SH. JCIT (TDS), DEHRADUN vs. EXECUTIVE ENGINEER, ELECTRICITY DISTRIBUTION DIVISION, UTTRAKHAND

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ITA 135/DEL/2013Status: DisposedITAT Delhi05 August 20163 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the departmental appeal was not maintainable as the tax effect was below the threshold stipulated by CBDT Circular No. 21/2015. Consequently, the assessee's cross-objection was also dismissed as infructuous.

What were the facts?

The Department appealed against the CIT(A)'s deletion of a penalty of Rs. 590,340/- imposed under Section 271C. The assessee argued that the appeal was not maintainable due to the tax effect being less than Rs. 10 lacs, as per CBDT Circular No. 21/2015.

What were the issues?

Whether the departmental appeal is maintainable when the tax effect is below the threshold specified by CBDT circulars. The applicability of CBDT Circular No. 21/2015 to pending appeals.

Which sections of the Income-tax Act were involved?

Section 271C,Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

Before: SHRI G.D. AGRAWAL & SHRI SUDHANSHU SRIVASTAVA

Hearing: 01.08.2016Pronounced: 05.08.2016

ORDER PER SUDHANSHU SRIVASTAVA, J.M.

This is an appeal by the department against the order dated 31.10.2012 passed by the Ld. CIT (A)-I, Dehradun for AY 2011-126, wherein the Ld. CIT (A) has deleted penalty of Rs. 590,340/- imposed u/s 271C of the Act.

2.

The ld. Counsel for the assessee stated that the tax effect in the departmental appeal is less than Rs. 10 lacs. It was submitted that in view of the CBDT’s latest circular no. 21/2015 dated 10/12/2015, the appeal was not maintainable.

3.

The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect in this appeal is less than Rs.10,00,000/-.

4.

From Clause 10 of the above circular it is clear that these instructions are applicable to the pending appeals also and there is clear cut instruction to the department to withdraw or not to press the appeals filed before the ITAT wherein tax effect is less than Rs.10,00,000/-. These instructions are operative retrospectively to the pending appeals also.

& CO No. 43/D/2013 Executive Engineer Page 2 of 3

5.

Keeping in view the CBDT Circular No.21 of 2015 dated 10.12.2015 and also the provisions of Section 268A of Income Tax Act, 1961, we are of the view that the Revenue’s appeal is liable to be dismissed.

6.

In view of the above, without going into merits of the case, we dismiss the appeal filed by the department. 7. In view of our dismissal of the Department’s appeal, the CO filed by the assessee has become in fructous and the same is also dismissed. 8. In the result, appeal of the department as well as the CO of the assessee, are dismissed.

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