ITO 4(3)(2), MUMBAI vs. KHANDWALA SECURITIES LTD, MUMBAI

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ITA 2393/MUM/2013Status: DisposedITAT Mumbai28 July 2016AY 2004-052 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 dismissed the Revenue's appeal in limine. This was based on the CBDT Circular No. 21/2015, which precludes the Revenue from pursuing appeals with a tax effect below Rs. 10 lakhs, and the issue not falling under any exceptions.

What were the facts?

The Revenue filed an appeal against the deletion of a penalty by the CIT(A). The tax effect involved in the appeal was less than Rs. 10 lakhs.

What were the issues?

Whether the Revenue's appeal is maintainable given the low tax effect, as per CBDT circulars.

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, “A” Bench, Mumbai

Before: Shri B.R. Baskaran (AM)& Shri Amit Shukla (JM)

For Respondent: Shri A. Ramachandran
Hearing: 28.7.2016Pronounced: 28.7.2016

The appeal filed by the Revenue is directed against the order dated 30.1.2012 passed by learned CIT(A)- 8, Mumbai and it relates to A.Y. 2004-05.

2.

The Revenue is aggrieved by the decision of learned CIT(A) in deleting the penalty of ` 6,59,543/- levied by the Assessing Officer u/s. 271(1)(c) of the Act.

3.

None appeared on behalf of the assessee. Learned DR fairly admitted that the tax effect involved in this appeal is less than ` 10 lakhs.

4.

We have heard learned Departmental Representative and perused the record. We noticed that the tax effect involved in this appeal is less than ` 10 lakhs. Hence, the Revenue is precluded from pursuing this appeal as per the Circular No. 21/2015 dated 10.12.2015 issued by the CBDT. We also noticed that the issue contested in this appeal is not covered by the exception provided in para 8 of the Circular (supra).

5.

In view of the above, we dismiss the appeal of the Revenue in limine.

6.

In the result, appeal filed by the Revenue is dismissed.

Order has been pronounced in the Court on 1.8.2016

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