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2013 (12) TMI 310 - HC - Income TaxTax effect - Held that - In view of Board Circular dated dated 27.3.2000 issued under Section 268-A of the Act where the monetary limit has been fixed for filing an appeal under various forums and the limit fixed for this High Court is four lacs - As in the present case monetary effect is less than four lac and there being neither any question of recurring nature nor has any cascading effect - Decided against Revenue.
Issues:
Appeal under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal - Cancellation of penalty under section 271(1)(c) for filing a revised return. Analysis: The appeal before the High Court was related to the cancellation of penalty under section 271(1)(c) of the Income Tax Act, 1961. The respondent-assessee, a partnership firm engaged in the export business of dried animal products, had filed its return for the Assessment Year 2001-2002 declaring income of Rs. 2,98,230 on 29.10.2001. The return was processed under section 143(1) of the Act and selected for scrutiny. The assessment was completed on a total income of Rs. 8,15,030, as the assessee had furnished inaccurate particulars and concealed income. Penalty proceedings were initiated, and a show cause notice was issued on 3.10.2003. The assessee rectified the mistake by voluntarily showing additional income of Rs. 5,08,395 as capital gains in a revised return filed on 27.3.2003. However, the Assessing Officer imposed a penalty of Rs. 1,99,291 under section 271(1)(c) of the Act, which was confirmed by the Commissioner of Income Tax (Appeals). The Tribunal, after considering the facts and circumstances of the case, allowed the appeal and canceled the penalty imposed by the Assessing Officer. The Revenue, aggrieved by the Tribunal's decision, filed the present appeal before the High Court. During the hearing, the counsel for the respondent raised a preliminary objection regarding the maintainability of the appeal based on a Board Circular dated 27.3.2000, which fixed a monetary limit for filing appeals. As the monetary effect in the present case was less than the specified limit for the High Court, and there was no question of a recurring nature or cascading effect, the High Court dismissed the appeal on these grounds. In conclusion, the High Court dismissed the appeal against the cancellation of the penalty under section 271(1)(c) based on the preliminary objection raised regarding the maintainability of the appeal due to the monetary limit set by the Board Circular.
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