M/S MAYUR LEATHER PRODUCTS LTD., Jaipur V. INCOME TAX OFFICER, WARD-7-3, Jaipur

CO 33/JPR/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6247 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 11-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J C KULHARI
• Assessee Lawyers: WRITTEN SUBMISSION DHK
• Keywords: Tax effect
• Section: 14A

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 1016 & 1017/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13 & 13-14. THE INCOME - TAX OFFICER, WARD 7(3), JAIPUR. CUKE VS. M/S. MAYUR LEATHER PRODUCTS LTD., 65-67, UDHYOG VIHAR, JAITPURA INDUSTRIAL AREA, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCM 1848 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT C.O. NOS. 33 & 34/JP/2018 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 1016 & 1017/JP/2018) FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2012-13 & 13-14. M/S. MAYUR LEATHER PRODUCTS LTD., 65-67, UDHYOG VIHAR, JAITPURA INDUSTRIAL AREA, JAIPUR. CUKE VS. THE INCOME - TAX OFFICER, WARD 7(3), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCM 1848 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI J.C. KULHARI (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : WRITTEN SUBMISSION LQUOKBZ DH RKJH[K@ DATE OF HEARING : 28.01.2019. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 28/01/2019. VKNS'K@ ORDER PER BENCH : THESE TWO APPEALS BY THE REVENUE AND CROSS OBJECTI ONS BY THE ASSESSEE ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF THE LD. CIT (A) BOTH DATED 25 TH JUNE, 2018 2 ITA NOS. 1016 & 1017/JP/18 AND CO NOS. 33 & 34/JP/1 8 M/S. MAYUR LEATHER PRODUCTS LIMITED, JAIPUR. FOR THE ASSESSMENT YEARS 2012-13 AND 2013-14 RESPEC TIVELY. THE EFFECTIVE GROUND RAISED BY THE REVENUE IN BOTH THE APPEALS ARE AS UN DER :- ASSESSMENT YEAR : 2012-13 : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , WHETHER FINDING GIVEN BY THE LD. CIT (A) IN GIVING RELIEF OF RS. 8, 10,209/- OUT OF TOTAL DISALLOWANCE OF RS. 8,23,209/- MADE U/S 14A R.W. RU LE 8D, WAS NOT IN CONTRAVENTION TO THE PROVISIONS OF SECTION 14A OF T HE INCOME TAX ACT, 1961 AND CLARIFICATION ISSUED BY THE CBDT VIDE CIRC ULAR 05/2014 DATED 11.02.2014 ? ASSESSMENT YEAR : 2013-14 : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , WHETHER FINDING GIVEN BY THE LD. CIT (A) IN GIVING RELIEF OF RS. 6, 82,753/- OUT OF TOTAL DISALLOWANCE OF RS. 7,38,701/- MADE U/S 14A R.W. RU LE 8D, WAS NOT IN CONTRAVENTION TO THE PROVISIONS OF SECTION 14A OF T HE INCOME TAX ACT, 1961 AND CLARIFICATION ISSUED BY THE CBDT VIDE CIRC ULAR 05/2014 DATED 11.02.2014 ? 