DCIT CC-33, MUMBAI V. SUNIL V. SANGOI,

ITA 618/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54895 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 28-07-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 25-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJIV DUTT
• Keywords: Tax effect
• Section: 271D

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I, MUMBAI BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER & SHRI VIJAY PAL RAO, JUDICIAL MEMBER. I.T.A. NO. 618/MUM/2010. ASSESS MENT YEAR : 2003-04. DY. COMMISSIONER OF INCOME-TAX, SHRI SUNIL V. SANGOI, CIRCLE-33, MUMBAI. VS. 2 ND FLOOR, VASUNDHARA, OPP. SONY MONY, S.V. ROA D, VILE PARLE (W), MUMBAI 400 056. PAN AAIPS8992D APPELLANT. RESPONDENT. APPELLANT BY : SHRI S ANJIV DUTT. RESPO NDENT BY : SHRI VIJAY MEHTA. O R D E R. PER P.M. JAGTAP, A.M. : THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF LEARNED CIT(APPEALS)-41, MUMBAI DATED 26-11-2009 AND THE GR OUND RAISED BY THE REVENUE READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THE A.O. TO CANCEL THE PE NALTY OF RS.3,00,000/- LEVIED U/S 271D OF THE I.T. ACT, WITHOUT CONSIDERIN G THE FACT THAT THERE WAS NO GENUINE BUSINESS EXIGENCY WHICH FORCED THE ASSES SEE TO VIOLATE THE PROVISIONS OF SECTION 269SS OF THE I.T. ACT. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES A ND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS NOTED AT THE OUTSET FROM THE GROUND RAISED BY THE 2 ITA NO. 618/MUM/2010 ASSESSMENT YEAR:2003-04. REVENUE, THE TAX EFFECT INVOLVED IN THIS APPEAL FIL ED BY THE REVENUE IS NOT MORE THAN RS.3 LAKHS AND THIS POSITION HAS NOT BEEN DIS PUTED EVEN BY THE LEARNED DR. AS PER THE CBDT INSTRUCTION NO. 3 OF 2011 ISSUED ON 09-02-2011, THE MONETARY LIMIT FOR FILING OF AN APPEAL BY THE DEPARTMENT BEF ORE THE TRIBUNAL HAS BEEN REVISED TO RS.3 LAKHS. AS DECIDED BY THE CBDT, APPEALS SHAL L NOT BE FILED BY THE DEPARTMENT IN CASES WHERE TAX EFFECT DOES NOT EXCEE D RS.3 LAKHS. IN THE CASE OF CIT VS. MADHUKAR INAMDAR (HUF) 318 ITR 149, THE HON BLE BOMBAY HIGH COURT HAS HELD THAT CBDT INSTRUCTION FIXING ANY MONETARY LIMIT FOR FILING THE APPEAL WOULD APPLY EVEN FOR THE PENDING CASES. KEEPING IN VIEW THE SAID DECISION OF HONBLE JURISDICTIONAL HIGH COURT AND THE BOARD INS TRUCTION NO. 3 OF 2011 DATED 09-02-2011, WE HOLD THAT THE PRESENT APPEAL FILED B Y THE DEPARTMENT INVOLVING TAX EFFECT OF NOT MORE THAN RS.3 LAKHS IS NOT MAINTAIN ABLE. THE SAME IS, THEREFORE, DISMISSED AT THE THRESHOLD. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. . ORDER PRONOUNCED ON THIS 12 TH DAY OF AUGUST , 2011. SD/- SD/- (VIJAY PAL RAO) (P.M. JAGTAP) JUDICIAL MEMBER A CCOUNTANT MEMBER MUMBAI, DATED: 12 TH AUGUST, 2011. COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, I-BENCH. (TRUE COPY ) BY ORDER ASSTT. REGISTRAR, WAKODE ITAT, MUMBAI BENCHES, MUMBAI. 3 ITA NO. 618/MUM/2010 ASSESSMENT YEAR:2003-04.