The DCIT, Circle-1, Surat V. Neo Structo Construction Ltd., Surat

ITA 2316/AHD/2011

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 2568 (ITAT-SURAT)
• Duration Of Justice: 10 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-12-2021
• Assessment Year: 2006-2007
• Appeal Filed On: 12-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPMA SINGLA
• Keywords: Tax effect
• Section: 271(1)(c); 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA No. 2316/AHD/2011 (AY 2006-07) (Hearing in Virtual Court) Dy. Commissioner of Income- tax Circle-1, Room No. 108, Aayakar Bhavan, Majura Gate, Surat-395001 Vs M/s Neo Structo Construction Ltd., A/1 to A/4, Narayan Park, Ichhapore, Surat-395510 PAN : AAACN 7717 N Appellant / Revenue Respondent / assessee Assessee by None Revenue by Mrs.Anupma Singla,Sr-DR Date of hearing 27.12.2021 Date of pronouncement 27.12.2021 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by Revenue is directed against the order of ld. Commissioner of Income tax (Appeals)-1, Suratdated 20.06.2011, which in turn arises out of penalty levied under section 271(1)(c) of the income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 17.03.2011for assessment year (AY) 2006-07. The Revenue has raised the following grounds of appeal:- “[1]. On the facts and circumstances of the case and in law, the Ld. CIT(A)-1, Surat has erred in deleting the penalty imposed u/s 271(1)(c) of the I.T. Act of Rs.23,81,576/- despite the fact that the expenses claimed by the assessee were not allowable under section 37(1) of the I.T. Act. However, assessee deliberately claimed the expenses with a conscious view to reduce the Income-Tax liability. Further, despite giving an opportunity, the assessee failed to offer an explanation for furnishing inaccurate particulars of income.” ITA No.2316/AHD/2011 M/s Neo Structo Construction Ltd. 2 2. None appeared on behalf of assessee despite service of notice through registered post with acknowledgement ‘RPAD’. Perusal of grounds of appeal reveals that the tax effect involved in the present appeal is less than Rs.50 lakh fixed for filing appeal by revenue before Income tax Appellate Tribunal, by Central Board of Direct Tax (‘CBDT’ for short) in its Circular No.17/2019 dated 08.08.2019. Accordingly, the appeal of Revenue is not maintainable. This fact was confronted with Ld. Senior Departmental Representative (DR) for the Revenue. The Ld. Sr DR for the revenue submits that prima facie it seems that the tax effect involved in the present appeal is less than monetary limit of Rs.50 lakh for filing an appeal before Tribunal as determined by CBDT. However, the Revenue may be given liberty to move appropriate miscellaneous application (MA) in case at later stage, if it is discovered that tax effect involved in the present appeal is more than monetary limit of Rs.50 lakh tax effect for filing appeal before Tribunal, or grounds of appeal raised by revenue is covered of any exceptional clause of other CBDT’s Circulars. 3. We have heard the submissions of Ld. Senior DR for the Revenue and perused the order of lower authorities. We find that the Revenue has filed present appeal against the penalty levied of Rs.23,81,576/- apparently the tax effect involved in the present appeal is less than the monetary limit of Rs.50 lakh, fixed by CBDT in its Circular No.19/2019 for filing appeal before Tribunal. Hence, the appeal ITA No.2316/AHD/2011 M/s Neo Structo Construction Ltd. 3 of Revenue is dismissed as not maintainable. However, the Revenue is given liberty to move appropriate application if at later stage if it is discovered by tax effect in the present appeal is more than monetary limit of Rs.50 lakh, or the ground of appeal raised by Revenue is covered by any exceptional clause of other Circular of CBDT. 4. In the result, the appeal of the Revenue is dismissed. Order pronounced in open court on 27/12/2021at the time of haring in virtual court. Sd/- Sd/- (Dr ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 27/12/2021 Dkp. Out Sourcing P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order // True Copy // Assistant Registrar, ITAT, Surat True copy/