AB Sandvik Materials Technology, Pune V. Deputy Commissioner of Income tax,

CO 4/PUN/2017

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 2999 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 22-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 17-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: DANESH BAFNA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE , , , BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 437 /PN/201 5 / ASSESSMENT YEAR : 20 0 6 - 07 DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION 1, PUNE ....... / APPELLANT / V/S. AB SANDVIK MATERIALS TECHNOLOGY, C/O SANDVIK ASIA PVT. LTD., 459 - 469, MUMBAI - PUNE ROAD, DAPODI, PUNE 411012 PAN : AADCA5374K / RESPONDENT . / CO NO. 04/PUN/2017 / ASSESSMENT YEAR : 2006 - 07 AB SANDVIK MATERIALS TECHNOLOGY, C/O SANDVIK ASIA PVT. LTD., MUMBAI - PUNE ROAD, DAPODI, PUNE 411012 PAN : AADCA5374K ....... / APPELLANT / V/S. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION II, PUNE / RESPONDENT ASSESSEE BY : SHRI DA NESH BAFNA REVENUE BY : SHRI AVADHESH KUMAR / DATE OF HEARING : 22 - 05 - 2017 / DATE OF PRONOUNCEMENT : 22 - 05 - 2017 2 ITA NO . 437/PUN/2015 & CO NO. 04/PUN/2017 / ORDER PER VIKAS AWASTHY, JM : TH E APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ASSESSMENT ORDER DATED 26 - 02 - 2015 PASSED U/S. 144C(13) O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR THE ASSESSMENT YEAR 2006 - 07. THE ASSESSEE HAS FILED CROSS OBJECTIONS IN THE APPEAL. 2. SHRI DANESH BAFNA APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF CBDT CIRCULAR NO. 21/2015, DATED 10 - 12 - 2015 . 3. SHRI AVADHESH KUMAR REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN ` 10 LAKHS. 4. BOTH SIDES HEARD. IN APPEAL THE REVENUE HAS ASSAILED THE FINDINGS OF DISPUTE RESOLUTION PANEL IN HOLDING RE - OPENING OF ASSESSMENT AS BAD IN LAW AND TERMING THE SAME TO BE INVALID. ON MERITS, THE ASSESSING OFFICER HAD MADE ADDITION OF RS.14,98,140/ - ON ACCOUNT OF INCOME FROM LICENSE FEE. ADMITTEDLY, THE TAX EFFECT INVOLVED IN APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT FOR FILING OF APPEAL BEF ORE TRIBUNAL. THE CBDT VIDE CIRCULAR NO. 21/2015, DATED 10 - 12 - 2015 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO ` 10 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE , AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. THUS, IN VIEW OF THE 3 ITA NO . 437/PUN/2015 & CO NO. 04/PUN/2017 CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. THE ASSESSEE HAS FILED CROSS OBJECTIONS. SINCE, THE APPEAL OF TH E DEPARTMENT HAS BEEN DISMISSED, THE CROSS OBJECTIONS FILED BY THE ASSESSEE HAVE BECOME INFRUCTUOUS AND ARE DISMISSED, AS SUCH. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AND CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 22 ND DAY OF MAY, 2017. SD/ - SD/ - ( / ANIL CHATURVEDI) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 22 ND MAY, 2017 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE DISPUTE RESOLUTION PANEL, PUNE 4 . THE DIT (TP/IT), PUNE 5 . , , , / DR, ITAT, B BENCH, PUNE. 6 . / GUARD FILE. / / // TRUE COPY// / BY ORDER, / ASSISTANT REGISTRAR, , / ITAT, PUNE