DCIT, New Delhi V. M/s. Saini Herbs Pvt. Ltd., New Delhi

ITA 4920/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8087 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 1994-1995
• Appeal Filed On: 31-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURABHI AHULWALIA
• Keywords: Tax effect

Judgement Text

I.T.A. NO.4920 /DEL/09 1/2 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G NEW DELHI) BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO.4920 /DEL/2009 ASSESSMENT YEAR : 1994-95 DCIT, M/S SAINI HERBS (P) LTD., CIRCLE-7(1), GF-17, HANS BHAWAN, NEW DELHI. V. WING-II, BAHADURSHAH ZAFAR MARG, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. SURABHI AHULWALIA, SR. DR. RESPONDENT BY : SHRI NONE. ORDER PER A.K. GARODIA, AM: THIS IS REVENUE'S APPEAL DIRECTED AGAINST THE ORDER OF LD CIT(A)-X, NEW DELHI DATED 6.10.2009 FOR ASSESSMENT YEAR 1994-95. 2. THE GROUND RAISED BY THE REVENUE READS AS UNDER: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD CIT(A) HAS ERRED IN REDUCING THE QUANTUM OF PENALTY IMPOSE D BY THE ASSESSING OFFICER U/S 271(1)( C) OF THE INCOME TAX ACT, 1961 FROM RS.5,31,973/- TO RS.3,76,592/- 3. AT THE VERY OUT SET, IT WAS POINTED OUT BY THE B ENCH THAT IN THE PRESENT CASE, THE TAX EFFECT OF THE DISPUTE IS BELOW RS. 2 LAKHS AND HENCE THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW OF THE BOAR DS CIRCULAR. IN THIS REGARD, THE BENCH POINTED OUT TO THE LD DR OF THE REVENUE THAT AS PER THE JUDGMENT OF THE . I.T.A. NO.4920/DEL/09 2/2 HON'BLE BOMBAY HIGH COURT RENDERED IN THE CASE OF C IT V. ZOEB Y. TOPIWALA REPORTED AS 284 ITR 379, THIS ISSUE IS COVERED AGA INST THE REVENUE. 4. THE LD DR OF THE REVENUE HAD NOTHING TO SAY. 5. WE HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD . WE FIND THAT THE TAX EFFECT IN THE PRESENT CASE IS BELOW RS.2 LAKH SINCE THE PENALTY DELED BY LD CIT(A) IS ONLY RS.1,55,321/- (RS.5,31,973/- - RS.3,76,592/ -). AS PER THE INSTRUCTION NO. 1979 OF THE CBDT DATED 27.3.2000, THE DEPARTMENT SH OULD NOT RAISE THE DISPUTE BEFORE THE TRIBUNAL IF THE TAX EFFECT OF THE DISPUT E IS BELOW RS. 2 LAKH. IT WAS HELD BY THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V. ZOEB Y. TOPIWALA (SUPRA) THAT THE BOARDS CIRCULAR IS BINDING ON THE REVENUE. UNDER THESE CIRCUMSTANCES, WE HOLD THAT THIS APPEAL OF REVENUE IS NOT MAINTAINABLE IN VIEW OF THE BOARDS CIRCULAR AND THE JUDGMENT OF THE HON'BL E BOMBAY HIGH COURT. THEREFORE, WE DISMISS THIS APPEAL OF THE REVENUE AS NOT MAINTAINABLE. 6. IN THE RESULT, THIS APPEAL OF THE REVENUE STANDS DISMISSED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE O F HEARING I.E. 2.3.2010. SD/- SD/- (GEORGE MATHAN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 02.3.2010. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY. BY ORDER (ITAT, NEW DELHI).