH ‘E’ : NEW DELHI
Before: SHRI KULDIP SINGH & SHRI PRASHANT MAHARISHI
(PAN : AABCN3209L) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri V.K. Tulsiyan, CA REVENUE BY : Shri Rajesh Kumar, Senior DR Date of Hearing : 24.01.2017 Date of Order : 27.01.2017 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER :
The Appellant, Deputy Commissioner of Income-tax, Circle 13 (1), New Delhi (hereinafter referred to as ‘the Revenue’) by filing the present appeal sought to set aside the impugned order dated 07.02.2014 passed by the Commissioner of Income-tax (Appeals)-XVI, Delhi qua the assessment year 2007-08.
Bare perusal of the penalty order dated 15.02.2012 passed by the Assessing Officer, imposing penalty of Rs.6,54,432/- on account of furnishing inaccurate particulars of income to the tune of Rs.25,98,675/- (Rs.19,44,243/- the amount of furnished inaccurate particulars of income + Rs.6,54,432/- on account of tax on ceiling income) shows that the penalty of Rs.6,54,432/- has been imposed on the amount of Rs.25,98,675/- which falls in the category of low tax effect.
Perusal of the aforesaid appeal filed by the Revenue apparently show that the same is having low tax effect as per CBDT Circular No.21/2015 dated 10th December, 2015 vide which the Revenue has been directed not to prefer any appeal in case the tax effect is less than Rs.10,00,000/- and this factual position has been fairly conceded by the Ld. D.R.
We have heard ld. Senior DR on the issue in controversy and perused the material on record. Perusal of CBDT Circular (supra) shows that monetary limit for filing the appeal by the Department before the Tribunal, Hon'ble High Court and Hon'ble Supreme Court has been revised and the relevant portion of the aforesaid circular is extracted as under:
"3. Henceforth, appeals/SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:
S.No. Appeals in Income- Monetary tax matters Limit (Rs.) 1 Before Appellate 10,00,000 Tribunal 2 Before High Court 20,00,000 3 Before Supreme 25,00,000 Court
It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.
This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits in para 3 above may be withdrawn / not pressed. Appeals before the Supreme Court will be governed by the instructions on this subject, operative at the time when such appeal was filed."
The contention of Ld. Senior D.R. that he needs some time to procure the report from the Assessing Officer to work out the tax effect, is not tenable because when apparently, the appeal in question is covered under CBDT Circular No.21/2015 dated 10th December, 2015 (supra), the Revenue cannot import the facts within the knowledge of the Assessing Officer to further prolong the matter. However, in case any fact which is otherwise not on record, warrants the restoration of the present appeal, the Revenue is at liberty to approach the Tribunal under relevant provisions of law.
In view of the CBDT Circular No.21 dated 10.12.2015 having retrospective effect and what has been discussed above, we are of the considered view that the aforesaid appeal is not maintainable because of low tax effect i.e. less than Rs.10,00,000/- and without going into the merits of the impugned order passed by ld. CIT (A), hence, the aforesaid appeal filed by the Revenue is hereby dismissed having been become infructuous. Order pronounced in open court on this 27th day of January, 2017.