ITO 24 (2)(2), MUMBAI V. JASANI JEWELLERY, MUMBAI

ITA 184/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4470 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 14-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SAMATHA
• Keywords: Tax effect; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN , HONBLE ACCOUNTANT MEMBER ITA NO . 184 /MUM/201 9 ( A.Y: 2011 - 12 ) INCOME TAX OFFICER 24(2)(2) ROOM NO. 514, 5 TH FLOOR PIRAMAL CHAMBERS MUMBAI V. M/S. JASANI J EWELLERY UNIT NO . 158/159, SDG - V SEEPZ - SEZ., ANDHERI (E) MUMBAI 400 096 PAN: AAEFJ7511P (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI APURVA SHAH DEPARTMENT BY : SHRI M. SAMATHA DATE OF HEARING : 21.10.2020 DATE OF PRONOUNCEMENT : 21.10.2020 O R D E R PER C.N. PRASAD (JM) THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 56 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] IN APPEAL NO. CIT(A) - 56, MUMBAI/10051/2017 - 18 DATED 08.10.2018 FOR THE ASSESSMENT YEAR 2011 - 12 . 2. REVENUE HAS RAISED THE FOLLOWING GROUND S IN ITS APPEAL : - 2 ITA NO. 184/MUM/2019 (A.Y: 2011 - 12) M/S. JASANI JEWELLERY 1. 'WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) ERRED IN EXCLUDING CLASSIC DIAMONDS INDIA LTD FROM LIST OF COMPARABLES WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE COULD NOT FILE ANY MATERIAL EVIDENCE TO PROVE THAT BUSINESS ACTIVITIES OF CLASSIC DIAMONDS INDIA LTD IS DIAMONDS WHEREAS THE BUSINESS ACTIVITY OF THE ASSESS EE IS JEWELLERY MANUFACTURING. 2. 'WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) ERRED IN EXCLUDING CLASSIC DIAMONDS INDIA LTD FROM LIST OF COMPARABLES WITHOUT APPRECIATING THE FACT THAT THE ISSUE OF COMPARABLES IS DECIDED BASED ON THE SUBMISSION OF THE ASSESSEE WITHOUT REMANDING THE ISSUE TO THE ASSESSING OFFICER WHICH IS AGAINST THE RULE 46A. 3. 'THE APPELLANT PRAYS THAT THE ORDER OF THE CIT (APPEALS) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF AO BE RESTORED'. 4. 'THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR TO SUBMIT ADDITIONAL NEW GROUND WHICH MAY BE NECESSARY'. 3. AT THE TIME OF HEARING, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT TAX EFFECT ON THE ISSUE IN THE PRESENT APPEAL IS BELOW . 50 LACS AND IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT), THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. DEPARTMENTAL REPRESENTATIVE ALSO AGREED WITH THE ABOVE SUBMISSION OF THE AUTHORIZED REPRESENTATIVE OF T HE ASSESSEE. 5. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE GROUNDS OF APPEAL IN THIS APPEAL. WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN .50 LAKHS AND THEREFORE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE 3 ITA NO. 184/MUM/2019 (A.Y: 2011 - 12) M/S. JASANI JEWELLERY ON ACCOUNT OF LOW TAX EFFE CT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. HENCE THIS APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 21. 09.2020 AS PER RULE 34(4) OF ITAT RULES BY PLACING THE PRONOUNCEMENT LIST IN THE NOTICE BOARD. SD/ - SD/ - ( S. RIFAUR RAHMAN ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 21/ 10 / 2020 GIRIDHAR, SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM