ITO Vs. LIC OF INDIA

JUDGEMENT

(1.) These two appeals are by the revenue against the order of the Commissioner (Appeals) for the assessment years 1988-89 and 1989-90 against the deletion of interest of Rs. 2,001 and Rs. 2,466 respectively levied by the assessing officer under section 201(1A) of the Act. Both the appeals are late by 12 days and after going through the petition for condonation and the material on record, we are of the opinion that the revenue was prevented by sufficient and reasonable cause in delayed filing of the appeals. We, accordingly, condone the delay and proceed to decide the appeals on merits.

(2.) In both the appeals, the tax effect is less than Rs. 25,000 and, therefore, the revenue should have refrained to file the second appeal in view of the Central Board of Direct Taxes circular dated 28-10-1992 vide No. F. 279/116 of 1992-Income Tax and consequently the time of the Tribunal, of its own (Revenues) officers as well as the assessee would have been saved and utilised on some substantive matters. It would be apt to quote other observation of Delhi High Court in the case of CIT v. ITAT,1998 232 ITR 207 as below :

(3.) Be that as it may, on merits also we do not find any reason to take a different view than that of the Deputy Commissioner (Appeals). His order is just and proper and no interference therein is called for. Suffice it would be if we quote the following paragraph from his order :