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

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ITA 6608/DEL/2013Status: DisposedITAT Delhi24 February 2016AY 2007-083 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 agreed with the assessee's preliminary objection. It held that the appeal was not maintainable as it violated the CBDT Circular No. 21/2015 regarding appeals with a tax effect below Rs. 10,00,000.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of a penalty levied under Section 271(1)(c). The assessee argued that the appeal was not maintainable due to a low tax effect, citing a CBDT circular.

What were the issues?

The primary issue was the maintainability of the Revenue's appeal based on the tax effect and CBDT circulars. The merits of the penalty deletion were not adjudicated.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: Shri I.C.Sudhir & Shri L.P.Sahu

For Appellant: Shri Sandeep Karhail, Adv
Hearing: 24/02/2016Pronounced: 24/02/2016

This appeal filed by the revenue is directed against order of Ld. CIT(A)-XVIII, New Delhi dated 23.09.2013 and pertains to assessment year 2007-08.

2.

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.

3.

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.

4.

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

5.

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.

6.

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

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