2. WE HAVE HEARD THE LD. D/R AND CONSIDERED THE WRI TTEN SUBMISSIONS FILED BY THE ASSESSEE. AT THE OUTSET, WE NOTE THAT THE TAX EFFECT IN BOTH THE APPEALS OF THE REVENUE IS NOT EXCEEDING THE LIMIT PROVIDED UNDER C BDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018, THEREFORE, THE QUESTION OF MAINTAINABI LITY OF THE REVENUES APPEAL DOES ARISE. THE LD. D/R HAS NOT DISPUTED THE FACT T HAT THE TAX EFFECT INVOLVED IN BOTH THE APPEALS IS NOT EXCEEDING RS. 20 LACS. HOWEVER, HE HAS SUBMITTED THAT THE COMMON ISSUE INVOLVED IN BOTH THE APPEALS IS REGARD ING DISALLOWANCE MADE UNDER SECTION 14A WHICH WAS DELETED BY THE LD. CIT (A), T HEREFORE, THE ISSUE FALLS IN THE EXCEPTION UNDER PARA 10(B) OF THE CBDT CIRCULAR NO. 3/2018. THE ASSESSEE HAS SUBMITTED IN THE WRITTEN SUBMISSION THAT THE APPEAL S OF THE REVENUE ARE NOT MAINTAINABLE DUE TO THE LOW TAX EFFECT IN VIEW OF T HE CIRCULAR NO. 3/2018 DATED 11 TH 3 ITA NOS. 1016 & 1017/JP/18 AND CO NOS. 33 & 34/JP/1 8 M/S. MAYUR LEATHER PRODUCTS LIMITED, JAIPUR. JULY, 2018. FURTHER, THE ISSUE OF SECTION 14A DOES NOT FALL IN THE EXCEPTION AS PER PARA 10(B) OF THE CIRCULAR. THUS THE ASSESSEE HAS C ONTENDED THAT THE APPEALS OF THE REVENUE ARE LIABLE TO BE DISMISSED BEING NOT MAINTA INABLE. AS REGARDS THE CROSS OBJECTIONS, THE ASSESSEE IS ONLY SUPPORTING THE ORD ER OF THE LD. CIT (A) AND NO NEW ISSUE IS RAISED. THE ASSESSEE HAS ALSO RELIED UPON THE DECISION OF THIS TRIBUNAL DATED 31 ST OCTOBER, 2018 IN CASE OF DCIT VS. MAYUR LEATHER PR ODUCTS LTD. IN ITA NO. 1109/JP/2018. 3. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD, AT THE OUTSET, WE NOTE THAT THE TAX EFFECT IN BOTH THE REVENUES APPEALS IS NOT EXCEEDING THE LIMIT PROVIDED UNDER CBDT CIRCULAR NO . 3/2018 AND THIS FACT IS NOT DISPUTED BY THE LD. D/R. AS REGARDS THE MATTER FAL LS IN THE EXCEPTION UNDER SECTION 10(B) OF THE CBDT CIRCULAR, WE FIND THAT THE ISSUE OF DISALLOWANCE MADE UNDER SECTION 14A WHICH WAS DELETED BY THE LD. CIT (A) DO ES NOT INVOLVE ANY NOTIFICATION, INSTRUCTION OR CIRCULAR ISSUED BY THE CBDT WHICH HA S BEEN HELD TO BE ILLEGAL OR ULTRA VIRES. THEREFORE, IN OUR CONSIDERED VIEW, THE PRESE NT APPEALS OF THE REVENUE ARE NOT COVERED BY THE EXCEPTION GIVEN IN PARA 10(B) OF THE CBDT CIRCULAR NO. 3/2018. ACCORDINGLY, THE APPEALS OF THE DEPARTMENT ARE NOT MAINTAINABLE AND LIABLE TO BE DISMISSED. 4. AS REGARDS THE CROSS OBJECTIONS, THE ASSESSEE HA S NOT RAISED ANY NEW GROUND IN THE CROSS OBJECTIONS BUT THE CROSS OBJECTIONS AR E IN SUPPORT OF THE ORDER OF THE LD. CIT (A). HENCE, IN VIEW OF THE APPEALS OF THE REVEN UE ARE DISMISSED, THE CROSS OBJECTIONS BECOME INFRUCTUOUS AND LIABLE TO BE DISM ISSED. 4 ITA NOS. 1016 & 1017/JP/18 AND CO NOS. 33 & 34/JP/1 8 M/S. MAYUR LEATHER PRODUCTS LIMITED, JAIPUR. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A ND CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 28/01 /2019. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 28/01/2019. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO WARD 7(3), JAIPUR. 2. THE RESPONDENT M/S. MAYUR LEATHER PRODUCTS LTD ., JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.1016 & 1017/JP/18 AND C.O. NO . 33 & 34/JP/18) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NOS. 1016 & 1017/JP/18 AND CO NOS. 33 & 34/JP/1 8 M/S. MAYUR LEATHER PRODUCTS LIMITED, JAIPUR.