INCOME TAX OFFICER 8(1)(4), MUMBAI V. M/S.QUEST 2 TRAVEL.COM INDIA PRIVATE LIMITED, MUMBAI

ITA 1526/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8002 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 09-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MICHAEL JERALD SHRI S L JAIN
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'D' BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA NO. 1526/MUM/2018 (ASSESSMENT YEAR: 2010-11) INCOME TAX OFFICER - 8(1)(4) ROOM NO. 662, 6TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 VS. QUEST 2 TRAVEL.COM P. LTD. 28TH FLOOR, THE RUBY SENAPATI BAPAT MARG DADAR (W), MUMBAI 400028 PAN AAACQ0519P APPELLANT RESPONDENT APPELLANT BY: SHRI MICHAEL JERALD RESPONDENT BY: SHRI S.L. JAIN DATE OF HEARING: 17.08.2020 DATE OF PRONOUNCEMENT: 25.08.2020 O R D E R PER SHAMIM YAHYA, AM THE CAPTIONED APPEAL FILED BY THE REVENUE PERTAININ G TO A.Y. 2010-11 IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)- 14, MUMBAI DATED 22.12.2017 WHICH IN TURN ARISES OUT OF AN ORDER PAS SED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER 'THE ACT') DATED 25.03.2013. 2. THE GROUNDS OF APPEAL READ AS UNDER: - 1. THE LEARNED CIT(A) ERRED IN DELETING THE DISALL OWANCE OF OVERDRAFT INTEREST OF RS 44,03,526/- THE CIT(A) FAILED TO SEE THAT DEBITING OF INTEREST AND INCREASE IN DEBIT BALANCE IN ACCOUNT N OT ACTUAL PAYMENT AS DEFINED IN EXPLANATION 3D TO SECTION 43B. 2. THE LEARNED CIT(A) HAS ERRED IN DELETING THE DIS ALLOWANCE MADE TOWARDS DISCOUNT OF RS 1,47,02,391/-. THE LEARNED C IT(A) SHOULD HAVE REALIZED THAT THE ASSESSEE HAD PRODUCED ONLY C OMPUTER GENERATED BILLS WHICH ARE NEITHER SIGNED BY THE ASS ESSEE NOR BY THE CLIENT. THE LEARNED CIT (A) DID NOT APPRECIATE THE FACTS AND CIRCUMSTANCES OF THE CASE INDICATED IN THE ASSESSME NT ORDER AND REMAND REPORT. ITA NO. 1526/MUM/2018 QUEST 2 TRAVEL.COM P. LTD. 2 3. AT THE OUTSET THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT OF ` 50,00,000/- FIXED BY CBDT VIDE CIRCULAR NO. 17/2019 DATED 8 TH AUGUST, 2019, FOR FILING APPEAL BEFORE THE ITAT. HENCE THE LEARNED COUNSEL FOR THE ASSESSEE SU BMITTED THAT THIS APPEAL BY THE REVENUE IS NOT MAINTAINABLE. 4. PER CONTRA THE LEARNED D.R. COULD NOT DISPUTE THAT THE TAX EFFECT IS BELOW THE SAID LIMIT. 5. UPON CAREFUL CONSIDERATION WE FIND THAT, AS THE TAX EFFECT IS BELOW THE LIMIT FIXED BY THE CBDT FOR FILING APPEALS BORE THE ITAT, THIS APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED IN LIMINE. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE STAN DS DISMISSED AS SUCH. ORDER PRONOUNCED UNDER ITAT RULE 34(4) ON 25 TH AUGUST, 2020. SD/ - SD/ - (AMARJIT SINGH) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 25 TH AUGUST, 2020 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -14, MUMBAI 4. THE CIT - 8, MUMBAI 5. THE DR, D BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.