DCIT 8(2)(1), MUMBAI V. M/S.VAI ENGINEERING & AUTOMATION PRIVATE LIMTED.(THROUGH ITS SUCCESSOR M/S. SIEMENS LIMITED), MUMBAI

ITA 1831/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1997 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Assessment Year: 2003-2004
• Appeal Filed On: 20-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESHWAR YADAVDR
• Keywords: Retrospective amendment; Tax effect

Judgement Text

1 ITA 3975/MUM/2018 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J, MUMBAI BEFORE SHRI C.N.PRASAD (JUDICIAL MEMBER) AND SHRI G MANJUNATHA (ACCOUNTANT MEMBER) I.T.A NO. 1831/MUM/2018 (ASSESSMENT YEAR: 2003-04) DCIT- 8(2)(1) AAYAKAR BHAVAN, R.NO. 624, 6 TH FLOOR, M.K.ROAD, MUMBAI-400 020 VS M/S VAI ENGINEERING & AUTOMATION PVT LTD(THROUGH ITS SUCCESSOR SIMENS LIMITED), NO. 130, PANDURANG BUDHKAR MARG, WORLI, MUMBAI-400 025 PAN: AABCV8348L APP ELLANT RESPONDENT APPELLANT BY SHRI RAJESHWAR YADAV-(DR) RESPONDENT BY NITESH JOSHI DATE OF HEARING 03 -09 - 2019 DATE OF PRONOUNCEMENT 03 -09 - 2019 O R D E R PER G MANJUNATHA, AM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST ORDER OF THE CIT(A)- 22, KOLKOTA DATED 22/12/2017 AND IT PERTAIN S TO AY 2003-04. 2. WE HAVE HEARD BOTH THE PARTIES AND PERUSED MATER IALS AVAILABLE ON RECORD. DURING COURSE OF HEARING, LD. AR FOR THE AS SESSEE SUBMITTED THAT TAX EFFECT INVOLVED IN THIS APPEAL FILED BY THE REV ENUE IS LESS THAN RS. 50 2 ITA 3975/MUM/2018 LACS AND IN VIEW OF LATEST CBDT CIRCULAR NO.17/2019 DATED 08/08/2019, APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND NEEDS TO BE DISMISSED. THE LD. DR, ON THE OTHER HAND SUBMITTED THAT, TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS. 50 LACS, H OWEVER, HE FURTHER ARGUED THAT, THE ISSUE INVOLVED IN THIS APPEAL IS A PPEARS TO BE COVERED BY EXCEPTION AS PROVIDED UNDER CLAUSE (E) OF SUBSEQ UENT CIRCULAR AND THEREFORE, IF REQUIRED THE REVENUE SHALL BE ALLOWED TO FILE MISCELLANEOUS APPLICATION TO RELCALL THE ORDER. WE, FIND THAT, TH E CBDT, RECENTLY HAD ISSUED A CIRCULAR NO. 3/2018 DATED 11-7-2018, SUPER SEDING ITS EARLIER CIRCULAR NO. 21/2015 AND ENHANCED MONETARY LIMIT FO R FILING APPEAL BEFORE VARIOUS APPELLATE AUTHORITIES AND ACCORDINGLY, ENHA NCED MONETARY LIMIT TO RS. 20,00,000/- FOR FILING APPEAL BEFORE THE TRI BUNAL. FURTHER, THE BOARD HAS ISSUED ONE MORE CIRCULAR VIDE CIRUCLAR NO .17/2019 DATED 08/08/2019 AND HAD ENHANCED MONETARY LIMIT FOR FILI NG APPEAL BEFORE APPELLATE TRIBUNAL TO RS. 50,00,000/-. FURTHER, IN THE SAID CIRCULAR, THE CBDT HAD INSTRUCTED ITS OFFICERS TO FILE APPLICATI ON FOR WITHDRAWAL OF APPEAL ALREADY FILED OR NOT TO PURSUE PENDING APPEA LS. WE, THEREFORE, BY TAKING INTO ACCOUNT THE CBDT CIRCULAR NO. 3/2018 DA TED 11-7-2018 AND CIRCULAR NO.17/2019 DATED 08/08/2019 AND ALSO CONSI DERING THE FACT THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS T HAN THE AMOUNT OF MONETARY LIMIT FIXED BY THE CBDT FOR NOT FILING APP EAL, DISMISSED APPEAL 3 ITA 3975/MUM/2018 FILED BY THE REVENUE AS NOT MAINTAINABLE. WE, FURTH ER NOTED THAT THE ITAT, AHMEDABAD A BENCH IN ITA.NO. 1398/AHD/2004, VIDE ORDER DATED 14/08/2019 HAD PASSED DETAILED ORDER CONSIDERING TH E NEW CIRCULAR ISSUED BY THE CBDT AND HELD THAT EXCEPT AMENDMENT T O PARA 3 OF THE CIRCULAR NO.3/2018 DATED 11/07/2018, ALL OTHER PORT IONS OF THE CIRCULAR NO.03/2018 (SUPRA) HAVE REMAIN INTACT, THEREFORE, T HIS CIRCULAR IS APPLICABLE EVEN FOR PENDING APPEALS AND ACCORDINGLY , REJECTED THE ARGUMENTS OF THE REVENUE THAT THE EFFECT OF THE CIR CULAR SHALL COME INTO FORCE FROM THE DATE OF ISSUE OF THIS CIRCULAR. WE, FURTHER NAOTED THAT THE CBDT HAD ISSUED A CLARIFICATION AND STATED THAT THE NEW CIRCULAR IS APPLICABLE FROM RETROSPECTIVE EFFECT. THEREFORE, CO NSIDERING THE FACTS AND CIRCUMSTANCES OF THIS CASE AND ALSO TAKEN NOTE OF C IRCULARS ISSUED BY THE CBDT INCLUDING CIRCULAR NO. 17/2019 DATED 08/08/201 9, AND ALSO BY FOLLOWING THE DECISION OF CO-ORDINATE BENCH OF AHME DABAD A BENCH DECISION IN ITA.NO. 1398/AHD/2004, VIDE ORDER DATED 14/08/2019, WE DISMISSED APPEAL FILED BY THE REVENUE AS NOT MAINTA INABLE. HOWEVER, WE KEEP OPEN OPTION TO THE REVENUE TO FILE A MISCELLAN EOUS APPLICATION, IF NECESSARY, IN CASE THE ISSUES INVOLVED IN THE PRESE NT APPEAL COMES WITHIN 3 EXCEPTIONS AS PROVIDED IN PARA 10 OF SAID CIRCULAR AND CLAUSE (E) OF SUBSEQUENT CIRCULAR. 4 ITA 3975/MUM/2018 3. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03 SEPTEMBER, 2019 SD/- SD/- (C.N.PRASAD) (G MANJUNATHA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DT : 03-09-2019 THIRUMALESH, SR.PS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR /TRUE COPY/ BY ORDER SR.PS, ITAT, MUMBAI