Deputy Commissioner Of Income Tax v. Krishna Textiles....opponent(S

O/TAXAP/782/2006 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 782 of 2006 TO TAX APPEAL NO. 784 of 2006 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE KS JHAVERI andHONOURABLE MR.JUSTICE K.J.THAKER ================================================================ 1 Whether Reporters of Local Papers may be allowed to see the judgment ?the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ?judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 or any order made thereunder ?to the interpretation of the Constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ================================================================ DEPUTY COMMISSIONER OF INCOME TAX....Appellant(s)Versus KRISHNA TEXTILES....Opponent(s) ================================================================ Appearance:MR SUDHIR M MEHTA, ADVOCATE for the Appellant(s) No. 1MRS SWATI SOPARKAR, ADVOCATE for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE KS JHAVERIandHONOURABLE MR.JUSTICE K.J.THAKER Date : 20/11/2014 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of these appeals, the appellant-revenue has challenged the order dated 18.10.2005 passed by the Income-tax Appellate Tribunal, Ahmedabad Bench in ITA Nos. 766/Ahd/1998, 767/Ahd/1998 & 812/Ahd/1998. 2. While admitting these appeals on 15.11.2006, this Court has framed the following substantial question of law: “Whether, on the facts and in the circumstances of the case, and in law, the Income Tax Appellate Tribunal is right in deleting penalty imposed by the Assessing Officer and upheld by the Commissioner of Income Tax (Appeals) – II, Surat, without considering the provisions of Explanation -1 to Section 271(1) of the Income Tax Act?” 3.In our view, the amount involved in the present case is a small one and the revenue effect is less than Rs. 1 lakh, and therefore, as per CDBT Instruction No. 1979 dated 27[th ]March, 2000 and 02 of 2005, the revenue ought not to have come in appeal where the total revenue effect is less than Rs. 1 lakh, and therefore, these appeals are not entertained. The questions are answered in favour of the assessee and against the revenue. These appeals are dismissed on the ground of smallness of amount. Liberty to revive in case of difficulty. divya (K.S.JHAVERI, J.) (K.J.THAKER, J)