ACIT CIR. 4(2)92), MUMBAI V. M/S KAUSHAL SILK MILLS PVT LTD., MUMBAI

ITA 1052/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5296 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2010-2011
• Appeal Filed On: 10-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURBINDER SINGH
• Assessee Lawyers: PRIYANKA SHARMA
• Keywords: Tax effect
• Section: 143(3); 13

Judgement Text

ITA NO.1052/MUM/2020 A.Y.2010 - 11 ACIT, CIR 4(2)(2) VS. M/S KAUSHAL SILK MILLS PVT. LTD. 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H MUMBAI BEFORE SHRI PRAMOD KUMAR (VICE PRESIDENT) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO.1052/MUM/2020 [ASSESSMENT YEAR: 2010 - 11] ACIT, CIR 4(2)(2), ROOM NO.640, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 VS. M/S KAUSHAL SILK MILLS PVT. LTD. 2A, JAI HIND ESTATE, DR. A.M. ROAD, BHULESHWAR, MUMBAI 400 002 PAN NO. AAACK1811G REVENUE ASSESSEE REVENUE BY : SHRI GURBINDER SINGH , D.R ASSESSEE BY : MS. PRIYANKA SHARMA , A.R DATE OF HEARING : 14/09 /2021 DATE O F PRONOUNCEMENT : 14 /09 /2021 ORDER PER RAVISH SOOD , J . M : THE PRESENT APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) - 9, MUMBAI, DATED 25.11.2019, WHICH IN TURN ARISES FROM THE ORDER PASSED BY THE A.O U/S 143(3) R.W.S 147 OF THE INCOME - TAX ACT, 1961 (FOR SHORT ACT), DATED 23.12.2018 FOR A.Y. 2010 - 11 . 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 3. CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. FURTHER, TAX ITA NO.1052/MUM/2020 A.Y.2010 - 11 ACIT, CIR 4(2)(2) VS. M/S KAUSHAL SILK MILLS PVT. LTD. 2 EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. 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 I NTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR, IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PE NDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FILED BY THE DEPARTMENT, THE TAX EFFECT INVOLVED IS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . THE SAID FACT AS WAS BROUGHT TO OUR NOTICE BY THE LD. COUNSEL FOR THE ASSESSEE W AS CONFRONTED TO THE LD. DEPARTMENTAL REPRESENTATIVE (DR). 6. BEFORE US, THE LD. DR SUBMITS THAT LIBERTY MAY KINDLY BE GIVEN TO RAISE, AFTER NECESSARY FURTHER VERIFICATION, AND TO SEEK RECALL THE DISMISSAL OF APPEAL AND RESTORATION OF THE APPEAL IN CASE IT CAN BE SHOWN THAT THE APPEAL IS COVERED BY THE EXCEPTIONS. 7. WE AGREE WITH THE ABOVE CONTENTIONS OF THE LD. DR AND MAKE IT CLEAR THAT THE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEPTIONS AND WE WILL TAKE APPROPRIATE REMEDIAL MEASURES IN THIS REG ARD. 8. WITH THE ABOVE OBSERVATIONS, THE APPEAL INVOLVING TAX EFFECT OF LESS THAN RS.50,00,000/ - IS DISMISSED. ORDER PRONOUN CED IN THE OPEN COURT ON 14 /09 /2021. SD/ - SD/ - ( PRAMOD KUMAR ) (RAVISH SOOD) VICE PRESIDENT JUDICIAL MEMBER MUMBAI ; DATED: 14 /09 /2021 **PS: ROHIT ITA NO.1052/MUM/2020 A.Y.2010 - 11 ACIT, CIR 4(2)(2) VS. M/S KAUSHAL SILK MILLS PVT. LTD. 3 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT, MUMBAI