DCIT, CIRCLE - 19(1), NEW DELHI V. PRANAV VIKAS INDIA PVT. LTD., DELHI

ITA 3087/DEL/2024

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax against the order of the Commissioner of Income Tax (Appeals), which had reduced the penalty levied on the assessee, Pranav Vikas India P. Ltd., from 200% to 100% of the tax payable under section 270A of the Income Tax Act, 1961. The Tribunal admitted the appeal for hearing but ultimately dismissed it due to the low tax effect and the fact that the penalty had already been deleted in a prior ruling on a related appeal by the same assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29184 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2018-2019
• Other Referred Cases: ITA No. 1218/Del/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Assessee Lawyers: V RAJAKUMAR
• Keywords: Tax effect

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “एफ”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं डॉ मीठा लाल मीना, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & DR. MITHA LAL MEENA, ACCOUNTANT MEMBER आअसं.3087/िदʟी/2024(िन.व. 2018-19) ITA No .3087/DEL/2024 (A.Y.2018-19) Deputy Commissioner of Income Tax, R. No. 221, 2nd Floor, C.R Building, I.P Estate, New Delhi 110002 ...... अपीलाथᱮ/Appellant बनाम Vs. Pranav Vikas India P. Ltd., 57, Rama Road, Karam Pura, West Delhi, Karma Pura S.O, Delhi 110015 PAN: AAACP-1537-C ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Ms. Harpreet Kaur Hansra, SR.DR ŮितवादीȪारा/Respondent by : Shri V Rajakumar, Advocate सुनवाई कᳱ ितिथ/ Date of hearing : 07/01/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 07/01/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 26.02.2024, for assessment year 2018-19. 2. The appeal is time barred by 61 days. The Department has filed an application seeking condonation of delay. The ld. Counsel for the assessee has 2 ITA NO.3087/DEL/2024 (A.Y.2018-19) raised no objection in condoning delay in filing of appeal. After examination of said application we are satisfied that the delay in filing of appeal is unintentional and for bonafide reasons. Hence, delay of 61 days in filing of appeal is condoned and the appeal is admitted for hearing on merits. 3. Shri Shri V Rajakumar, appearing on behalf of the assessee submits at the outset that this appeal by the Revenue suffers from low tax effect. Referring to Form no. 36 he pointed that tax effect in appeal is Rs.54,69,000/- i.e. far less than the monetary limit specified by the Board vide Circular No. 09/2024 dated 17.09.2024 for filing of appeal by the Department before the Tribunal. 3.1. He further submitted that the Assessing Officer (AO) vide order dated 12.02.2022 had levied penalty u/s. 270A of the Income of Tax Act, 1961(hereinafter referred to as ‘the Act’) of 200% of tax payable. The assessee carried issue in appeal before the CIT(A). The CIT(A) vide order dated 26.02.2024 reduced penalty to 100%. Against the said order of CIT(A), the assessee carried the issue before Tribunal in ITA No. 1218/Del/2024. The Tribunal vide order dated 07.08.2024 deleted the penalty and allowed appeal of the assessee. Hence, on merits as well appeal of the Revenue is liable to be dismissed. 3. Ms. Harpreet Kaur Hansra, representing the department vehemently defended the impugned order. However, the ld. DR fairly stated that as per Form No. 36 tax effect involved in appeal is less than the monetary limit specified by the Board vide Circular No. 9/2024 (supra). As regards the decision of Tribunal in assessee’s appeal in ITA No. 1218/Del/2024, she submits that she needs to seek report from the AO as she is unaware about the said appeal of the assessee. 3 ITA NO.3087/DEL/2024 (A.Y.2018-19) 4. Both sides heard. The Revenue is in appeal against the findings of CIT(A) in restricting penalty levied u/s. 270A of the Act to 100% of the tax payable. A perusal of Form No. 36 shows that tax effect involved in appeal is Rs.54,69,000/-. The Board vide Circular No.9/2024 (supra) has enhanced monetary limit for filing of appeal before the Tribunal to Rs.60,00,000/-. Thus, in light of aforesaid Board Circular, appeal of the Revenue is liable to be dismissed on account of low tax effect. 5. It is further observed that the Tribunal in appeal by the assessee in ITA No. 1218/Del/2024 decided on 07.08.2024 has deleted penalty levied u/s. 270A of the Act. Once penalty has been deleted in toto by the Coordinate Bench on merits, appeal of the Revenue fails. 6. In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on Tuesday the 07th day of January, 2025. Sd/- Sd/- (DR. MITHA LAL MEENA) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 07/01/2025 NV/- 4 ITA NO.3087/DEL/2024 (A.Y.2018-19) ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "