Ita/14/2016 Of Principal Commissioner Of Income Tax v. M/S Tirupati Construction

I. T. A. No. 14 of 2016 17/08/2016 Ms. Veena Mandlik, learned Counsel for the appellant. Shri Pradeep Choudhary, learned Counsel for therespondent. Heard on I.A. No.4392/2016 an application forcondonation of delay. It is submitted that due to calculation there is delay ofone day. On due consideration, delay of one day is herebycondoned by allowing the I.A. No.4392 of 2016. Also heard on the question of maintainability ofappeal. An objection has raised by the respondent that as perCircular No.21/2015 dated 10[th] December, 2015 issued byCentral Board of Direct Taxes, New Delhi, prescribing themonetary limits for filing departmental appeals before thisCourt where the tax effect does not exceed Rs.20 Lacs. Inthe present case the tax effect is less than the monetarylimit of Rs.20 Lacs and, therefore, in view of the CircularNo. 21/2015 dated 10[th] December, 2015 the appeal itself isnot maintainable. In reply, learned Counsel for the department hasdrawn our attention to Clause—8 of the aforesaid Circularand submitted that on the basis of Audit objection theproceedings under Section 263 of I.T. Act, 1961 had beeninitiated and, therefore, the appeal is maintainable. We after considering the aforesaid submission of the pp department, perused the order passed by theCommissioner Income Tax (Appeals) as well as order ofI.TA.T., there is nothing on record to indicate that on basisof audit objection as prescribed under Clause—8 of Circulardated 10[th] December, 2015 the proceedings was initiatedunder Section 263 of the I.T. Act and, therefore, aforesaidobjection is devoid of any substance. Since the valuation ofappeal is less than Rs.20,00,000/- (rupees twenty lakhs),therefore, we dismiss this appeal, leaving the question oflaw open. (P. K. Jaiswal)Judge (D. K. Paliwal) Judge