Nupur Aggarwal, New Delhi vs Department Of Income Tax

Appellant by : Shri P. Dam Kanunjha, Sr.DR. Respondent by : Dr. Ram Samujh, Advocate.

Date of hearing : 19.03.2015 19.03.2015 Date of pronouncement : 01.04.2015

ORDER

PER G.C. GUPTA, GUPTA, VP :

These appeals by the Revenue for the assessment year 2007-08 are directed against the order of learned CIT(A)-XXX, New Delhi dated 16th July, 2012. These are being disposed of with this consolidated order.

ITA No.5237/Del/2012 - (Quantum appeal) :- :-

2. At the outset, the learned counsel for the assessee submitted that as per CBDT's Instruction No.5/2014 dated 10.07.2014, the revised limit for preferring appeals by the Revenue before the ITAT is `4 lakhs. He stated that the tax effect in the present appeals of the Revenue is `2,37,200/- which is below the prescribed limit of `4 lakhs.

He has also filed a working of tax calculation to this effect in support of his argument. He, therefore, requested that the revenue's appeals may be dismissed as the tax effect being below the prescribed limit.

2 ITA-5237 & 5280/D/2012

3. The learned DR submitted that the enhanced limit of `4 lakhs shall not be applicable to the appeals of the Revenue filed in the year 2012.

4. We have considered the rival submissions and have gone through the order of the Assessing Officer and the CIT(A). We find that the disputed amount of tax in this case is admittedly less than `4 lakhs. The enhanced limit of `4 lakhs is applicable to the pending appeals of the Revenue also as held by the Coordinate Bench of the Tribunal. Accordingly, the present appeals of the Revenue are not maintainable and are dismissed in limine as not admitted.

ITA No.5280/Del/2012 - [Under Section 271(1)(c)] 271(1)(c)] :-

:-

5. The grounds of appeal of the Revenue are as under:-

"On the facts and in the circumstances of the case and in law, the ld.CIT(A) has erred in :

(i) deleting the penalty u/s 271(1)(c) rightly levied by the AO.

(ii) deleting the penalty for an amount of Rs.4,53,340/-

ignoring the fact that the AO has not provided the reasonable opportunities of being heard."

6. At the outset, learned counsel for the assessee submitted that the penalty was levied by the Assessing Officer under Section 271(1)(c) of the Act on the disallowance of `88,968/- and the disallowance of `1,50,000/- and the addition of `11,03,000/-. The penalty levied was `4,53,340/-. He submitted that in the quantum appeal of the assessee, the CIT(A) has deleted all the three additions and the Revenue has preferred appeal only on one ground of deletion of addition of `11,03,000/- and with regard to the other two disallowances, the Revenue has accepted the decision of the CIT(A) in deleting the addition. He submitted that accordingly, the tax effect in the penalty appeal of the Revenue comes to less than `4 lakhs and, therefore, the 3 ITA-5237 & 5280/D/2012

appeal is not maintainable as per the CBDT Instruction No.5/2014 dated 10.07.2014. Moreover, in case the Tribunal holds that the Revenue's appeal in the quantum case of the assessee is not maintainable due to disputed amount being less than `4 lakhs, the order of learned CIT(A) deleting the additions becomes final and on this count also, no penalty under Section 271(1)(c) could be levied.

7. Learned DR has submitted that the enhanced limit of `4 lakhs shall not be applicable to the appeals of the Revenue filed in the year 2012.

8. We have considered the rival submissions and have perused the order of the Assessing Officer and the CIT(A). We find that the Revenue has not preferred any grounds of appeal with regard to deletion of the disallowances of `88,968/- and `1,50,000/- and, therefore, the disputed penalty amount being less than `4 lakhs, the present appeal of the Revenue is not maintainable. Moreover, we have dismissed the Revenue's appeal in the quantum appeal of the Revenue in ITA No.5237/Del/2012 in the foregoing paragraphs of this order and, accordingly, the order of learned CIT(A) in deleting the addition of `11,03,000/- becomes final and, therefore, there is no mistake in the order of learned CIT(A) in holding that as the assessee has got full relief in the quantum appeal, the penalty imposed under Section 271(1)(c) is deleted. Accordingly, the order of learned CIT(A) deleting the penalty under Section 271(1)(c) of the Act is confirmed and the grounds of appeal of the Revenue are dismissed.

9. In the result, both the appeals of the Revenue are dismissed.

Decision pronounced in the open Court on 1st April, 2015.

Sd/- Sd/- (T.S. KAPOOR) KAPOOR) (G.C. (G.C. GUPTA) GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT

VK. 4 ITA-5237 & 5280/D/2012

Copy forwarded to: -

1. Appellant : Income Tax Officer, Ward- Ward-46(2), New Delhi.

2. Respondent : Ms. Nupur Aggarwal,

L-33, Sarita Vihar, New Delhi - 110 044.

3. CIT

4. CIT(A)

5. DR, ITAT

Assistant Registrar