ITO 13(2)(4), Mumbai Sundial Creative Media Pvt. Ltd., Mumbai

The Income Tax Appellate Tribunal (Mumbai) has dismissed an appeal filed by the Income Tax Officer (ITO) against Sundial Creative Media Pvt. Ltd. The appeal concerned a penalty of Rs. 11 Lakhs levied under section 271(1)(c) of the Income Tax Act. The tribunal found that the penalty amount was below the monetary threshold of Rs. 50 Lakhs stipulated in CBDT Circular No. 17/2019, rendering the appeal not maintainable. The revenue retains the liberty to seek recall if exceptions apply or the tax effect later exceeds the limit.

IN THE INCOME TAX APPELLATE TRIBUNAL
“H” BENCH, MUMBAI

BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND
HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(Hearing Through Video Conferencing Mode)

I.T.A. No.7200/Mum/2019
Assessment Year: 2007-08)

ITO-13(2)(4)
R.No.146B, 1st Floor
Aaykar Bhawan
M.K.Road,
Mumbai – 400 020
PAN/GIR No. AAJCS-3986-K
Appellant) 

Vs.

M/s Sundial Creative Media Pvt. Ltd.
C/o Osource India Pvt. Ltd.
Unit 4, B Wing, 5th Floor
Phoenix House, 462
Senapati Bapat Marg, Mumbai – 400 013
Respondent)

Assessee by : Shri R.N.Vasani – Ld. AR
Revenue by : Shri Gurbinder Singh-Ld. DR

Date of Hearing : 21/04/2021
Date of Pronouncement : 03/05/2021

 O R D E R

Manoj Kumar Aggarwal (Accountant Member)

1. Aforesaid appeal by revenue for Assessment Year [AY] 2007-08 contest the order of Ld. Commissioner of Income-Tax (Appeals)-21, Mumbai [CIT(A)] dated 30/08/2019 which has deleted the penalty of Rs.11 Lacs u/s 271(1)(c) as levied by Ld. AO vide penalty order dated 29/01/2019. 

2. The Ld. AR, at the outset, submitted that the quantum of penalty under dispute is below prescribed threshold limit of Rs.50 Lacs and therefore, the revenue’s appeal is not maintainable in terms of latest low tax effect CBDT Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc. 142/2007-TTJ(Pt.). The Ld. DR could not point out any exception to controvert the plea raised by Ld. AR.

3. After going through material on record, we find that quantum of penalty under dispute is below threshold monetary limit of Rs.50 Lacs and therefore, the appeal is not maintainable in terms of recently issued low tax effect Circular No. 17/2019 dated 08/08/2019 [F.No.279/Misc. 142/2007-TTJ(Pt.) issued by CBDT. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. In view of the same, the appeal is not maintainable.

4. In view of the foregoing, the appeal stand dismissed. However, a liberty is given to revenue to seek recall of the appeal, if at a later stage, it is found that the matter is covered by any exceptions provided in any of the circular or in case the tax effect in the appeal exceeds the prescribed monetary limit.

5. Resultantly, the appeal stands dismissed.

Order pronounced on 3rd May, 2021.

Sd/-                               Sd/-
 (Mahavir Singh)         (Manoj Kumar Aggarwal)
Vice President            Accountant Member

Mumbai; Dated : 03.05.2021
Sr.PS, Jaisy Varghese

Copy of the Order forwarded to :
1.The Appellant
2.The Respondent
3.The CIT(A)
4.CIT– concerned
5.DR, ITAT, Mumbai
6.Guard File

BY ORDER,
(Dy./Asstt.Registrar)
ITAT, Mumbai.