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

CO 83/PUN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9822 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 6 month(s) 9 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 04-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-04-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 25-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER WTA NOS.43 & 44/PUN2017 / ASSESSMENT YEARS : 2008-09 & 2009-10 ACWT, CENTRAL CIRCLE-1, NASHIK VS. SHUBHASHANI CONSTRUCTION PVT. LTD., 37-39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI 400 001 PAN : AACCS2498B (APPELLANT) (RESPONDENT) C.O. NOS.83 & 84/PUN/2017 (ARISING OUT OF WTA NOS. 43 & 44/PUN/2017 / ASSESSMENT YEARS : 2008-09 & 2009-10 SHUBHASHANI CONSTRUCTION PVT. LTD., 37-39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI 400 001 PAN : AACCS2498B VS. ACWT, CENTRAL CIRCLE-1, NASHIK CROSS OBJECTOR APPELLANT IN THE APPEAL ASSESSEE BY WRITTEN SUBMISSION RESPONDENT BY SHRI SUDHENDU DAS DATE OF HEARING 04-04-2019 DATE OF PRONOUNCEMENT 04-04-2019 SHUBHASHANI CONSTRUCTION PVT. LTD., A.YRS. 2008-09 & 2009-10 2 / ORDER PER R.S.SYAL, VP : THIS BATCH OF FOUR APPEALS COMPRISES OF 2 CROSS APPEALS IN RELATION TO THE ASSESSMENT YEARS 2008-09 AND 2009-10. TH E IMPUGNED ORDERS HAVE BEEN PASSED U/S. 16(3) R.W.S. 1 7 OF THE WEALTH TAX ACT, 1957 (IN SHORT THE ACT). 2. THE ASSESSEE FILED WRITTEN SUBMISSIONS STATING THAT THE APPEALS OF THE REVENUE ARE LIABLE TO BE DISMISSED ON ACCOU NT OF LOW TAX EFFECT IN VIEW OF CIRCULAR NO. 5/2019 DATED 05-02-2 019 READ WITH CBDT CIRCULAR NO. 3/2018, DATED 11-07-2018. T HE ASSESSEE HAS FURTHER SUBMITTED IN WRITING THAT THE DEPARTMENT SHOULD WITHDRAW THE APPEALS IF THE TAX EFFECT INVOLVED IS LESS THAN RS.20.00 LAKH. 3. LD. DR FAIRLY CONCEDED THAT IN THE PRESENT SET OF APPEA LS BY THE DEPARTMENT, TAX EFFECT IS LESS THAN RS.20 LAKHS. 4. AFTER HEARING THE LD. DR AND CONSIDERING THE FACTS IN THE EXTANT APPEALS, WE FIND THAT THE CBDT VIDE EARLIER CIRCULAR NO.3/2018 (SUPRA) HAS PRESCRIBED THE MONETARY LIMITS FOR F ILING OF APPEALS BY THE DEPARTMENT BEFORE THE APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND SLPS/APPEALS BEFORE THE HONBLE SHUBHASHANI CONSTRUCTION PVT. LTD., A.YRS. 2008-09 & 2009-10 3 SUPREME COURT OF INDIA. AS PER PARA 11 OF SAID CIRCULAR , IT HAS BEEN SPECIFIED THAT MONETARY LIMIT IN PARA 3 SHALL NOT APPLY TO WRIT MATTERS AND DIRECT TAX MATTERS OTHER THAN INCOME TAX AND FILING OF APPEALS IN SUCH CASES SHALL CONTINUE TO BE GOVERNE D BY RELEVANT PROVISIONS OF STATUTE AND RULES. THE CBDT VIDE CIRCULAR NO. 5/2019 (SUPRA) CLARIFIED THAT SINCE THERE IS NO C HARGE UNDER WEALTH TAX ACT, 1957 W.E.F. 01.04.2016, 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 (NO. 3/2018) SHALL ALSO APPLY 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 CIRCU LAR 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. SHUBHASHANI CONSTRUCTION PVT. LTD., A.YRS. 2008-09 & 2009-10 4 5. IN VIEW OF EXTENSION OF CIRCULAR TO WEALTH TAX APPEALS COMING INTO EFFECT, WHICH IS APPLICABLE TO PENDING APPEALS, THE PRESENT APPEALS FILED BY THE REVENUE BEFORE THE TRIBUNAL AR E LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. THEREFO RE, WITHOUT GOING INTO MERITS OF THE ADDITIONS MADE IN THE HANDS O F ASSESSEE, WE DISMISS THE APPEALS FILED BY REVENUE. THE CROSS OBJECTIONS FILED BY ASSESSEE AGAINST APPEALS FILED BY THE REVE NUE HAVE THUS BECOME INFRUCTUOUS AND ARE DISMISSED ACCORDINGLY . 6. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL B E AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEALS WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEALS ARE PROTECTED B Y THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR NO. 3/20 18 (SUPRA) OR FOR ANY OTHER TENABLE REASON. 7. IN THE RESULT, APPEALS BY THE REVENUE AND THE CROSS OBJECTIONS BY THE ASSESSEES ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH APRIL 2019. SD/- SD/- (VIKAS AWASTHY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESID ENT PUNE; DATED : 04 TH APRIL, 2019 SHUBHASHANI CONSTRUCTION PVT. LTD., A.YRS. 2008-09 & 2009-10 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-12, PUNE 4. 5. THE PR. CWT, CENTRAL, NAGPUR , , B / DR B, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 04-04-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04-04-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *