Indian Kanoon - Search engine for Indian Law

Income Tax Appellate Tribunal - Ahmedabad

The Dcit, Circle-4(1)(14), Ahmedabad vs Shri Sanjaykumar Haribhai Patel , ... on 6 August, 2020

          आयकर अपील य अ धकरण, अहमदाबाद  यायपीठ, अहमदाबाद ।
          IN THE INCOME TAX APPELLATE TRIBUNAL
                  "D" BENCH, AHMEDABAD
                   [Through Virtual Court]

       BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT
                         AND
       SHRI WASEEM AHMED, ACCOUNTANT MEMBER

                     ITA.No.1927/Ahd/2019
                   नधा रण वष /Asstt.Year : 2014-15
  DCIT, Cir.4(1)(1)              Vs. Shri Sanjaykumar Haribhai Patel
  Ahmedabad.                               401, Shubham Complex
                                           Opp: Navrangpura Derasar
                                           Navrangpura
                                           PAN : ALQPP 3785 L
         अपीलाथ / (Appellant)                      यथ / (Respondent)

    Revenue by           :                Shri Dileepkumar, Sr.DR
    Assessee by          :                None
         सन
          ु वाई क तार ख/ Date  of Hearing      :      06/08/2020
         घोषणा क तार ख   / Date of Pronouncement:     06/08/2020
                                आदे श/O   RDER

PER WASEEM AHMED, ACCOUNTANT MEMBER:

This is Revenue's directed against order of the ld.CIT(A)-8, dated 24.10.2019 passed for the Asstt.Year 2014-15.

2. In this appeal, the grievance of the Revenue is that the ld.CIT(A) has erred in deleting penalty of Rs.38.00 lakhs under section 271D of the Income Tax Act, 1961.

3. When the Bench enquired the AO, whether its appeal is hit by recent CBDT Circular No.17 of 2019 dated 8.8.2019, whereby Department has been instructed not to file appeal before the Tribunal where tax effect or quantum of penalty is below Rs.50 lakhs, the ld.DR did not dispute applicability of the recent CBDT circular and left to the Tribunal to pass appropriate order in the matter.

4. After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that quantum of penalty is more than Rs.50 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed.

However, it is observed that in case on re-verification at the end of the AO it can be demonstrated that the tax effect and/or quantum of penalty is more, or Revenue's case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect.

5. In the result, appeal of the Revenue is dismissed due to low tax effect.

Order pronounced in the Court on 6th August, 2020 at Ahmedabad.

     Sd/-                                                  Sd/-
(RAJPAL YADAV)                                        (WASEEM AHMED)
VICE-PRESIDENT                                     ACCOUNTANT MEMBER