DCIT, NEW DELHI vs. M/S. RIO TINTO INDIA P. LTD., NEW DELHI

The revenue has questioned action of the Ld. CIT(A) in deleting the penalty of Rs. 3,81,930/- levied u/s 271(1)(c) of the Act.

At the outset of the hearing it was pointed out by the Ld. AR that though the assessee has got good case on merits after consideration of which the Ld. CIT(A) has deleted the penalty mainly on the basis that it cannot be levied on disallowances but the appeal is also not maintainable as having tax 2 Rio Tinto India P. Ltd. effect below Rs. 10,00,000/- as per the CBDT Circular no. 21/2015 dated 10.12.2015.

The Ld. Sr. DR on the other hand placed reliance on the penalty other.

Considering the above submission, we agree with the preliminary objection raised by the Ld. AR that the present appeal preferred by the revenue having the tax effect below Rs. 10,00,000/- is not maintainable as the same has been preferred by the revenue in violation of CBDT Circular no. 21/2015 dated 10.12.2015. This circular in our view is also having statutory force u/s 268(A) of the Income Tax Act, 1961 (for short ‘Act’). We thus, hold that the present appeal preferred by the revenue is not maintainable and the same is dismissed as such.

In the result appeal of the revenue is dismissed. (Order Pronounced in the Court on 24/02/2016).