Diwakar Farms Private Limited, Mumbai V. Assistant Commissioner of Wealth-tax, Central Circle - 1, Nashik

CO 54/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9798 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-04-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 28-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJEEV GHEI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE , ! ,# $ BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVE DI, AM SL. NO. WTA NO./C.O. NO. NAME OF APPELLANT NAME OF RESPONDENT ASSTT. YEAR 1 & 2 13 & 14/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK DIWAKAR FARMS PVT. LTD. 37-39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI 400 001 PAN : AAACD4039K 2008-09 2009-10 3 & 4 C.O. NOS. 54 & 55/ PUN/2017 DIWAKAR FARMS PVT. LTD. 37-39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI 400001 PAN : AAACD4039K ACWT, CENTRAL CIRCLE 1, NASHIK 2008-09 2009-10 5 67/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK MEERA AGRICULTURE & MARKETING PVT. LTD. 37-39, KANTOL NIWAS, MODI STEET, FORT, MUMBAI 400001 PAN :AABCM0754F 2010-11 6 C.O. NO. 106/PUN/ 2017 MEERA AGRICULTURE & MARKETING PVT. LTD. 37-39, KANTOL NIWAS, MODI STEET, FORT, MUMBAI 400001 PAN :AABCM0754F ACWT, CENTRAL CIRCLE 1, NASHIK 2010-11 7 70/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK MAHALAXMI TRAVELS PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK 422001. PAN :AABCM0558P 2008-09 8 C.O. NO. 95/PUN/ 2017 MAHALAXMI TRAVELS PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK 422001. PAN : AABCM0558P ACWT, CENTRAL CIRCLE 1, NASHIK 2008-09 2 WTA GROUP CASES 9 & 10 10 & 11/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK NITU MARKETING PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400001 PAN : AAACN5510H 2014-15 2015-16 11 & 12 12 & 13/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. GAURAV DEVELOPERS PVT. LTD. 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400 001. PAN :AABCG1653M 2010-11 2011-12 13 & 14 14 & 15/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. KUMUDINI MARKETING PVT. LTD. 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400 001 PAN : AAACK3948A 2012-13 2013-14 15 & 16 16 & 17/PUN/ 2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S.ASHADEEP HORTICULTURE PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK-422001 PAN : AABCA3332P 2010-11 2011-12 17 18/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. THAKKERS DEVELOPERS PVT. LTD. 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400 001. PAN :AAACT1513E 2008-09 18 TO 21 19 TO 22/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. J.M. THAKKER DEVELOPERS PVT. LTD. 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400 001. PAN :AAACJ7917Q 2008-09 2009-10 2010-11 2011-12 22 23/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. INDIRA HORTICULTURE PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK-422001 PAN : AABCI3168B 2010-11 23 & 24 24 & 25/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. MANOJ MARKETING PVT. LTD., 16, SARAS VIHAR SOCIETY, BEHIND BANKAR SCHOOL, KATHE LANE, NASHIK-422011 PAN : AAACM6844M 2010-11 2011-12 3 WTA GROUP CASES 25 & 26 26 & 27/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. NIMANTRAN HORTICULTURE PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400 001. PAN : AAACN5046Q 2014-15 2015-16 27 & 28 30 & 31/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. LOVELY MARKETING PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400001 PAN : AAACL2769E 2010-11 2011-12 29 & 30 32 & 33/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. MAHALAXMI TRAVELS PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK 452001 PAN :AABCM0558P 2010-11 2011-12 31 & 32 1 & 2/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. GAJANAN FARM PVT. LTD. 