AJAY GUPTA HUF, MUMBAI V. DCIT CC 7(4), MUMBAI

CO 86/MUM/2016

• Counselvise Citation: [2016] 123 COUNSELVISE.COM (IT) 2648 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 20-12-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 20-12-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 08-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: YESHWANT V CHAVAN
• Assessee Lawyers: R C JAIN
• Keywords: Retrospective amendment; Tax effect

Judgement Text

I IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ./ I.T.A. NO. 1827 /MUM/2016 & 1828/MUM/2016 ( / ASSESSMENT YEAR : 2006-07 AND 2007-08) DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 7(4), R.NO. 659,6 TH FLOOR, AAYAKARBHAWAN,M K ROAD, MUMBAI-400020 / V. AJAY GUPTA(HUF) 301-A, MITHILA APARTMENT, J B NAGAR, ANDHERI(E), MUMBAI-400059 ./ PAN : AAHHA0217J ( / APPELLANT ) .. ( / RESPONDENT ) CO. NO. 86/MUM/ 2016 AND 87/MUM/2016 ARISING OUT OF APPEALS ./ I.T.A. NO. 1827 /MUM/2016 & 1828/MUM/2016 ( / ASSESSMENT YEAR : 2006-07 AND 2007-08) AJAY GUPTA(HUF) 301-A, MITHILA APARTMENT, J B NAGAR, ANDHERI(E), MUMBAI-400059 / V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-7(4), R.NO. 659,6 TH FLOOR, AAYAKARBHAWAN,M K ROAD, MUMBAI-400020 ./ PAN : AAHHA0217J ( / APPELLANT ) .. ( / RESPONDENT ) REVENUE BY SH YESHWANT V . CHAVAN, CIT DR ASSESSEE BY : SH. R.C.JAIN / DATE OF HEARING : 20-12-2016 / DATE OF PRONOUNCEMENT : 20-12-2016 / O R D E R ITA 1827/MUM/2016 & 1828/MUM/2016 CO 86/MUM/2016 & 87/MU M/2016 2 PER BENCH : THESE TWO APPEAL FILED BY THE REVENUE ARE DISPOSED OF BECAUSE THE TAX EFFECT IN BOTH THESE APPEALS IS LESS THAN RS. 10 LA CS AS PER THE LATEST CBDT CIRCULAR NO. 21/2015, F. NO. 279/MISC.142/2007-ITJ (PT) DATED 10 TH DECEMBER, 2015 ISSUED BY CENTRAL BOARD OF DIRECT TA XES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA. 2. THE LD. D.R. SUBMITTED THAT TAX EFFECT INVOLVED IN THESE TWO APPEALS IS LESS THAN RS. 10 LACS AND THE CBDT CIRCULAR NO. 21/ 2015 IS APPLICABLE TO THESE APPEAL AND THE APPEAL IS NOT MAINTAINABLE/NOT PRESSED IN TERMS OF CBDT CIRCULAR NO 21/2015 DATED 10/12/2015. THE LD. DR SUBMITTED THAT AS PER THE LATEST CBDT CIRCULAR NO. 21/2015, F. NO. 27 9/MISC.142/2007-ITJ (PT) DATED 10 TH DECEMBER, 2015 ISSUED BY CENTRAL BOARD OF DIRECT T AXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNM ENT OF INDIA, NO APPEAL SHALL BE FILED BY THE REVENUE IN RESPECT OF AN ASSE SSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMI T SPECIFIED IN PARA 3 OF THE CIRCULAR PARA 3 OF THE CIRCULAR NO. 21/2015 S NO. APPEALS IN INCOME TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/- 2 BEFORE HIGH COURT 20,00,000/- 3 BEFORE SUPREME COURT 25,00,000/- IN THE SAID CIRCULAR VIDE PARA 10, IT IS STIPULATE D THAT THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEAL S TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE S PECIFIED TAX LIMITS IN MAY BE WITHDRAWN/NOT PRESSED. ITA 1827/MUM/2016 & 1828/MUM/2016 CO 86/MUM/2016 & 87/MU M/2016 3 3. KEEPING IN VIEW THE CBDT CIRCULAR NO. 21/2015 DA TED 10 TH DECEMBER, 2015 WHICH IS APPLICABLE FROM RETROSPECTIVE EFFECT AND IS ALSO APPLICABLE TO PENDING APPEALS AND ALSO IN VIEW OF LD. DR STATING BEFORE US THAT THESE TWO APPEALS ARE NOW NOT MAINTAINABLE/NOT PRESSED IN VIE W OF THE ABOVE CBDT CIRCULAR, WE HOLD THAT THESE TWO APPEALS FILED BY T HE REVENUE WHICH IS COVERED BY THIS ORDER INVOLVING TAX EFFECT LESS TH AN RS. 10 LACS ARE NOT MAINTAINABLE AND ARE DISMISSED BEING NOT PRESSED. WE HAVE NOT COMMENTED ON MERITS OF THE APPEALS. HOWEVER, THE REVENUE IS A T LIBERTY TO FILE AN APPLICATION FOR RECALL OF THESE APPEAL IN ACCORDANC E WITH LAW, IF AT ANY STAGE REVENUE WANTS TO AGITATE THE MATTER IN ACCORDANCE W ITH THE PROVISIONS/CLAUSES AS CONTAINED IN THE AFORE-STATED CIRCULAR. WE ORDER ACCORDINGLY. 4. THE ASSESSEE HAS RAISED CROSS OBJECTIONS AGAINST BOTH THE REVENUES APPEALS. SINCE THE REVENUE APPEALS ARE DISMISSED DU E TO LOW TAX EFFECT AS DETAILED IN PRECEDING PARAS OF THIS ORDER. THE LEA RNED AR OF THE ASSESSEE CONCEDED THAT THESE CO BE ALSO DISMISSED AS NOT PRE SSED. HOWEVER, THE LEARNED COUNSEL FOR THE ASSESSEE WOULD CONTEND THAT THAT THE ASSESSEE HAS RAISED AN ADDITIONAL GROUND W.R.T. NON-RECODING OF SATISFACTION BY THE REVENUE BEFORE INVOKING SECTION 153C OF THE ACT AGAINST THE ASSESSEE AND THE CO BE DISMISSED WITHOUT PREJUDICE TO THIS LEGAL GROUND WH ICH GOES TO THE ROOT OF THE MATTER. THE LD DR FAIRLY AGREED TO THE SAME AS THE ASSESSEE HAS RAISED THIS LEGAL GROUND IN OTHER ASSESSMENT YEARS WHICH ARE IN APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PER USED THE MATERIAL ON RECORD. SINCE THE APPEALS OF THE REVENUE ARE ALREAD Y DISMISSED BY US DUE TO LOW TAX EFFECT BEING COVERED BY AFORE-STATED CBDT C IRCULAR WITHOUT GOING INTO THE MERITS OF THE CASE. WE ARE INCLINED TO DISMISS BOTH THE COS FILED BY THE ASSESSEEE AS NOT PRESSED WITHOUT COMMENTING ON ME RITS AS THE LEARNED ITA 1827/MUM/2016 & 1828/MUM/2016 CO 86/MUM/2016 & 87/MU M/2016 4 COUNSEL FOR THE ASSESSEE HAS CONCEDED BEFORE US THA T THE SAME HAS NOW BECOME INFRUCTUOUS AND ARE NOT PRESSED. HOWEVER , W HILE DISMISSING BOTH THESE COS WE HAVE NOT COMMENTED ON THE MERITS OF I SSUES/ GROUNDS RAISED BY THE ASSESSEE AND LEGAL ISSUE REGARDING NON-RECOR DING OF SATISFACTION BY THE REVENUE BEFORE INVOKING SECTION 153C OF THE ACT IS KEPT OPEN. SIMILAR LIBERTY IS GIVEN TO THE ASSESSEE TO RECALL CO IN CASE REVEN UE DECIDES TO RECALL ITS APPEALS AS CONCESSION GRANTED BY US TO REVENUE IN P RECEDING PARAS OF THIS ORDER. WE ORDER ACCORDINGLY. 6. IN THE RESULT, THE BOTH THE APPEALS FILED BY THE REVENUE ARE DISMISSED. SIMILARLY , BOTH THE COS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER 2016. # $% &' 20-12-2016 ( ) SD/- SD/- (SAKTIJIT DEY) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER $ MUMBAI ; & DATED 20-12-2016 [ !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. 9 ( ) / THE CIT(A)- CONCERNED, MUMBAI 4. 9 / CIT- CONCERNED, MUMBAI 5. <=( >>?@ , ?@ , $ / DR, ITAT, MUMBAI H BENCH 6. (BC D / GUARD FILE. / BY ORDER, < > //TRUE COPY// / ( DY./ASSTT. REGISTRAR) , $ / ITAT, MUMBAI