DCIT, New Delhi V. M/s. NKG Infrastructure Ltd., New Delhi

ITA 2727/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7316 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 2
• Next Hearing Date: 13-06-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 02-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N J SINGH
• Keywords: Tax effect

Judgement Text

1 ITA 2727/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-2 NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER ITA NS. 2727/DEL/2014 ASSTT. YR: 2005-06 DCIT, CENTRAL CIRCLE-18, VS. M/S NKG INFRASTRUCTUR E LTD., NEW DELHI. 124, GROUND FLOOR, WORLD TRADE CENTER, CONNAUGHT PLACE, NEW DELHI. PAN: AAACN 4109 N ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI N.J. SINGH SR. DR RESPONDENT BY : NONE DATE OF HEARING : 13/06/2016. DATE OF ORDER : 14/06/2016. O R D E R THIS IS REVENUES APPEAL AGAINST THE ORDER DATED 19.2.2014, PASSED BY THE LD. CIT(A)-III, NEW DELHI IN APPEAL NO. 28/2 012-13/CIT(A)-III, RELATING TO AY 2005-06. 2. NONE PUT IN APPEARANCE ON BEHALF OF THE ASSESSEE AT THE HEARING. WE PROCEED TO DISPOSE OF THE APPEAL EX PARTE, QUA THE ASSESSEE AND IN THAT PROCESS WE HAVE HEARD LD. DR AND PERUSED THE MATERI AL AVAILABLE ON RECORD. 3. SOLE EFFECTIVE GROUND RAISED IS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN CANCELLING THE PENALTY OF RS. 3 ,50,425/- LEVIED BY THE AO UNDER SECTION 271(1)(C) OF THE INC OME TAX ACT, 1961. 2 ITA 2727/DEL/2014 4. LD. DR FAIRLY SUBMITTED THAT, PRIMA FACIE, THE T AX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN RS. 10 LAKHS. THERE FORE, IN TERMS OF CBDT CIRCULAR NO. 21/2015 DATED 10.12.2015, STIPULATING THAT NO DEPARTMENTAL APPEAL, INVOLVING TAX EFFECT BELOW RS.10 LAKHS, SH ALL BE FILED BEFORE THE ITAT AND FURTHER THAT SUCH INSTRUCTION WOULD APPLY RETROSPECTIVELY AND THE PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT OF RS .10 LAKH MAY BE WITHDRAWN/NOT PRESSED, THE DEPARTMENT MAY BE ALLOWE D TO WITHDRAW THE APPEAL, PROVIDED THAT IT SHOULD NOT BE CONSIDERED A S A PRECEDENT IN THE SUBSEQUENT YEARS OF THE ACCEPTANCE OF ISSUES INVOLV ED IN THIS APPEAL AND, THEREFORE, IF IN THE SUBSEQUENT YEAR SIMILAR ISSUE ARISES BEFORE THE ITAT, WHERE THE APPEAL IS ABOVE THE TAX LIMIT, AS PRESCRI BED IN THE BOARDS CIRCULAR, THE SAME SHOULD BE DECIDED ON MERITS. 5. AFTER CONSIDERING RIVAL SUBMISSIONS, THE DEPAR TMENTAL APPEAL IS TREATED AS WITHDRAWN IN TERMS OF BOARDS CIRCULAR, REFERRED TO ABOVE. 6. IN THE RESULT, REVENUES APPEALS STAND DISMISSED , HAVING BEEN WITHDRAWN. ORDER PRONOUNCEMENT IN OPEN COURT ON 14/06/2016. SD/- (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 14/06/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.