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400001 PAN : AAACG3924G 2008-09 2009-10 33 & 34 3 & 4/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. ABHISHEK KUTIR NIRMAN PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400001 PAN : AAACA8301R 2010-11 2011-12 35 & 36 5 & 6/PUN/ 2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. INTRA COMMUNICATIONS PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400001 PAN : AAACI2388C 2010-11 2011-12 37 7/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. JASMINE MARKETING PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI-400001 PAN : AABCJ4474H 2010-11 38 36/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. VISHWAS FARM PVT. LTD., 215, LAMBA BUILDING, HINDUJA COLONY, SIR BHALCHANDRA ROAD, MATUNGA (E), MUMBAI - 400019 PAN : AABCV3486B 2010-11 4 WTA GROUP CASES 39 37/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. SHUBHKAMNA BUILDERS PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK 422001. PAN :AABCS3542H 2014-15 40 38/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. PETAL HORTICULTURE PVT. LTD., 215, LAMBA BUILDING, HINDUJA COLONY, SIR BHALCHANDRA ROAD, MATUNGA (E), MUMBAI - 400019 PAN :AAACP9441R 2010-11 ASSESSEE BY : NONE REVENUE BY : SHRI SANJEEV GHEI & SHRI RAJESH GAWALI / DATE OF HEARING : 16-04-2019 / DATE OF PRONOUNCEMENT : 16-04-2019 / ORDER PER SUSHMA CHOWLA, JM: THIS BUNCH OF APPEALS FILED BY REVENUE ARE AGAINST SEPARAT E CONSOLIDATED ORDERS OF CWT(A)-12, PUNE RELATING TO DIFFERENT ASSESSEE FOR DIFFERENT ASSESSMENT YEARS FROM A.YS. 2008-09 TO 2010-11 AND IN SOME CASES A.YS. 2014-15 TO 2015-16 AGAINST RESPECTIVE ORDER S PASSED UNDER SECTION 16(3) R.W.S. 17 OF THE WEALTH-TAX ACT, 1957 (IN SHORT THE ACT). THREE ASSESSEE HAVE FILED CROSS OBJECTIONS AGAINST THE APPEALS OF REVENUE. 2. THIS BUNCH OF APPEALS FILED BY REVENUE ON SIMILAR ISSUE WA S HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FO R THE SAKE OF CONVENIENCE. 5 WTA GROUP CASES 3. THE ASSESSEES HAVE FILED SEPARATE LETTERS CONTENDIN G THAT THE APPEALS FILED BY REVENUE ARE NOT MAINTAINABLE IN VIEW OF LOW TAX EFFECT AS PRESCRIBED BY THE CBDT VIDE ITS LATEST CLARIFICATION DATED 05.02.2019. IT IS FURTHER STATED THAT THE CBDT HAS CLARIFIED THAT LIMIT PRESCRIBED FOR FILING THE APPEALS IN INCOME-TAX MATTERS IS ALSO TO BE APPLIED TO THE APPEALS FILED IN WEALTH TAX MATTERS BEFORE THE TRIBUNAL AND ALSO BEFORE TH E HIGH COURTS AND APEX COURT. IN THIS REGARD, COPY OF CBDTS CIRCULAR NO.5 /2019, DATED 05.02.2019 IS ENCLOSED. IT WAS ALSO POINTED OUT THAT IN A LL THE APPEALS BEFORE THE TRIBUNAL, TAX EFFECT WAS LESS THAN THE PRESCRIBE D LIMITS AND HENCE, THE APPEALS OF REVENUE ARE NOT MAINTAINABLE. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVE NUE FAIRLY CONCEDED TO THE PROPOSITION RAISED BY THE ASSESSEES AFT ER GOING THROUGH THE ASSESSED WEALTH IN THE HANDS OF EACH OF APPEALS BEFORE THE TRIBUNAL. 5. ON PERUSAL OF THE RECORD AND AFTER HEARING THE LEARNE D DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE IT TRANSPIRES THAT THE T AX ON NET WEALTH ASSESSED IN THE RESPECTIVE YEARS IS LESS THAN RS.20 LAKHS . THE ASSESSEES HAVE FILED THE DETAILS OF ASSESSED NET WEALTH AND THE WEALT H TAX THEREON FOR EACH OF THE RESPECTIVE YEARS AND WE HAVE PERUSED THE DETAILS WHICH ARE ENCLOSED ALONG WITH THE SEPARATE LETTERS FILED FOR EACH OF T HE ASSESSEE. SINCE THE TAX EFFECT IS LESS THAN THE PRESCRIBED LIMIT AS PER CIRC ULAR NO.3/2018 DATED 11.07.2018, THE PRESENT APPEALS WERE HEARD EX-PAR TE THE ASSESSEE ON THE BASIS OF WRITTEN SUBMISSION AND AFTER HEARING THE LEARN ED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE ARE BEING DISPOSED OF. 6 WTA GROUP CASES 6. THE CBDT VIDE EARLIER CIRCULAR NO.3/2018, DATED 11.07.2018 HAD PRESCRIBED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE D EPARTMENT BEFORE THE APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEA LS BEFORE SUPREME COURT. AS PER PARA 11 OF SAID CIRCULAR, IT WAS SP ECIFIED THAT MONETARY LIMIT IN PARA 3 SHALL NOT APPLY TO WRIT MATTERS A ND DIRECT MATTERS OTHER THAN INCOME TAX AND FILING OF APPEALS IN SUCH CASES S HALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF STATUTE AND RULES. HOWEVER, VIDE CIRCULAR NO.5/2019, DATED 05.02.2019, THE CBDT HAS RECOGNIZ ED VIDE PARA 2 THAT THERE IS NO CHARGE UNDER WEALTH TAX ACT, 1957 W.E.F. 01.04.2016 AND HENCE AS A STEP TOWARDS LITIGATION MANAGEMENT, THE BOARD HAS DECIDED THAT MONETARY LIMITS FOR FILING OF APPEALS IN INCOME TAX CASES AS P RESCRIBED IN PARA 3 OF THE CIRCULAR SHALL ALSO APPLY TO WEALTH TAX APPE ALS THROUGH EXTENSION OF CIRCULAR TO WEALTH TAX MATTERS IN MUTATIS MUTANDIS MANNER AND WITH MODIFICATIONS AS PRESCRIBED. FOR THE PURPOSE OF WEALTH TAX APPEALS, PARA 4 OF THE CIRCULAR SHALL NOW READ AS UNDER (AS PROVIDED IN THE CIRCULAR ):- 4. FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFER ENCE BETWEEN THE TAX ON NET WEALTH ASSESSED AND THE TAX THAT WOULD HAVE BEE N CHARGEABLE HAD SUCH NET WEALTH BEEN REDUCED BY THE AMOUNT OF WEALTH IN RESPECT OF THE ISSUES AGAINST WHICH APPEALS IS INTENDED TO BE FILED. HOW EVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEAB ILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CAS E OF PENALTY ORDERS, THE TAX EFFECT WILL REMAIN QUANTUM OF PENALTY DELETED OR RE DUCED IN THE ORDER TO BE APPEALED AGAINST. 7. IN VIEW OF EXTENSION OF CIRCULAR TO WEALTH TAX APPEALS CO MING INTO EFFECT, WHICH IS APPLICABLE TO PENDING APPEALS, THEN THE PRESE NT APPEALS FILED BY THE REVENUE BEFORE THE TRIBUNAL BECAUSE OF LOW TAX EFFECT, MERITS TO BE DISMISSED IN TOTO. SO, WITHOUT GOING INTO MERITS OF THE ADDITIONS MADE IN THE HANDS OF ASSESSEE, WE DISMISS THE APPEALS FILED BY REVE NUE FOR ALL THE YEARS IN RESPECT OF ALL THE ASSESSEES BEFORE US. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH T HE TRIBUNAL FOR 7 WTA GROUP CASES RE-INSTITUTION OF APPEAL, IF THE REQUISITE MATERIAL IS BROUGHT T O SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR (SUPRA). 8. FURTHER, THE CROSS OBJECTIONS FILED BY ASSESSEES AGAINST APPE ALS FILED BY THE REVENUE ARE NOT PRESSED AND HENCE, THE SAME A RE DISMISSED AS NOT PRESSED. 9. IN THE RESULT, ALL THE APPEALS OF REVENUE AND CROSS OB JECTIONS OF ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON THIS 16 TH DAY OF APRIL, 2019. SD/- SD/- ( ANIL CHATURVEDI ) ( SUSHMA CHOWLA ) # / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 16 TH APRIL, 2019 YAMINI &' ()*) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CWT (APPEALS)-12, PUNE. 4. THE PR.CWT, CENTRAL, NAGPUR. 5. !''#$ , % #$ , &'( , / DR, ITAT, A BENCH, PUNE. 6. !)*+, / GUARD FILE. % / BY ORDER, // TRUE COPY // '.#(/ PRIVATE SECRETARY, % #$ , / ITAT, PUNE