Asst. CIT, CIRCLE-7(3)(2), MUMBAI V. M/S PINE BRIDGE INVESTMENT CAPITAL (I) PVT LTD. [FORMALY KNOWN AS AIG CAPITAL INDIA PVT, LTD.], MUMBAI

ITA 1725/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4855 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 25-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VIKAS KALMANE
• Keywords: Tax effect; Revenue expenditure
• Section: 37(1); 201; 13

Judgement Text

T HE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI SHRI SHAMIM YAHYA ( A M) & SHRI RAVISH SOOD (JM) I.T.A. NO. 1725 /MUM/ 201 9 (ASSESSMENT YEAR 2012 - 13 ) ACIT, CIRCLE 7(3)(2) ROOM NO. 128A 1 ST FLOOR, AAYAKAR BHAVAN, M.K. ROAD MUMBAI - 400 020. V S . M/S. PINE BRIDGE INVESTMENT CAPITAL (I) PVT. LTD. 203, 2 ND FLOOR, PENINSULA TOWER, G.K. MARG, LOWER PAREL MUMBAI - 400 013. PAN : AAFCA7262A ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI VIKAS KALMANE DEPARTMENT BY SHRI UODAL RAJ SINGH DATE OF HEARING 06 . 1 0 . 20 20 DATE OF PRONOUNCEMENT 06 . 10 . 20 20 O R D E R PER SHAMIM YAHYA (AM) : - THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST ORDER OF LEARNED CIT(A) DATED 29.10.2018 AND PERTAINS TO ASSESSMENT YEAR 2012 - 13. 2. T HE GROUNDS OF APPEAL READ AS UNDER : - 1. LEARNED CIT(A) HAS ERRED IN LAW AND FACTS IN DELETING THE DISALLOWANCE OF RS. 1,30,29,721/ - WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE COMPANY HAS NOT RECEIVED ANY INCOME FROM NBFC ACTIVITY AND THEREBY ELIGIBLE FOR CLAIMING EXPENSES ON ACCOU NT OF EMPLOYEE BENEFIT EXPENSES AND OTHER EXPENSES. 2. LEARNED CIT(A) HAS ERRED IN LAW AND FACTS IN ALLOWING THE EXPENSES U/S. 37(1) OF THE I.T ACT BY PLACING RELIANCE ON THE DECISION OF ITAT FOR A.Y. 2009 - 10 IN ASSESSEES OWN CASE WHERE THE HON'BLE ITAT HAS REMANDED BACK THE ISSUE OF ALLOWABILITY OF REVENUE EXPENDITURE. 3. AT THE OUTSET WE NOTE THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT OF RS 50,00,000/ - FIXED BY CBDT VIDE CIRCULAR NO. 17/2019 DATED 8.8.2019 FOR F ILING APPEAL BEFORE THE ITAT. HEN CE W E FIND THAT THIS APPEAL BY THE REVENUE IS NOT MAINTAINABLE. LD DR COULD NOT DISPUTE THAT THE TAX EFFECT IS BELOW THE SAID 2 LIMIT. HE COULD NOT POINT OUT THAT THE APPEAL FALLS IN ANY OF THE EXCEPTIONS CARVED IN SAID CIRCULAR 4. UPON CAREFUL CONSIDERATIO N WE FIND THAT AS THE TAX EFFECT IS BELOW THE LIMIT FIXED BY CBDT FOR FILING APPEALS BEFORE THE ITAT, THIS APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED IN LIMINE. ACCORDINGLY THE APPEAL STANDS DISMISSED AS SUCH. ORDER PRONOUNCED UNDER RULE 34(4) OF T HE ITAT RULES ON 06.10.2020. SD/ - SD/ - ( RAVISH SOOD ) (SH A MIM YAHYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 06 / 1 0 / 20 20 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// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI