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103 orders · Page 3 of 3
The Tribunal dismissed the Revenue's appeal as not maintainable. This was based on a CBDT circular which mandates that departmental appeals before the ITAT should not be filed or pressed if the tax effect does not exceed Rs. 20 lacs.
The Tribunal held that since the assessee disclosed all relevant facts and the disallowance was due to a technical reason under Section 43B and not due to concealment or inaccurate particulars, the penalty was unjustified. The Tribunal followed the Supreme Court decision in CIT vs. Reliance Petro Products Pvt. Ltd.
The Tribunal noted that the tax effect in the appeal did not exceed the revised monetary limit of Rs. 50,00,000/- for filing appeals by the department. Therefore, the appeal was not maintainable.