DCIT CENTRAL CIRCLE 8(3), Mumbai V. M/S ROSY BLUE (INDIA) PVT. LTD, Mumbai

ITA 1456/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1337 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Assessment Year: 2013-2014
• Appeal Filed On: 11-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANPREET DUGGAL
• Keywords: Tax effect
• Section: 143(3); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 1456/MUM/2019 ASSESSMENT YEAR: 2013-14 DCIT, CENTRAL CIRCLE-8(3), ROOM NO. 659, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020. VS. M/S ROSY BLUE (INDIA) PVT. LTD., 1608-09, PRASAD CHAMBERS, OPERA HOUSE, MUMBAI- 400004 PAN NO.AACCR2413B APPELLANT RESPONDENT REVENUE BY : MR. MANPREET DUGGAL, DR ASSESSEE BY : MR. NITESH JOSHI, AR DATE OF HEARING : 10/12/2020 DATE OF PRONOUNCEMENT : 10/12/2020 ORDER PER N.K. PRADHAN, A.M. THE CAPTIONED APPEAL FILED BY THE REVENUE IS DIRECT ED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME (APPEALS )-57, MUMBAI [IN SHORT CIT(A)] AND ARISE OUT OF ASSESSMENT COMPLET ED U/S 143(3) R.W.S. 144C(3) OF THE INCOME TAX ACT, 1961 (THE ACT). 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DA TED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE REVENUE BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BEFOR E SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. M/S ROSY BLUE ITA NO. 1456/MUM/2019 2 3. CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX AP PELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE M ONETARY LIMIT OF RS.20,00,000/-. FOR THIS PURCHASE, TAX EFFECT MEA NS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX TH AT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY TH E AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. FURTHER, TAX EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHAR GE AND CESS. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT W HERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEAB ILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST 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 PENA LTY ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. AT PARA 13 OF THE SAID CIRCULAR, IT HAS BEEN MENTIO NED 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 PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PE NDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN /NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGAT ION, CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT F OR FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/-. 5. IN THE INSTANT APPEAL, AS PER THE CALCULATION F ILED BY THE LD. COUNSEL THE TAX EFFECT IS RS.44,47,598/-. THEREFORE, THE LD . COUNSEL FOR THE ASSESSEE SUBMITS THAT THE APPEAL FILED BY THE REVENUE BE DIS MISSED. M/S ROSY BLUE ITA NO. 1456/MUM/2019 3 6. BEFORE US, THE LD. DEPARTMENTAL REPRESENTATIVE (DR ) FAIRLY AGREES THAT THE TAX EFFECT HEREIN IS BELOW THE MONETARY LI MIT OF RS.50,00,000/- FIXED BY THE ABOVE CIRCULAR FOR FILING OF APPEALS B EFORE THE ITAT. HOWEVER, IT IS PLEADED BY HIM THAT IN CASE OF EXCEPTIONS TO THE ABOVE CIRCULAR, THE APPELLANT MAY BE ALLOWED TO BRING IT TO THE NOTICE OF THE TRIBUNAL. CONSIDERING THE SUBMISSION, WE MAKE IT CLEAR THAT T HE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEPTIONS TO WHICH THE AB OVE CIRCULAR MAY NOT APPLY, BY FILING MISCELLANEOUS APPLICATION. 7. IN VIEW OF THE CBDT CIRCULAR NO. 17/2019, THIS APPEAL INVOLVING TAX EFFECT OF LESS THAN RS.50,00,000/- IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 10/12/2020. SD/- SD/- (SAKTIJIT DEY) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 10/12/2020. RAHUL SHARMA, SR. P.S. 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// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI