ITO, Khanna V. Shri Shamsher Singh Dullo, Khanna

ITA 871/CHANDI/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0048 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 03-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 871/CHD/2015 ASSESSMENT YEAR: 2007-08 THE ITO, VS SHRI SHAMSHER SINGH DULLO, WARD 4, SAMRALA ROAD, KHANNA. KHANNA. PAN: AGCPD2643L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : SHRI SUDHIR SEHGAL DATE OF HEARING : 02.05.2016 DATE OF PRONOUNCEMENT : 02.05.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST T HE ORDER OF LD. CIT(APPEALS)-II, LUDHIANA DATED 24.09. 2015 FOR ASSESSMENT YEAR 2007-08 ON THE FOLLOWING GROUND : WHETHER IN THE CIRCUMSTANCES OF THE FACT OF THE CASE AND IN LAW, THE LD.CIT(A)-2, LUDHIANA WAS RIGHT IN DELETING PENALTY U/S 271(1)(C) AMOUNTING TO RS.39,35,658/- ON ACCOUNT O F UNDISCLOSED LONG TERM CAPITAL GAIN U/S 45 OF THE I.T. ACT BY IGNORING THE HON'BLE PUNJAB & HIGH COURT FINDINGS, A S THE HON'BLE PUNJAB & HIGH COURT HAS DELETED ONLY ADDITION OF RS.1,50,75,0007- ON ACCOUNT OF AMOUNT RECEIVABLE FOR SALE OF PLOT BUT CONFIRMED ADDITION OF RS.33,00,000/- ON ACCO UNT OF SALE CONSIDERATION RECEIVED FOR SALE OF PLOT. THERE FORE, THE LD.CIT(A)-2, LUDHIANA HAS WRONGLY DELETED PENALTY OF RS.9,52,051/- U/S 271(1)(C) OF THE I.T. ACT. 1961 TO THE EXTENT 2 OF ADDITION OF RS.24,63,589/- CONFIRMED ON ACCOUNT OF UNDISCLOSED LONG TERM CAPITAL GAIN U/S 45 OF THE I.T. AC T. 2. IT IS ADMITTED FACT THAT SUBSTANTIAL ADDITION H AVE BEEN DELETED ON ACCOUNT OF THE APPEALS DECIDED BY HON'BL E PUNJAB & HARYANA HIGH COURT IN THE GROUP CASES OF C.S.ATWAL & OTHERS. IN THE PRESENT APPEAL, REVENUE IS AGGRIEVED AGAINST THE ORDER OF LD. CIT(APPEALS) IN DELETING THE PENALTY OF RS. 9,5 2,051/- UNDER SECTION 271(1)(C) OF THE ACT TO THE EXTENT OF ADDIT ION OF RS. 24,63,589/- CONFIRMED ON ACCOUNT OF UNDISCLOSED LON G TERM CAPITAL GAIN UNDER SECTION 45 OF THE INCOME TAX ACT . 2. ACCORDING TO CIRCULAR NO. 21/2015 DATED 10.12.20 15, THE CBDT IN SUPERCESSION OF EARLIER INSTRUCTIONS HAS DI RECTED THAT DEPARTMENTS APPEALS BEFORE ITAT SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY L IMIT OF RS. 10 LACS. THE TAX WILL NOT INCLUDE ANY INTEREST THE REON. IT IS FURTHER CLARIFIED THAT IF IN THE CASE OF AN ASSESSE E, DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPE AL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS I N WHICH THE TAX EFFECT IN RESPECT OF DISPUTED ISSUES EXCEEDS TH E MONETARY LIMIT SO SPECIFIED. THIS INSTRUCTION WILL APPLY RE TROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH BEFORE THE TRIBUNAL. THE PENDING APPEALS BELOW THE SPECIFIED T AX LIMIT MAY BE WITHDRAWN/NOT PRESSED. 3. ADMITTEDLY, IN THE DEPARTMENTAL APPEAL, THE TAX EFFECT IS LESS THAN RS. 10 LACS, THEREFORE, DEPARTMENTAL APPE AL IS NOT MAINTAINABLE. THE LD. CIT(APPEALS) DECIDED THE ISS UE IN 3 DEPARTMENTAL APPEAL ON FACTS AND THE CASE OF THE RE VENUE WOULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE ABOVE CI RCULAR. 4. IN VIEW OF THE ABOVE, LD. DR STATED THAT SINCE DEPARTMENTAL APPEAL IS FILED AGAINST THE CBDT INSTR UCTIONS, THEREFORE, HE WOULD NOT BE PRESSING DEPARTMENTAL AP PEAL. THEREFORE, THE ABOVE DEPARTMENTAL APPEAL IS DISMISS ED BEING NOT PRESSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBE R DATED: 2 ND MAY,2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD