The Commissioner Of Income Taxiii vs M/S Deccan Chronicle
2022 Latest Caselaw 5584 Tel

    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
                                     2                       HCJ & CVBRJ
                                                    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