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Income Tax Appellate Tribunal, MUMBAI BENCHES “E”, MUMBAI
Before: SHRI B.R.BASKARAN (AM) & SHRI RAM LAL NEGI (JM)
This appeal has been filed by the revenue against order dated 27/01/2012 passed by the Ld CIT(Appeals)-16, Mumbai for the assessment year 2006-07.
The revenue has challenged the impugned order on following effective grounds:-
"On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in deleting the penalty of Rs. 3,42,387/- imposed u/s 271(1)(c) of the I.T. Act.”
2. On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in deleting the penalty imposed u/s 271(1)(c) of the I.T. Act in respect of Sundry Balance written off by the assessee amounting to Rs. 10,17,198/- without appreciating the fact that the assessee had failed to prove the allowability of the impugned deduction u/s 36(1)(vii) r.w.s.36(2) of the Act.”
3. On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in deleting the penalty imposed u/s 271(1)(c) of the I.T. Act in respect of Sundry Balance written off by the assessee amounting to Rs. 10,17,198/- without appreciating the fact that the basic condition laid down u/s 36(2) had not been fulfilled by the assessee and therefore, the assessee was not eligible for deduction u/s 36(1)(vii) of the Act.”
At the outset, the Ld. Counsel for the assessee submitted that the tax effect in this case is below Rs.10,00,000/- and as per the CBDT Circular No. 21 of 2015, dated 10/12/2015, the present appeal is not maintainable.
The Ld. DR fairly admitted that the tax effect in department’s appeal is below Rs.10 Lakhs, we find that the issue raised in appeal does not fall under any of the exceptions specified in para 8 of the Circular. Since, it has been specifically clarified in the Circular aforesaid that the instruction will apply retrospectively to all the pending appeals; the present appeal filed by the revenue is not maintainable. We, therefore, dismiss the same in limine.