THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
I.T.T.A. No.30 of 2006
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. B.Narasimha Sarma, learned Standing
Counsel, Income Tax Department for the appellant.
2. This appeal has been preferred by the Revenue as
the appellant under Section 260A of the Income Tax Act, 1961
(briefly referred to hereinafter as the 'Act'), assailing the
legality and validity of the order dated 14.09.2004 passed by
the Income Tax Appellate Tribunal, Hyderabad Bench 'A',
Hyderabad (Tribunal) in I.T.A.No.431/Hyd/2002 for the
assessment year 1998-99.
3. The appeal arises out of levy of penalty under
Section 271(1)(c) of the Act. In the appeal, the following
question has been proposed as substantial question of law:
"On the facts and in the circumstances of the case,
whether the findings of the Tribunal that the inaccurate
particulars relating to depreciation schedule furnished by
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I.T.T.A.No.30 of 2006
the Assessee are not intentional and it is a clerical
mistake in nature and its consequential order cancelling
the penalty levied u/s.271 (1)(C) of Income Tax Act is
sustainable in law?"
4. On 02.02.2006, the appeal was admitted for
hearing.
5. Mr. Sarma, learned counsel for the appellant fairly
submits that the disputed penalty would be below Rs.50
lakhs.
6. In the hearing today, we have perused the
assessment order dated 28.03.2002. We find therefrom that
the taxable income of the respondent was determined at
Rs.85,00,480.00 and the penalty to be paid was quantified at Rs.21,78,514.00.
7. Central Board of Direct Taxes (CBDT) has issued Circular No.17 of 2019, dated 08.08.2019, amending the previous Circular No.3 of 2018, dated 11.07.2018, by further enhancing the monetary limits for filing appeals by the Income Tax Department before the Income Tax Appellate 3 HCJ & CVBRJ I.T.T.A.No.30 of 2006 Tribunals, High Courts and Supreme Court as a measure for reducing litigation. In paragraph 2 of the said circular we find that the monetary limit fixed for filing an appeal before the High Court is Rs.1.00 crore.
8. In the instant appeal, quantum of penalty is Rs.21,78,514.00, which is well below the monetary limit.
9. Therefore, the appeal filed by the Department is dismissed in terms of the aforesaid Circular No.17 of 2019, dated 08.08.2019. However, if the appeal comes within the exception under paragraph 10 of Circular No.3 of 2018, it would be open to the Income Tax Department to seek revival of the appeal.
10. Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs.
__________________________ UJJAL BHUYAN, CJ ___________________________ C.V.BHASKAR REDDY, J Date: 02.11.2022 KL