Deputy Commissioner of Income-tax, Circle - १४, Pune V. M/s. Knorr Bremse Systems for Commercial Vehicles India Pvt. Ltd. , Pune

ITA 1796/PUN/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 5945 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-11-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 24-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, PUNE BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO.1796 /PUN/20 17 / ASSESSMENT YEAR : 2011 - 12 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 14, PUNE. ....... / APPELLANT / V/S. M/S. KNORR BREMSE SYSTEMS FOR COMMERCIAL VEHICLES INDIA PVT. LTD. LOCATION NO.276, S. NO.280 & 281, VILLAGE - MANN, HINJEWADI PHASE - II, TALUKA - MULSHI, PUNE - 411 057. PAN: AACCK1395D / RESPONDENT A SSESSEE BY : SHRI RAJENDRA AGIWAL REVENUE BY : SHRI T. VIJAYA BHASKAR REDDY, CIT / DATE OF HEARING : 20 .11 .2019 / DATE OF PRONOUNCEMENT : 21 .11 .2019 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS APPEAL PREFERRED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(APPEALS) - 13, PUNE DATED 27.04.2017 FOR THE ASSESSMENT YEAR 201 1 - 1 2 AS PER THE GROUNDS OF APPEAL ON RECORD. 2 ITA NO. 1796 /PUN/20 17 A.Y. 2011 - 12 2 . THE LD. AR OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEAL OF REVENUE ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)], DATED 08.08.2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 REVISING THE UPWARD MONETARY LIMITS FOR FILING OF APPEALS IN INCOME TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER CBDT CIRCULAR NO.03/2019 DATED 11.07.2018 FIXED MONETARY LIMIT FOR FILING OF APPEALS BEFORE THE TRIBUNAL AT RS.20 LAKHS. SUCH LIMIT HAS BEEN ENHANCED IN THE RECENT CBDT CIRCULAR DATED 08.08.2019 FROM RS.20 LAKHS TO RS. 50 LAKHS. THUS, THE TAX EFF ECT ON THE ADDITION IS LESS THAN RS.50 LAKHS. 3. THE LD. DR FAIRLY ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.50 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF LD. CIT(APPEALS) IN UPHOLDIN G THE CHANGE IN FINANCE AND TAX TEAM OF THE ASSESSEE IS SUFFICIENT REASON BY WHICH THE ASSESSEE WAS PREVENTED FROM FURNISHING EVIDENCE DURING THE YEAR LONG TP PROCEEDINGS. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THESE APPEALS IS LESS THAN THE MONETARY LIM IT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)] DATED 08 - 08 - 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08.08.2019 (S UPRA.) HAS AMENDED PARA 3 OF CIRCULAR NO.3 OF 2018 DATED 11.07.2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISE D IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA), WE DISMISS THE APPEAL FILED BY THE REVENUE. 3 ITA NO. 1796 /PUN/20 17 A.Y. 2011 - 12 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL T O SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AMENDMENT DATED 20 - 08 - 2018. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRO NOUNCED ON 21 ST DAY OF NOVEMBER , 201 9 . SD/ - SD/ - R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 21 ST NOVEMBER , 2019 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 13, PUNE. 4. THE PR. CIT - 5, PUNE. 5 . , , , / DR, ITAT, C BENCH, PUNE. 6 . / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO. 1796 /PUN/20 17 A.Y. 2011 - 12 DATE 1 DRAFT DICTATED ON 20 . 11 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 21 .11 .201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER