ITAT Bangalore Judgments — February 2016

The Tribunal dismissed the appeals filed by the Revenue. This was based on a CBDT circular revising monetary limits for appeals, which stipulated that appeals with a tax effect below Rs. 10 lakhs should not be pressed.

The Tribunal dismissed the appeals filed by the Revenue. This was based on a CBDT circular which set a monetary limit of Rs. 10 lakhs for filing appeals before the Tribunal, and the tax effect in these cases fell below this limit.

The Tribunal held that the notice issued under Section 274 r.w.s. 271(1)(c) was invalid because it did not specify whether the penalty was for concealment of income or furnishing inaccurate particulars. Following the jurisdictional High Court's decision, the penalty order was set aside.

The Tribunal held that the assessee had a reasonable cause for not complying with Section 269SS, considering the urgent need for funds and the fact that the loans were taken on a Sunday. Therefore, the penalty levied under Section 271D was quashed.