ITO 21(3)(3), MUMBAI V. MAFRUNISHA R. KHAN, MUMBAI

ITA 1904/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2663 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 08-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANDHIR GUPTA
• Keywords: Tax effect

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.C. SHARMA(AM) AND SHRI SANDEEP GOSAI N (JM) ITA NO. 1904/MUM/2013 ASSESSMENT YEAR: 2008-09 ITO 21(3)(3) VS. MAFRUNISHA R. KHAN, R.NO. 507, C-11 5 TH FLOOR, R 5 BABA STEEL CHAWL, PRATYAKSHKAR BHAVAN L.B.S MARG, KURLA (W) BANDRA KURLA COMPLEX MUMBAI - 400070 BANDRA (E) MUMBAI PAN NO. ADOPK3578L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. RANDHIR GUPTA RESPONDENT BY : NONE DATE OF HEARING : 25/07/201 6 DATE OF PRONOUNCEMENT : 25/07/2016 O R D ER PER SANDEEP GOSAIN, JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINS T THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-32, MUMBAI, DA TED 31/12/2013 FOR THE ASSESSMENT YEAR 2008-09. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE HOWEVER, SH RI RANDHIR GUPTA, DEPARTMENTAL REPRESENTATIVE (DR) IS PRESENT IN T HE COURT ON BEHALF OF THE REVENUE. 2 3. THE MAIN ISSUE RAISED IN THIS APPEAL IS WITH REGARD TO ALLEGED FAILURE OF THE ASSESSEE IN DEDUCTION OF TAX AT SOURCE WHILE MAKING THE PAYMENT BY THE ASSESSEE AND ITS CONSEQUENT DISALLOWANCE U/S 40(A)(IA ). 3.1. IT IS NOTED BY US THAT TAX EFFECT IN THIS CASE IS APPARENTLY LESS THAN RS. 10,00,000/-. 3.2. WE HAVE GONE THROUGH THE AFORESAID CIRCULAR OF THE BOARD. IT HAS BEEN PROVIDED IN THE AFORESAID CIRCULAR THAT NO APPEAL SHAL L BE FILED BY THE REVENUE IF THE TAX EFFECT INVOLVED IN THE APPEAL DOES NOT EXCEED A SUM OF RS. 10 LACS. IT HAS FURTHER BEEN PROVIDED THAT INSTRU CTIONS CONTAINED THEREIN SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. RELE VANT PART OF THE CIRCULAR IS REPRODUCED BELOW: 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIB UNAL. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED. APPEALS BEFORE THE SUPREME COURT WILL BE G OVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3.3. IT IS CONFIRMED BY THE LD. DR THAT TAX EFFECT IN THIS CASE IS LESS THAN THE AMOUNT OF RS.10,00,000/-. AS PER LAW, CIRCULAR OF CBD T HAS BINDING EFFECT ON THE INCOME TAX AUTHORITIES. 3 3.4. IN VIEW OF THE ABOVE, WE FIND THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. THEREFORE, WE DISMISS THE SAME. 3.5. HOWEVER, WITH A VIEW TO FOLLOW PRINCIPLES OF NAT URAL JUSTICE, WE GIVE LIBERTY TO THE REVENUE TO FILE MISCELLANEOUS APPLICATION U/S 254 IN CASE TAX EFFECT IS FOUND TO BE MORE THAN RS. 10,00,000/-. FURTHER, OUR O RDER SHALL HAVE NO BEARING ON THE MERITS OF THE CASE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 JULY, 2016. SD/- SD/- (R.C. SHARMA) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 25/07/2016 / 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// , ,, ,/ // /+- . +- . +- . +- . (DY./ASSTT. REGISTRAR) %' %' %' %', , , , / ITAT, MUMBAI AG (ON TOUR)