DCIT, NEW DELHI vs. M/S. NKG INFRASTRUCTURE LTD., NEW DELHI

PDF · subscribers
ITA 2727/DEL/2014Status: DisposedITAT Delhi14 June 2016AY 2005-062 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 allowed the Revenue to withdraw the appeal based on CBDT Circular No. 21/2015, which mandates not pressing appeals with a tax effect below Rs. 10 lakhs. The withdrawal was not to be considered a precedent for future years.

What were the facts?

The Revenue filed an appeal against the CIT(A)'s order cancelling a penalty levied under Section 271(1)(c). The tax effect involved in the appeal was less than Rs. 10 lakhs.

What were the issues?

Whether the Revenue's appeal, with a tax effect below the threshold specified in the CBDT circular, should be withdrawn or pressed.

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 “SMC-2” NEW DELHI

Before: SHRI S.V. MEHROTRA :

For Appellant: Shri N.J. Singh Sr. DR
Hearing: 13/06/2016

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.

2.

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.

3.

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such instruction would apply retrospectively and the pending appeals below the specified tax limit of Rs.10 lakh may be withdrawn/not pressed, the department may be allowed to withdraw the appeal, provided that it should not be considered as a precedent in the subsequent years of the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.

5.

After considering rival submissions, the departmental appeal is treated as withdrawn in terms of Board’s Circular, referred to above.

6.

In the result, revenue’s appeals stand dismissed, having been withdrawn. Order pronouncement in open court on 14/06/2016.

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →