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

CO 96/PUN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9392 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 4 month(s) 25 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-04-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 08-11-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHRI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, J UDICIAL MEMBER SL. NO. WTA NO./C.O. NO. NAME OF APPELLANT NAME OF RESPONDENT ASSTT. YEAR 1 - 2 81 & 82 /PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK INDIRA HORTICULTURE PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK - 422001 PAN : AABCI3168B 2008 - 09 2009 - 10 3 - 4 C.O. NO S. 99 & 100 /PUN/2017 INDIRA HORTICULTURE PVT. LTD., 7, THAKKERS, NEAR NEHRU G ARDEN, NASHIK - 422001 PAN : AABCI3168B ACWT, CENTRAL CIRCLE 1, NASHIK 2008 - 09 2009 - 10 5 79/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK LAKSHA MARKETING PVT. LTD., 16, SARAS VIHAR, KATHE LANE, DWARKA, NASHIK - 422011 PAN : AAACL1693B 2011 - 12 6 C.O. NO. 98 /PUN/2017 LAKSHA MARKETING PVT. LTD., 16, SARAS VIHAR, KATHE LANE, DWARKA, NASHIK - 422011 PAN : AAACL1693B ACWT, CENTRAL CIRCLE 1, NASHIK 2011 - 12 7 77/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK SURBHI HORTICULTURE PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STR EET, FORT, MUMBAI - 400001 PAN : AACCS7792J 2010 - 11 8 C.O. NO. 94/PUN/2017 SURBHI HORTICULTURE PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AACCS7792J ACWT, CENTRAL CIRCLE 1, NASHIK 2010 - 11 2 WTA GROUP CASES 9 - 14 15 TO 20/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK NITU MARKETING PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AAACN5510H 2008 - 09 TO 2013 - 14 15 TO 20 C.O. NOS. 56 TO 61/PUN/2017 NITU MARKETING PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AAACN5510H ACWT, CENTRAL CIRCLE 1, NASHIK 2008 - 09 TO 2013 - 14 21 - 22 28 & 29/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. RUDRAKSHA BUILDERS PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AAACR7417D 2014 - 15 & 2015 - 16 23 - 24 74 & 75/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK MANOJ MARKETING PVT. LTD., 16, SARAS VIHAR, KATHE LANE, DWARKA, NASHIK - 422011 PAN : AAACM6844M 2008 - 09 & 2009 - 10 25 - 26 C.O. NOS. 96 & 97/PUN/2017 MANOJ MARKETING PVT. LTD., 16, SARAS VIHAR, KATHE LA NE, DWARKA, NASHIK - 422011 PAN : AAACM6844M ACWT, CENTRAL CIRCLE 1, NASHIK 2008 - 09 & 2009 - 10 27 - 28 71 & 72/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK ABHISHEK KUTIR NIRMAN PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AAACA8301R 2008 - 09 & 2009 - 10 29 - 30 C.O. NOS. 92 & 93/PUN/2017 ABHISHEK KUTIR NIRMAN PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, ACWT, CENTRAL CIRCLE 1, NASHIK 2008 - 09 & 2009 - 10 3 WTA GROUP CASES FORT, MUMBAI - 400001 PAN : AAACA8301R 31 - 32 68 & 69/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK JASMINE MARKETING PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AABCJ4474H 2008 - 09 & 2009 - 10 33 - 34 C.O. NOS. 90 & 91/PUN/2017 JASMINE MARKETING PVT. LTD., 37 - 39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AAB CJ4474H ACWT, CENTRAL CIRCLE 1, NASHIK 2008 - 09 & 2009 - 10 35 - 36 34 & 35/PUN/2019 DCWT, CENTRAL CIRCLE 1, NASHIK M/S. SHUBHASHANI CONSTRUCTION PVT. LTD., 37/39, KANTOL NIWAS, MODI STREET, FORT, MUMBAI - 400001 PAN : AACCS2498B 2010 - 11 & 2011 - 12 37 - 38 39 & 40/PUN/2017 ACWT, CENTRAL CIRCLE 1, NASHIK ASHADEEP HORTICULTURE PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK - 422001 PAN : AABCA3332P 2008 - 09 & 2009 - 10 39 - 40 C.O. NOS. 79 & 80/PUN/2017 ASHADEEP HORTICULTURE PVT. LTD., 7, THAKKERS, NEAR NEHRU GARDEN, NASHIK - 422001 PAN : AABCA3332P ACWT, CENTRAL CIRCLE 1, NASHIK 2008 - 09 & 2009 - 10 ASSESSEE BY : SHRI NIKHIL PATHAK REVENUE BY : SHRI PANKAJ GARG / DATE OF HEARING : 03 - 04 - 2019 / DATE OF PRONOUN CEMENT : 03 - 04 - 2019 4 WTA GROUP CASES / ORDER PER BENCH : T H ESE BUNCH OF APPEALS BY THE REVENUE ARE FILED AGAINST THE ORDERS OF COMMISSIONER OF WEALTH TAX (APPEALS) IN THE CASE OF RESPECTIVE ASSESSEES FOR THE ASSESSMENT YEARS MENTIONED IN THE TITLE AGAINST THE NAM E OF EACH OF THE ABOVEMENTIONED ASSESSEES. THE IMPUGNED ORDERS HAVE BEEN PASSED U/S. 16(3) R.W.S. 17 OF THE WEALTH TAX ACT, 1957 (IN SHORT THE ACT). THE RESPECTIVE ASSESSEES HAVE PREFERRED CROSS OBJECTIONS AGAINST EACH OF THE APPEALS FILED BY THE REVEN UE. 2. SHRI NIKHIL PATHAK APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL S OF THE REVENUE ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF CBDT CIRCULAR NO. 3/2018, DATED 11 - 07 - 2018. THE LD. AR OF THE ASSES SEE POINTED THAT VIDE RECENT CIRCULAR NO. 5/2019 DATED 05 - 02 - 2019 THE SCOPE OF CIRCULAR NO. 3/2018 (SUPRA) HAS BEEN EXTENDED TO WEALTH TAX APPEALS FILED BY THE DEPARTMENT. THE LD. AR FURTHER CONTENDED THAT THE ASSESSEES HAVE FILED CROSS OBJECTIONS IN THE APPEALS FILED BY THE DEPARTMENT. ALL THE CROSS OBJECTIONS WOULD BECOME INFRUCTUOUS IF THE APPEALS BY THE DEPARTMENT ARE DISMISSED. 3. SHRI PANKAJ GARG REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT IN THE PRESENT SET OF APPEAL S BY THE DEPARTMENT , TA X EFFECT IS LESS THAN RS.20 LAKHS. 4. BOTH SIDES HEARD. THE CBDT VIDE EARLIER CIRCULAR NO.3/2018 (SUPRA) HAD PRESCRIBED THE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE APPELLATE TRIBUNAL, HONBLE HIGH COURTS AND 5 WTA GROUP CASES SLPS/ A PPEALS BEFORE THE HONBLE SUPREME COURT OF INDIA . AS PER PARA 11 OF SAID CIRCULAR, IT WAS SPECIFIED THAT MONETARY LIMIT IN PARA 3 SHALL NOT APPLY TO WRIT MATTERS AND D IRECT TAX MATTERS OTHER THAN I NCOME TAX AND FILING OF APPEALS IN SUCH CASES SHALL CONTINUE TO BE GOVE RNED BY RELEVANT PROVISIONS OF S TATUTE AND RULES. THE CBDT VIDE CIRCULAR NO. 5/2019 (SUPRA) CLARIFIED THAT SINCE THERE IS NO CHARGE 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 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 CHARGEA BLE 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 C ASE 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. 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 ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT . THEREFORE, WITHOUT GOING INTO MER ITS OF THE ADDITIONS MADE IN THE HANDS OF ASSESSEE, WE DISMISS THE APPEALS FILED BY REVENUE . THE CROSS OBJECTIONS FILED BY ASSESSEE AGAINST APPEALS FILED BY THE REVENUE HAVE BECOME INFRUCTUOUS AND ARE DISMISSED ACCORDINGLY. 6 WTA GROUP CASES 6. BEFORE PARTING, WE CLARIF Y HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR NO. 3/2018 (SUPRA). 7. IN THE RESULT, APPEALS BY THE REVENUE AND THE CROSS OBJECTIONS BY THE ASSESSEES ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 03 RD DAY OF APRIL, 2019. SD/ - SD/ - (R.S. SYAL) (VIKAS AWASTHY) VICE PRES IDENT JUDICIAL MEMBER / PUNE; / DATED : 03 RD APRIL, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CWT (A), CONCERNED 4. THE CWT CONCERNED 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE