Sandvik Systems Development AB., Pune V. Deputy Director of Income-tax,

CO 8/PUN/2015

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2571 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 10 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-09-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 06-04-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMOL KAMAT
• Assessee Lawyers: DANESH BAFNA
• Keywords: Tax effect; Condonation of delay

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , ! , # $ BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.126/PN/2014 #& & / ASSESSMENT YEAR : 2005-06 DDIT (INTERNATIONAL TAXATION) - II, PUNE . / APPELLANT V/S SANDVIK SYSTEMS DEVELOPMENT AB, C/O. SANDVIK ASIA PVT. LTD., MUMBAI PUNE ROAD, DAPODI, PUNE 411 012 PAN : AAHCS7485H . / RESPONDENT . / ITA NO.127/PN/2014 #& & / ASSESSMENT YEAR : 2005-06 DDIT (INTERNATIONAL TAXATION) - II, PUNE . / APPELLANT V/S AB SANDVIK MATERIALS TECHNOLOGY C/O. SANDVIK ASIA PVT. LTD., MUMBAI PUNE ROAD, DAPODI, PUNE 411 012 PAN :AADCA5374K . / RESPONDENT C.O. NO.08/PN/2015 (ARISING OUT OF ITA NO.126/PN/2014) #& & / ASSESSMENT YEAR : 2005-06 SANDVIK SYSTEMS DEVELOPMENT AB, C/O. SANDVIK ASIA PVT. LTD., MUMBAI PUNE ROAD, DAPODI, PUNE 411 012 PAN/GIR NO. AADCA5375J/AADCA5374K/AAHCS7485H . / APPELLANT V/S DDIT (INTERNATIONAL TAXATION) - II, PUNE . / RESPONDENT 2 ITA NOS.126 & 127/PN/2014 AND CO NOS. 08 & 09/PN/2015 C.O. NO.09/PN/2015 (ARISING OUT OF ITA NO.127/PN/2014) #& & / ASSESSMENT YEAR : 2005-06 AB SANDVIK MATERIALS TECHNOLOGY C/O. SANDVIK ASIA PVT. LTD., MUMBAI PUNE ROAD, DAPODI, PUNE 411 012 PAN :AADCA5374K . / APPELLANT V/S DDIT (INTERNATIONAL TAXATION) - II, PUNE . / RESPONDENT ASSESSEE BY : SHRI DANESH BAFNA REVENUE BY : SHRI AMOL KAMAT (CIT) / ORDER PER VIKAS AWASTHY, JM : THESE APPEALS BY THE DEPARTMENT IN CASE OF TWO ASSESSE ES ARE DIRECTED AGAINST THE DIRECTIONS OF DISPUTE RESOLUTION PANEL, PUNE DATED 06-09-2013 FOR THE ASSESSMENT YEAR 2005-06. THE DRP VIDE SINGLE ORDER DISPOSED OF THE OBJECTIONS OF BOTH THE ASSESSEES. 2. THE ASSESSEES ALSO HAVE FILED CROSS OBJECTIONS IN THEIR RESPECTIVE CASES. THE CROSS OBJECTIONS ARE TIME BARRED BY 142 DAYS. THE ASSESSEES HAVE FILED PETITION FOR CONDONATION OF DELAY IN FILING OF THE CROSS OBJECTIONS. AFTER PERUSAL OF THE SAME, WE ARE SATISFIED THAT THE DELAY IN FILING OF THE CROSS OBJECTIONS IS NOT WILLFUL OR DELIB ERATE. THE DELAY HAS OCCURRED FOR THE REASONS STATED IN THE P ETITION SUPPORTED BY AN AFFIDAVIT. THE DELAY OF 142 DAYS IN FILING OF THE CROSS OBJECTIONS IN BOTH THE APPEALS IS CONDONED. THE CROSS O BJECTIONS ARE ADMITTED FOR ADJUDICATION AND ARE DISPOSED OF ON MERITS. / DATE OF HEARING :15.11.2016 / DATE OF PRONOUNCEMENT: 16.11.2016 3 ITA NOS.126 & 127/PN/2014 AND CO NOS. 08 & 09/PN/2015 3. SHRI DANESH BAFNA APPEARING ON BEHALF OF THE ASSESSEES SUBMITTED AT THE OUTSET THAT IN VIEW OF RECENT CBDT CIRCU LAR NO.21/2015 DATED 10-12-2015, BOTH THE APPEALS FILED BY TH E DEPARTMENT ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TA X EFFECT. IN ITA NO.126/PN/2014 THE AMOUNT INVOLVED IS RS.28,11,781/ - AND IN ITA NO.127/PN/2014 THE ADDITION MADE BY ASSESSING OFFICE R IS RS.19,41,100/-. 4. SHRI AMOL KAMAT REPRESENTING THE DEPARTMENT FAIRLY ADM ITTED THAT THE TAX EFFECT IN BOTH THE APPEALS IS LESS THAN RS.10 LAKHS. 5. BOTH SIDES HEARD, ORDERS OF THE AUTHORITIES BELOW PERUS ED. THE ADDITION IN ITA NO.126/PN/2014 IS RS.28,11,781/- AND IN ITA NO.127/PN/2014 THE ADDITION IS RS.19,41,100/-. THUS, THE TAX EFFECT IN BOTH THE APPEALS IS LESS THAN RS.10 LAKHS. THE CBDT VID E CIRCULAR NO.21/2015 DATED 10-12-2015 HAS INCREASED THE MONETAR Y LIMIT OF TAX EFFECT FOR FILING OF APPEALS BEFORE THE TRIBUNAL TO RS.10 LAK HS. IN THE PRESENT CASES THE ASSESSEES CHALLENGED THE REOPEN ING OF ASSESSMENT AS WELL AS ADDITION ON MERITS BEFORE THE DRP. THE DRP VIDE IMPUGNED ORDER, COMMON FOR BOTH THE ASSESSEES ACCE PTED THE OBJECTIONS OF ASSESSEES AND HELD THE REOPENING AS INVALID. THE CBDT CIRCULAR (SUPRA) APPLIES TO THE COMPOSITE ORDER/ JUDGMENT WHERE MORE THAN ONE ASSESSEE IS INVOLVED. THE RELEVANT EXTRACT OF THE CBDT CIRCULAR IN THIS REGARD READS AS UNDER : 5. THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFEC T SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED ISSUES IN T HE CASE OF EVERY ASSESSEE; IF, IN THE CASE OF AN ASSESSEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT YEAR, APPEAL, CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN. WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EXCEEDS THE MONETARY LIMIT SPECIFIED IN PARA 3. NO APPEAL. SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR O R YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT SPECIFIE D IN PARA 3. IN 4 ITA NOS.126 & 127/PN/2014 AND CO NOS. 08 & 09/PN/2015 OTHER WORDS, HENCEFORTH, APPEALS CAN BE FILED ONLY WI TH REFERENCE TO THE TAX EFFECT IN THE RELEVANT ASSESSMENT YEAR. HOWEVER , IN CASE OF A COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHO RITY, WHICH INVOLVES MORE THAN ONE ASSESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, APPEAL SHALL BE FILED IN RESPEC T OF ALL SUCH ASSESSMENT YEARS EVEN IF THE 'TAX EFFECT' IS LESS THAN THE PRESCRIBED MONETARY LIMITS IN ANY OF THE YEAR(S), IF IT IS DECIDE D TO FILE APPEAL IN RESPECT OF THE YEARS IN WHICH 'TAX EFFECT' EXCEEDS THE MONETARY LIMIT PRESCRIBED. IN CASE WHERE A COMPOSITE ORDER/JUDGMENT I NVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEPARATE LY. 6. IN VIEW OF THE ABOVE SAID CBDT CIRCULAR WHERE THE TAX EFFECT IS LESS THAN RS.10 LAKHS IN THE APPEALS FILED BY THE REVENUE AND ARE PENDING FOR FINAL ADJUDICATION, THE APPEALS OF THE REVENUE AR E LIABLE TO BE DISMISSED. THE TAX EFFECT IN THE PRESENT SET OF APP EALS FILED BY THE REVENUE IS ADMITTEDLY LESS THAN RS.10 LAKHS IN EACH C ASE, THEREFORE, IN VIEW OF THE INSTRUCTIONS OF CBDT AND THE ENT IRETY OF FACTS, WE DISMISS THE APPEALS FILED BY THE REVENUE AS NOT MAINTAINABLE. 7. SINCE THE APPEALS OF THE DEPARTMENT HAVE BEEN DISMISS ED THE CROSS OBJECTIONS FILED BY THE ASSESSEES HAVE BECOME INFRU CTUOUS AND ARE DISMISSED AS SUCH. 8. IN THE RESULT, BOTH THE APPEALS OF THE DEPARTMENT AN D THE CROSS OBJECTIONS BY THE ASSESSEES ARE DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 16 TH DAY OF NOVEMBER, 2016. SD/- SD/- (R.K. PANDA) (VIKAS AWASTHY) / ACCOUNTANT MEMBER # / JUDICIAL MEMBER / PUNE ; DATED : 16 TH NOVEMBER, 2016 . SATISH 5 ITA NOS.126 & 127/PN/2014 AND CO NOS. 08 & 09/PN/2015 ) *#,! -! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. CIT(A) ,IT/TP , PUNE 4. CIT, IT/TP, PUNE 5. ' %%& , & , / DR, ITAT, B PUNE; 6. + / GUARD FILE. / BY ORDER , // TRUE COPY // //TRUE COPY// -. % & / SR. PRIVATE SECRETARY & , / ITAT, PUNE