KUNAL JAYANTILAL GALA, MUMBAI V. ITO WD 13(1)(2), MUMBAI

CO 183/MUM/2015

• Counselvise Citation: [2016] 112 COUNSELVISE.COM (IT) 4166 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 05-11-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A RAMACHANDRA
• Keywords: Deemed dividend; Tax effect
• Section: 143(3); 201; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH , MUMBAI BEFORE SRI MAHAVIR SINGH, J M AND SRI RAMIT KOCHAR , A M ITA NO . 3493 /MUM/2014 (A.Y.:2009 - 10 ) THE INCOME TAX OFFICER, WARD - 13(1 ) (2), R. NO.419, AAYAKAR BHAVAN, MUMBAI 400 020 VS. SHRI KUNAL JAYANTILAL GALA, 190, KAMAL KUNJ, 4 TH FLOOR, WADALA STATION ROAD, WADALA, MUMBAI 400 031 PAN: AFXPG4569A APPELLANT .. RESPONDENT C. O. NO.183/MUM/2015 (IN ITA NO.3493/MUM/2014 : AY.2009 - 10) SHRI KUNAL JAYANTILAL GALA, 190, KAMAL KUNJ, 4 TH FLOOR, WADALA STATION RO AD, WADALA, MUMBAI 400 031 VS. THE INCOME TAX OFFICER, WARD - 13(1 ) (2), R. NO.419, AAYAKAR BHAVAN, MUMBAI 400 020 PAN: AFXPG4569A APPELLANT /CROSS OBJECTOR .. RESPONDENT REVENUE BY SHRI A. RAMACHANDRA, DR ASSESSEE BY SHRI RAHUL HAKANI, AR DATE OF HE ARING 21 - 06 - 16 DATE OF PRONOUNCEMENT 21 - 06 - 2016 O R D E R PER MAHAVIR SINGH , JM : THIS APPEAL BY THE REVENUE AND THE CROSS OBJECTION BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE CIT (A) - 24 , MUMBAI PASSED IN APPEAL NO.24 /13(1 ) ( 2)/143/12 - 13 DATED 14 - 02 - 2014 . ASSESS MENT W AS FRAMED BY THE ITO, WARD 13(1) (2) , MUMBAI FOR ASSESSMENT YEAR 200 9 - 10 VIDE HIS ORDER DATED 3 1 - 0 1 - 2009 U/S 143(3) READ WITH SECTION 147 OF THE INCOME TAX ACT, 1961 (H EREINAFTER REFERRED TO AS THE ACT). 2. THE ONLY ISSU E IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE LEARNED CI T (A) DELETING THE ADDITION OF RS.24,00,000/ - MADE THE AO , TREATING THE SAME AS DEEMED DIVIDEND U/S 22 (E) OF THE ACT. ITA NO. 3493 /MUM/20 1 4 C. O. NO.183/MUM/2015 2 3. AT THE OUTSET THE LEARNED COUNSEL F OR THE ASSESSEE POINTED OUT THAT THE TAX EFFECT IN TH IS APPEAL IS BELOW RS.10.00 LAC S AND FURTHER SUBMITTED THAT IN VIEW OF THE CBDT CIRCULAR NO.21/2015, DATED 10.12.2015 BROUGHT OUT BY THE CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDI A, THE APPEAL WAS NOT MAINTA INABLE AND BE DISMISSED. THE LEARNED SR. DR ALSO AGREED TO THE SUBMISSION OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND FROM THE RECORDS BEFORE US T HAT THE TAX INVOLVED IN THE DISPUTED ISSUE IS BELOW RS.10 L ACS AND THEREFORE, IN VIEW OF THE CIRCULAR NO 21/2015 DATED 10 TH DECEMBER, 2015 NO APPEAL SHOULD BE FILED BY THE REVENUE BEFORE THE TRIBUNAL WHICH HAS TAX EFFECT OF RS . 10.00 LACS OR LESS AND THIS CIRCULAR IS ALSO APPLICABLE RETROSPECTIVELY TO ALL PENDING APPEALS. THE RELEVANT EXTRACT THE SAID CBDT CIRCULAR (SUPRA) IS AS UNDER: - THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNAL S. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 5 . CONSIDERING THE AB OVE, THE APPEAL FILED BY THE REVENUE, IS THEREFORE DISMISSED. 6. IN VIEW OF OUR ABOVE DECISION IN RESPECT TO REVENUES APPEAL, THE CROSS OBJECTION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND THE SAME IS DISMISSED AS SUCH. 7 . IN THE RESULT, THE APPEA L OF THE REVENUE AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE, BOTH ARE DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON 21 /06 / 201 6 . SD/ - SD/ - ( RAMIT KOCHAR ) ( MAHAVIR SINGH ) ACCOUNTANT MEM BER JUDICIAL MEMBER MUMBAI , DATED 21 /6 / 201 6 LAKSHMIKANTA DEKA/SR.PS ITA NO. 3493 /MUM/20 1 4 C. O. NO.183/MUM/2015 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASSISTANT REGISTRAR ITAT, MUMBAI DATE INITIAL DICTATION PAD ATTACHED WITH THE DRAFT ORDER YES 1. DRAFT DICTATED ON 21 - 06 - 16 SR.PS 2. DRAFT PLACED B EFORE AUTHOR 22 - 06 - 16 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CL ERK SR.PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT ( A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//