DCIT, Ludhiana V. Sh. Sohan Singh Garcha, Ludhiana

ITA 973/CHANDI/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8968 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 year(s) 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-09-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 25-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• 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 NOS. 973 & 1330/CHD/2012 ASSESSMENT YEARS: 2006-07 THE DCIT, VS SHRI SOHAN SINGH GARCHA, CIRCLE-VI, 901/2, PUNJAB MATA NAGAR, LUDHIANA. LUDHIANA PAN: AGQPG7446L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.K.MITTAL RESPONDENT BY : NONE DATE OF HEARING : 22.11.2016 DATE OF PRONOUNCEMENT : 22.11.2016 O R D E R PER BHAVNESH SAINI,JM THIS ORDER SHALL DISPOSE OFF BOTH THE DEPARTMENTAL APPEALS. 2. THE DEPARTMENT APPEAL IN ITA 973/2012 HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-2, L UDHIANA DATED 20.11.2009 FOR ASSESSMENT YEAR 2006-07 CHALLE NGING THE DELETION OF ADDITION OF RS. 28.50 LACS. 3. THE DEPARTMENTAL APPEAL IN ITA 1330/2012 HAS BEE N DIRECTED AGAINST ORDER OF LD. CIT(APPEALS)-2 LUDHIA NA DATED 23.11.2012 FOR ASSESSMENT YEAR 2006-07 CHALLENGING THE 2 CANCELLATION OF PENALTY UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT ON DELETION OF ADDITION OF RS. 28.50 LACS. 4. ACCORDING TO CIRCULAR NO. 21/2015 DATED 10.12.20 15, THE CBDT IN SUPERCESSION OF EARLIER INSTRUCTIONS HA S DIRECTED THAT DEPARTMENTS APPEALS BEFORE ITAT SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONE TARY LIMIT OF RS. 10 LACS. THE TAX WILL NOT INCLUDE ANY INTER EST THEREON. IT IS FURTHER CLARIFIED THAT IF IN THE CASE OF AN A SSESSEE, DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT Y EAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF DISPUTE D ISSUES EXCEEDS THE MONETARY LIMIT SO SPECIFIED. THIS INST RUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEAL S TO BE FILED HENCEFORTH BEFORE THE TRIBUNAL. THE PENDING A PPEALS BELOW THE SPECIFIED TAX LIMIT MAY BE WITHDRAWN/NOT PRESSED. 5. ADMITTEDLY, IN THE DEPARTMENTAL APPEALS, THE TAX EFFECT IS LESS THAN RS. 10 LACS, THEREFORE, DEPARTMENTAL A PPEALS ARE NOT MAINTAINABLE. THE LD. CIT(APPEALS) DECIDED THE ISSUE IN DEPARTMENTAL APPEALS ON FACTS AND THE CASES OF THE REVENUE WOULD NOT FALL IN THE EXCEPTIONS PROVIDED IN THE AB OVE CIRCULAR. 6. IN VIEW OF THE ABOVE, LD. DR STATED THAT SINCE DEPARTMENTAL APPEALS ARE FILED AGAINST THE CBDT INSTRUCTIONS, THEREFORE, HE WOULD NOT BE PRESSING 3 DEPARTMENTAL APPEALS. THEREFORE, THE ABOVE DEPARTM ENTAL APPEALS ARE DISMISSED BEING NOT PRESSED. 6(I) FURTHER, WHEN QUANTUM ADDITION HAVE BEEN DELET ED AND DEPARTMENTAL APPEAL IS DISMISSED, THEREFORE, PENALT Y COULD NOT BE LEVIED. THEREFORE, DEPARTMENTAL APPEAL ON P ENALTY IS ALSO DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SAI NI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22 ND NOVEMBER,2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD