Lovely Marketing Pvt.Ltd, Mumbai V. Assistant Commissioner of Wealth-tax, Central Circle -1, Nashik

CO 81/PUN/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3249 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-02-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-08-2018
• Assessment Year: 2008-2009
• Appeal Filed On: 25-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR VIVEK AGARWAL
• Assessee Lawyers: SUNIL PATHAK; RAJENDRA BUNAGE
• Keywords: Tax effect
• Section: 6; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / WTA NO S . 41 & 42 /P U N/201 7 / ASSESSMENT YEAR S : 20 08 - 09 & 2009 - 10 THE ASST. COMMISSIONER OF WEALTH TAX, CENTRAL CIRCLE - 1, NASHIK . / APPELLANT VS. LOVELY MARKETING PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBA I 400001 . / RESPONDENT PAN: AAACL2769E . /CO NO S . 81 & 82 /PUN/201 7 / ASSESSMENT YEAR S : 2008 - 09 & 2009 - 10 (OUT OF WTA NOS.41 & 42/PUN/2017 ) LOVELY MARKETING PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI 400001 / CROSS OBJECT OR PAN: AAACL2769E VS. THE ASST. COMMISSIONER OF WEALTH TAX, CENTRAL CIRCLE - 1, NASHIK . / RESPONDENT . / WTA NO S . 45 TO 47 /P U N/201 7 / ASSESSMENT YEAR S : 2008 - 09 TO 2010 - 11 THE ASST. COMMISSIONER OF WEALTH TAX, CENTRAL CIRCLE - 1, NASHIK . / APPELLANT VS. NASHIK MARKETING PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI 400001 . / RESPONDENT PAN: AAAC N3158K W TA NO S . 41 & 42 /P U N/20 1 7 CO NOS.81 & 82/PUN/2 017 WTA NOS.45 TO 47/PUN/2017 CO NOS.85 TO 87/PUN/2017 2 . /CO NO S . 8 5 TO 87 /PUN/201 7 / ASSESSMENT YEAR S : 2008 - 09 TO 20 1 0 - 1 1 (OUT OF WTA NOS.4 5 TO 47 /PUN/2017 ) NASHIK MARKETING PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI 400001 / CROSS OBJECT OR P AN: AAACN3158K VS. THE ASST. COMMISSIONER OF WEALTH TAX, CENTRAL CIRCLE - 1, NASHIK . / RESPONDENT ASSESSEE BY : S/ SHRI SUNIL PATHAK & RAJENDRA BUNAGE RESPONDENT BY : S /S HRI RAJEEV KUMAR, CIT & DR. VIVEK AGARWAL / DATE OF HEARING : 21 . 02 .201 9 / DATE OF PRONOUNCEMENT: 2 7 . 0 2 .201 9 / ORDER PER SUSHMA CHOWLA, J M : T H IS BUNCH OF APPEAL S FILED BY REVENUE ARE AGAINST TWO SEPARATE CONSOLIDATED ORDER S OF C W T(A) - 1 2 , PUNE , BOTH DATED 02 . 06 .2 0 1 7 RELATING TO DIFFERENT ASSESSMENT YEAR S 2008 - 09 TO 2010 - 11 AGAINST RESPECTIVE ORDER S PASSED UNDER SECTION 1 6 ( 3 ) R.W.S. 17 OF THE WEALTH - TAX ACT , 19 57 (IN SHORT THE ACT) . THE ASSESSEE HAS FILED CROSS OBJECTIONS AGAINST THE APPEALS OF REVENUE. 2. THIS BUNCH OF APPEALS FILED BY REVENUE AND CROSS OBJECTIONS FILED BY ASSESSEE ON SIMILAR ISSUE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. W TA NO S . 41 & 42 /P U N/20 1 7 CO NOS.81 & 82/PUN/2 017 WTA NOS.45 TO 47/PUN/2017 CO NOS.85 TO 87/PUN/2017 3 3. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINT ED OUT 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 . HE FURTHER POINTED OUT THAT THE CBDT HAS CLARIFIED THAT LIMIT PRESCRIBED FOR FILING THE APPEA LS IN INCOME - TAX MATTERS IS ALSO TO BE APPLIED TO THE APPEALS FILED IN WEALTH TAX MATTERS BEFORE THE TRIBUNAL AND ALSO BEFORE THE HIGH COURTS AND APEX COURT. IN THIS REGARD, HE FILED COPY OF CBDTS CIRCULAR NO.5/2019, DATED 05.02.2019. HE ALSO POINTED OU T THAT IN ALL THE APPEALS BEFORE THE TRIBUNAL, TAX EFFECT WAS LESS THAN THE PRESCRIBED LIMITS AND HENCE, THE APPEALS OF REVENUE ARE NOT MAINTAINABLE. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE FAIRLY CONCEDED TO THE PROPOSITION RAISED BY THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE A FTER GOING THROUGH THE ASSESSED WEALTH IN THE HANDS OF EACH OF APPEALS BEFORE THE TRIBUNAL . 5. T HE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE FURTHER POINTED OUT THAT IN VIEW THEREOF, CROS S OBJECTIONS FILED BY ASSESSEE ARE NOT PRESSED. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE LOVELY MARKETING PVT. LTD. HAS FILED TWO APPEALS BEFORE US I.E. RELATING TO ASSESSMENT YEARS 2008 - 09 AND 2009 - 10. AS PER WEALTH T AX ASSESSMENT ORDER, THE NET WEALTH ASSESSED IN BOTH THE YEARS IS SAME I.E. ABOUT 1 CRORE, ON WHICH WEALTH TAX WORKS OUT TO 85,176/ - AND AFTER INCLUDING INTEREST OF 75,806/ - , TOTAL DEMAND RAISED IS 1,60,982/ - IN ASSESSMENT YEAR 2009 - 10 AND IN ASSESSMENT YEAR 2008 - 09 IS ONLY 85,176/ - . IN THE HANDS OF OTHER ASSESSEE I.E. NASHI K MARKETING PVT. LTD., THE ASSESSED NET WEALTH IS 35,24,070/ - IN W TA NO S . 41 & 42 /P U N/20 1 7 CO NOS.81 & 82/PUN/2 017 WTA NOS.45 TO 47/PUN/2017 CO NOS.85 TO 87/PUN/2017 4 ASSESSMENT YEAR 2008 - 09 AND 2009 - 10 AND WEALTH TAX CHARGED IS 20,241 AND 5,241/ - AND IN ASSESSMENT YEAR 2010 - 11 THE NET WEALTH ASSESSED IS 40,58,020/ - AND WEALTH TAX CHARGED IS 10, 580/ - . 7. THE CBDT VIDE EARLIER CIRCULAR NO.3/2018, DATED 11.07.2018 HAD PRESCRIBED THE MONETARY LIMIT S FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT . AS PER PARA 11 OF SAID CIRCU LAR, IT WAS SPECIFIED THAT MONETARY LIMIT IN PARA 3 SHALL NOT APPLY TO WRIT MATTERS AND DIRECT MATTERS OTHER THAN INCOME TAX AND FILING OF APPEALS IN SUCH CASES SHALL CONTINUE TO BE GOVERNED BY RELEVANT PROVISIONS OF STATUTE AND RULES. HOWEVER, VIDE CIRCU LAR NO.5/2019, DATED 05.02.2019, THE CBDT HAS RECOGNIZED 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 PRESCRIBED IN PARA 3 OF THE CIRCULAR SHALL ALSO APPL Y TO WEALTH TAX APPEALS 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 DIFFERENCE BETWEEN THE TAX ON NET WEALTH ASSESSED AND THE TAX THAT WOULD HAVE BEEN 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. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY 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 CASE OF PENALTY ORDERS, THE TAX EFFECT WILL REMAIN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 8. IN VIEW OF EXT ENSION OF CIRCULAR TO WEALTH TAX APPEALS COMING INTO EFFECT, WHICH IS APPLICABLE TO PENDING APPEALS, THEN THE PRESENT APPEALS FILED BY THE REVENUE BEFORE THE TRIBUNAL BECAUSE OF LOW TAX EFFECT, MERITS TO BE DISMISSED W TA NO S . 41 & 42 /P U N/20 1 7 CO NOS.81 & 82/PUN/2 017 WTA NOS.45 TO 47/PUN/2017 CO NOS.85 TO 87/PUN/2017 5 IN TOTO. SO, WITHOUT GOING INTO MERITS OF THE ADDITIONS MADE IN THE HANDS OF ASSESSEE, WE DISMISS THE APPEALS FILED BY REVENUE FOR ALL THE YEARS IN RESPECT OF BOTH THE ASSESSEE BEFORE US. FURTHER, THE CROSS OBJECTIONS FILED BY ASSESSEE AGAINST APPEALS FILED BY THE REVENUE ARE NOT PRESSED AND HENCE, THE SAME ARE DISMISSED AS NOT PRESSED. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RE - INSTITUTION OF APPEAL, IF THE REQUISITE MATERIAL IS BROUGHT TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCE PTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR (SUPRA). 9 . IN THE RESULT, ALL THE APPEALS OF REVENUE AND CROSS OBJECTIONS OF ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON THIS 27 TH DAY OF FEBRUARY , 201 9 . SD/ - SD/ - ( ANIL CHATURVEDI ) ( SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 27 TH FEBRUARY , 201 9 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. THE C W T (A) - 1 2 , PUNE ; 4. THE PR C W T , CENTRAL , NAGPUR ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE