Income Tax Ordinance (XXXI of 1979)‑‑‑

‑‑‑‑Ss. 108 & 50(2)(b)‑‑‑Penalty for failure to furnish return of total income and certain statements‑‑‑Reduction in penalty by First Appellate Authority‑‑‑Appeal for petty amount of penalty ‑‑‑Validity‑‑Mere relief of Rs.3,500 in penalty without involvement of any question of law should have been avoided because filing of the appeal‑ required a lot of expenditure which should best be avoided‑‑‑Appeal was dismissed by the Appellate Tribunal.

Muhammad Boota Khan, D.R. for Appellant.

Nemo for Respondent.

Date of hearing: 19th July, 2003.

ORDER

INAM ELLAHI SHEIKH (CHAIRMAN).‑‑‑This departmental appeal is directed against an order, dated 21‑2‑2002 recorded by the learned AAC, Sargodha to agitate the reduction in the penalty under section 108 of the Income Tax Ordinance, 1979 (hereafter called the 1979 Ordinance from Rs.4,000 to Rs.500.

2. The relevant facts in brief are that the Assessing Officer imposed a penalty of Rs.4,000 for stated default of more than eight months in filing of statements under section 143 of the Income Tax Ordinance, 1979 in respect of withholding tax under section 50(2)(B) of the 1979 Ordinance. The learned CIT(A) found the explanation of the assessee to be reasonable and reduced the penalty to Rs.500.

3. The learned DR has not been able to substantiate the appeal which is found to be petty and frivolous. The department must consider the pros and cons of filing of an appeal. A mere relief of Rs.3,500 in penalty without the involvement of any question of law should have been avoided because the proceedings as well as the filing of the appeal require a lot of expenditure which should best be avoided. The appeal is dismissed.

C.M.A./849/Tax(Trib.)Appeal dismissed.