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Income Tax Appellate Tribunal, DELHI BENCH “SMC-2” NEW DELHI
Before: SHRI S.V. MEHROTRA :
Date of hearing : 13/06/2016. Date of order : 14/06/2016. O R D E R This is revenue’s appeal against the order dated 19.2.2014, passed by the ld. CIT(A)-III, New Delhi in appeal no. 28/2012-13/CIT(A)-III, relating to AY 2005-06.
None put in appearance on behalf of the assessee at the hearing. We proceed to dispose of the appeal ex parte, qua the assessee and in that process we have heard ld. DR and perused the material available on record.
Sole effective ground raised is as under: “On the facts and in the circumstances of the case, the ld. CIT(A) has erred in cancelling the penalty of Rs. 3,50,425/- levied by the AO under section 271(1)(c) of the Income Tax Act, 1961.
2 ITA 2727/Del/2014 4. Ld. DR fairly submitted that, prima facie, the tax effect involved in the present appeal is less than Rs. 10 lakhs. Therefore, in terms of CBDT Circular No. 21/2015 dated 10.12.2015, stipulating that no departmental appeal, involving tax effect below Rs.10 lakhs, shall be filed before the ITAT and further that such instruction would apply retrospectively and the pending appeals below the specified tax limit of Rs.10 lakh may be withdrawn/not pressed, the department may be allowed to withdraw the appeal, provided that it should not be considered as a precedent in the subsequent years of the acceptance of issues involved in this appeal and, therefore, if in the subsequent year similar issue arises before the ITAT, where the appeal is above the tax limit, as prescribed in the Board’s Circular, the same should be decided on merits.
After considering rival submissions, the departmental appeal is treated as withdrawn in terms of Board’s Circular, referred to above.
In the result, revenue’s appeals stand dismissed, having been withdrawn. Order pronouncement in open court on 14/06/2016.