DCIT (OSD) 8(2), MUMBAI V. JHA EXPORT P.LTD, MUMBAI

ITA 149/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1906 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2015
• Appeal Filed By: Department
• Bench Allotted: J
• Next Hearing Date: 14-07-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 06-01-2014
• Court: TRIBUNAL
• Department Lawyers: JEEVANLAL LAVIBIYA
• Keywords: Tax effect
• Section: 143(3); 133(6); 37(1)

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J, MUMBAI , , , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.149/MUM/2014 ASSESSMENT YEAR: 2004-05 D C IT 8 ( 2 ) R.NO.218, AAYAKAR BHAVAN, M.K. RD. MUMBAI -400020 / VS. M/S. JHA EXPORT PVT. LTD. 110, CHAKALA STREET, MASJID BUNDER, MUMBAI-400 003 (REVENUE) (RESPONDENT) P.A. NO. AAACJ1492J REVENUE BY SHRI JEEVANLAL LAVIBIYA (DR) RESPONDENT BY SHRI SANJAY PARIKH (AR) / DATE OF HEARING : 14/12/2015 / DATE OF ORDER: 18/12/2015 / O R D E R PER ASHWANI TANEJA (ACCOUNTANT MEMBER): THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEAL S)-17, MUMBAI {(IN SHORT CIT(A)}, DATED 18.10.2013 FOR T HE JHA EXPORT PVT. LTD. 2 ASSESSMENT YEAR 2004-05, PASSED AGAINST THE ASSESSM ENT ORDER PASSED BY THE ASSESSING OFFICER (IN SHORT AO ) U/S 143(3) OF THE ACT, ON THE FOLLOWING GROUND: 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS.20,93,361/- UNDER SECTION 37(1) OF THE IT ACT IGNORING THAT NOTICES U/S 133(6) HAVE BE EN RETURNED BACK IN THE CASE OF THE PURCHASE PARTIES AND THE ASSESSEE HAS NOT DISCHARGED ITS ONUS OF PROVIDING THE CORRECT ADDRESSES TO SUBSTANTIATE ITS CLAIM AND ENSURE THE PRODUCTION OF THE WITNESS.' 2. DURING THE COURSE OF HEARING, ARGUMENTS WERE MADE B Y SHRI SANJAY PARIKH, AUTHORISED REPRESENTATIVE (AR) ON BEHALF OF THE ASSESSEE AND BY SHRI JEEVANLAL LAVIBIYA, DEP ARTMENTAL REPRESENTATIVE (DR) ON BEHALF OF THE REVENUE. 3. DURING THE COURSE OF HEARING, LD. COUNSEL OF THE AS SESSEE SUBMITTED COPY OF CIRCULAR OF CENTRAL BOAR OF DIREC T TAXES NO.21/2015 DATED 10 TH DECEMBER, 2015 WHEREIN IT HAS BEEN PROVIDED BY THE BOARD THAT NO APPEAL SHALL BE FILED BY THE REVENUE BEFORE APPELLATE TRIBUNAL WHERE THE TAX EFF ECT INVOLVED IN THE APPEAL DOES NOT EXCEED A SUM OF RS.10,00,000/-, AND REQUESTED FOR DISMISSAL OF THE APPEAL OF THE REVENUE IN VIEW OF THE SAID CIRCULAR. 3.1. ON THE OTHER HAND, LD. DR HAS RELIED UPON THE ORDE R OF THE AO. JHA EXPORT PVT. LTD. 3 3.2. WE HAVE GONE THROUGH THE AFORESAID CIRCULAR OF THE BOARD. IT HAS BEEN PROVIDED IN THE AFORESAID CIRCULAR THAT NO APPEAL SHALL BE FILED BY THE REVENUE IF THE TAX EFFECT INV OLVED IN THE APPEAL DOES NOT EXCEED A SUM OF RS. 10 LACS. IT HAS FURTHER BEEN PROVIDED THAT INSTRUCTIONS CONTAINED THEREIN S HALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. RELEVANT P ART OF THE CIRCULAR IS REPRODUCED BELOW: 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNAL. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH AP PEAL WAS FILED. 3.3. IT IS FURTHER NOTED BY US FROM THE ORDER OF LD. C IT(A) THAT TAX EFFECT IN THIS CASE IS LESS THAN THE AMOUNT OF RS.10,00,000/-. AS PER LAW, CIRCULAR OF CBDT HAS BI NDING EFFECT ON THE INCOME TAX AUTHORITIES. 3.4. IN VIEW OF THE ABOVE, WE FIND THAT THE APPEAL OF T HE REVENUE IS NOT MAINTAINABLE. THEREFORE, WE DISMISS THE SAME. JHA EXPORT PVT. LTD. 4 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH DECEMBER, 2015. SD/- (SANJAY GARG ) SD/- (ASHWANI TANEJA) ! / JUDICIAL MEMBER ' ! / ACCOUNTANT MEMBER MUMBAI; ' DATED : 18/12/2015 CTX? P.S/. .. #$%&'(')% / COPY OF THE ORDER FORWARDED TO : 1. $ %& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( $ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -. '/0 , ) $ /01 , / DR, ITAT, MUMBAI 6. 2 3 / GUARD FILE. / BY ORDER, ( -$ ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI