HIGH COURT OF GUJARAT
Commissioner of Income-tax
versus
Sureshchandra Durgaprasad Khatod (HUF)
Tax Appeal No. 1404 of 2010
AUGUST 24, 2012
JUDGMENT
V.M. Sahai, J.
We have heard Mr. Pranav G. Desai, learned counsel appearing for the appellant and Mr. Bandish Soparkar, holding brief of Ms. Swati Soparkar, learned counsel appearing for the respondent.
2. This Tax Appeal has been admitted on 29.8.2011 on the following substantial question of law.
“Whether in the circumstances and facts of the case and in law, the Appellate Tribunal is right in deleting the penalty levied under section 271(1)(c) of the Income-tax Act, 1961, particularly when the additions made by the Assessing Officer during the assessment proceedings had been confirmed by the Appellate Tribunal itself holding it to be unaccounted income of the assessee ?”
3. Mr. Bandish Soparkar, learned counsel appearing for the respondent has raised a preliminary objection that in view of the Instruction No.3 of 2011 dated 9.2.2011 issued by the Central Board of Direct Taxes (for short “CBDT”) under section 268A(1) of the Income Tax Act, 1961 (for short ‘the Act’), this Tax Appeal filed under section 260A of the Act would not be maintainable as Instruction No.3 of 2011 issued by CBDT would also apply to pending Appeals.
4. It is necessary to reproduce Instruction No.3 of 2011 dated 9.2.2011 as under:
“INSTRUCTION NO. 3/2011(F.No.279/MISC.142/2007-ITJ, DATED 9-2-2011.
Reference is invited to Board’s instruction No.5/2008 dated 15.5.2008 wherein monetary limits and other conditions for filing departmental appeals (In Income-tax matters) before Appellate Tribunal, High Courts and Supreme Court were specified.
2. In super session of the above instruction, it has been decided by the Board that departmental appeals may be filed on merits before Appellate Tribunal, High Courts and Supreme Court keeping in view the monetary limits and conditions specified below.
3. Henceforth appeals shall not be filed in cases where the tax effect does not exceed the monetary limits given here under:-
