ACIT 17(3), MUMBAI vs. REGAL SHOES, MUMBAI

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ITA 1654/MUM/2013Status: DisposedITAT Mumbai29 February 2016AY 2011-123 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 appeal filed by the Revenue. This was based on the CBDT Circular No. 21 of 2015, which sets a monetary limit of Rs. 10 lakhs for filing appeals before the ITAT.

What were the facts?

The Revenue filed an appeal against the CIT(Appeals) order deleting a penalty of Rs. 10,00,000/-. The penalty was levied for failure to pay tax on the basis of the return filed.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the monetary limit prescribed by CBDT circulars. The penalty was levied for non-payment of self-assessment tax.

Which sections of the Income-tax Act were involved?

Section 221(1),Section 140A(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “D”, MUMBAI

Before: SHRI B.R.BASKARAN (AM) & SHRI RAM LAL NEGI (JM)

For Appellant: Shri. B.S.Bist
Hearing: 29/02/2016Pronounced: 29/02/2016

This appeal has been filed by the Revenue against impugned order dated 17/12/2012 passed by the CIT(Appeals)-29, Mumbai for the assessment year 2011-12, on the following grounds:-

1. On the facts and circumstances and in law, the learned. CIT(A) in deleting the penalty of Rs. 10,00,000/- u/s 221(1) without taking into account that assessee had failed to pay the amount of tax on the basis of return and was in accordance with the provisions of sec 140A(3) deemed to be an assessee in default in respect of unpaid tax .

2. On the facts and circumstances and in law, the Ld. CIT(A) has erred in applying the ratio of decision in the case of CIT vs. Bhikaji Ramchandra 183 ITR page 478(Bom) without appreciating the fact that in the said case the penalty was levied on non-payment of self assessment tax which is much later stage on the filling of return of income.

2.

At the outset, the Ld. DR pointed out that the tax involved in this case does not exceed Rs. 10,00,000/-. As per the latest CBDT Circular No. 21 of 2015, dated 10th December, 2015, new guidelines of monetary limit for filing of appeals by the Department has been issued, whereby the tax effect for filing of appeal before the ITAT has been prescribed as amount exceeding Rs. 10 lakhs. In the said Circular, it has been specifically clarified that the said instruction will apply retrospectively to all the pending appeals. Accordingly, the appeal filed by the revenue is not maintainable and is dismissed in limine.

Order pronounced in the open court on 29th February, 2016

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