ITO (E) 2(1), MUMBAI V. AMARJEET BARYAN SINGH, MUMBAI

ITA 218/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4472 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 08-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN , AM AND AMARJIT SINGH , JM ./ I.T.A. NO . 7314 / MUM/ 201 3 ( / ASSESSMENT YEA R : 200 9 - 10 ) ASSTT. COMMI SSIONER OF INCOME TAX 16(1), 2 ND FLOOR, MATRU MANDIR, TARDEO ROAD, MUMBAI - 400007 / VS. SHRI ASHOK D GULATI, 2 ND TRADE HOUSE, KAMLA MILLS, SENAPATI BAPAT ROAD, LOWER PAREL, MUMBAI - 400013 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : ACAPG8995L ./ I.T.A. NO . 4501 / MUM/ 201 4 ( / ASSESSMENT YEA R : 2005 - 06 ) INCOME TAX OFFICER, WARD 3(1), KALYAN, 2 ND FLOOR, RANI MANSION, MURBAD ROAD, KALYAN (W) - 421301 / VS. SMT.KRISHNA R AMESH KHANDELWAL, POONAM R N 50, MIDC, RESIDENTIAL ZONE, OPP VENKATESH PATROL PUMP, SHIL ROAD, DOMBIVALI(E). ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AAMPK4736B ./ I.T.A. NO . 4499 / MUM/ 2014 ( / ASSESSMENT YEA R : 200 7 - 08 ) INCOME TAX OFFICER, TDS - 1(1), ROOM NO. 804, K G MITTAL HOSPITAL BLDG , CHARNI ROAD, MUMBAI - 400002 / VS. M/S ALLIANCE MEDIA AND ENTERTAINMENT PVT LTD., B - 1306, ANKUR RELIEF ROAD, GOREGAON (WEST), MUMBAI - 4 00062 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AAFCA3199A ITA NO. 7314/ MUM/ 201 3 AND OTHER SIX CASES 2 ./ I.T.A. NO . 5782 / MUM/ 201 1 ( / ASSESSMENT YEA R : 20 06 - 07 ) INCOME TAX OFFICER 5(1)(1), ROOM NO. 570, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020 / VS. MRS.LATA ACHARYA, RAM KRISHNA CHAMBERS, OFFICE NO.502/503, OPP. G H ANASINGH JEWELLERS LINKING ROAD, KHAR (W), MUMBAI - 400052 ( / APPELLANT ) .. ( / RESPONDENT ) ./ I.T.A. NO .5779/ MU M/ 2011 ( / ASSESSMENT YEA R : 2008 - 09) INCOME TAX OFFICER 5(1)(1), ROOM NO.570, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020 / VS. MRS.LATA ACHARYA, RAM KRISHNA CHAMBERS, OFFICE NO.502/503, OPP. GHANASINGH JEWELLERS LINKING ROAD, KHAR (W), MUMBAI - 400052 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AD F PA6464Q ./ I.T.A. NO . 218 / MUM/ 201 4 ( / ASSESSMENT YEA R : 20 08 - 09 ) INCOME TAX OFFICER (INTERNATIONAL TAXATION), 2(1),ROOM NO.14, GROUND FLOOR, SCHINIA HOUSE, BALLARD ESTATE, MUMBAI - 400038 / VS. SHRI AMARJEET BARYAN SINGH, 93, 9 TH FLOOR, KALPATARU HARMONY, SION - KILLA ROAD, NEAR TELEPHONE EXCHANGE, SION(E), MUMBAI - 400022 ( / APPELLANT ) .. ( / RESPONDENT ) ITA NO. 7314/ MUM/ 201 3 AND OTHER SIX CASES 3 CROSS - OBJECTION NO.187/M/2015 ARISING OUT OF I.T.A. NO .218/ MUM/ 2014 ( / ASSESSMENT YEA R : 2008 - 09) SHRI AMARJEET BARYAN SINGH, 93, 9 TH FLOOR, KALPATARU HARMONY, SION - KILLA ROAD, NEAR TELEPHONE EXCHANGE, SION( E), MUMBAI - 400022 / VS. INCOME TAX OFFICER (INTERNATIONAL TAXATION), 2(1),ROOM NO.14, GROUND FLOOR, SCHINIA HOUSE, BALLARD ESTATE, MUMBAI - 400038 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AEXPS446 8K / REVENUE BY SHRI MANOJ KUMAR / ASSESSEE BY ITA NO.7314/M/2013 SHRI NISHIT GANDHI ITA NO.4501/M/2014 - SHRI RAHUL R SARDA ITA NO.4499/M/2014 - SHRI N JAYENDRA ITAS NO.5782/M/2011 - SHRI K.T..LAKSHMINARAYANAN 5779/M/2011 - . DO - ITA NO.218/M/2014 - - SHRI BHUPENDRA SHAH CO NO.187/M/2015 - - DO - / DATE OF HEARING : 5.1.2016 / DATE OF PRONOUNCEMENT: 5.1.2016 / O R D E R P E R B ENCH: ALL THESE APPEALS FILED AT THE INSTANCE OF THE REVENUE ARE DIRECTED AGAINST THE SEPARATE ORDERS PASSED BY LEARNED CIT(A) IN THEIR RESPECTIVE HANDS. 2. AT THE TIME OF HEARING, IT WAS NOTICED THAT THE TAX EFFECT INVOLVED IN ALL THESE APPEALS ON TH E DISPUTED ISSUES IS LESS THAN RS.10.00 LACS. FOR THE SAKE OF CONVENIENCE, WE TABULATE BELOW THE RELEVANT DETAILS: - ITA NO. 7314/ MUM/ 201 3 AND OTHER SIX CASES 4 S.NO. NAME OF ASSESSEE AMOUNT IN DISPUTE(FOR QUANTUM APPEAL ) IN RS. AMOUNT OF PENALTY 1 SHRI ASHOK D GULATI, U/S 271(1)( C ) RS.7,86,411 2 SMT.KRISHNA RAMESH KHANDELWAL U/S 271D RS.5,00,000 3 M/S ALLIANCE MEDIA AND ENTERTAINMENT PVT LTD., U/S 201 & 201(1A) RS.4,82,795/ - 4 MRS.LATA ACHARYA, AY 2006 - 07 RS.20,45,974/ - 5 MRS.LATA ACHARYA, AY 2008 - 09 RS.19,04,002/ - 6 SHRI AMARJEET BARYAN SINGH, (ITA 218/M/2014) RS.22,00,000/ - 7 SHRI AMARJEET BARYAN SINGH, (CROSS OBJECTION BY ASSESSEE) 3. WE NOTICE THAT THE REVENUE IS CONTESTING THE DECISION OF LD CIT(A) IN GRANTING RELIEF TO THE EXTENT STATED ABOVE AND HENCE THE TAX EFFECT INVOLVED ON THE ABOVE SAID DISPUTED AMOUNTS WORKS OUT TO LESS THAN RS.10 LAKHS IN EACH OF THE CASES REFERRED ABOVE. RECENTLY THE CBDT HAS ISSUED A CIRCULAR NO.21/2015 DATED 10.12.2015 PRESCRIBING NEW MONETARY LIMITS FOR PREFERRING APPEALS AGAINST THE ORDERS PASSED BY LD CIT(A) BEFORE THE TRIBUNAL. THE RELEVANT PORTION OF THE CIRCULAR CITED ABOVE READS AS UNDER: F NO 279/MISC. 142/2007 - ITJ ( PT) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES CIRCULAR NO. 21/2015 ITA NO. 7314/ MUM/ 201 3 AND OTHER SIX CASES 5 NEW DELHI THE 10TH DECEMBER, 2015 SUB : REVISION OF MONETARY LIMITS FOR FILING OF APPEALS BY TH E DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE SUPREME COURT - MEASURES FOR REDUCING LITIGATION REG REFERENCE IS INVITED TO BOARD'S INSTRUCTION NO 5/2014 DATED 10.07.2014 WHEREI N MONETARY LIMITS AND OTHER CONDITIONS FO R FILING DEPARTMENTAL APPEALS (IN INCOME - TAX MATTERS) BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT WERE SPECIFIED. 2 . IN SUPERSESSION OF THE ABOVE INSTRUCTION, IT HAS BEEN DECIDED BY THE BOARD THAT DEPARTMENTAL APPEALS MAY BE FILED ON MERITS BEFORE APPELLATE TRIBUNAL AND HIGH COURTS AND SLP BEFORE THE SUPREME COURT KEEPING IN VIEW THE MONETARY LIMITS AND CONDITIONS SPECIFIED BELOW. 3. HENCEFORTH, APPEALS/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES N OT EXCEED THE MONETARY LIMITS GIVEN HEREUNDER: S NO APPEALS IN INCOME - TAX MATTERS MONETARY LIMIT (IN RS) 1 BEFORE APPELLATE TRIBUNAL 10,00,000/ - 2 BEFORE HIGH COURT 20,00,000/ - 3 BEFORE SUPREME COURT 25,00,000/ - IT IS CLARIFIED THAT AN APPEAL SHOU LD NOT BE FILED MERELY BECAUSE THE TAX EFFECT IN A CASE EXCEEDS THE MONETARY LIMITS PRESCRIBED ABOVE. FILING OF APPEAL IN SUCH CASES IS TO BE DECIDED ON MERITS OF THE CASE. 4. FOR THIS PURPOSE, 'TAX EFFECT' MEANS THE DIFFERENCE BETWEEN THE TAX ON TH E TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED (HEREINAFTER REFERRED TO AS 'DISPUTED ISSUES'). HOWEVER THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDE R DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUC ED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDERS, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. 5. . 6 ITA NO. 7314/ MUM/ 201 3 AND OTHER SIX CASES 6 7. 8. . 9. .. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/ NOT PRESSED . APPEALS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 11. .. IT CAN BE NOTICED THAT THE CBDT HAS FURTHER CLARIFIED THAT THIS NEW CIRCULAR/INSTRUCTION SHALL APPLY RETROSPECTIVELY, I.E., EVEN TO TH E PENDING APPEALS. IT IS ALSO STATED THAT THE QUANTUM OF PENALTY DELETED OR REDUCED SHALL BE CONSIDERED FOR DETERMINING THE MONETARY LIMITS. 4. IT IS WELL SETTLED PROPOSITION THAT THE CIRCULARS ISSUED BY THE CBDT ARE BINDING ON THE INCOME TAX AUTHORITIES. FOR THIS PROPOSITION, ONE MAY GAINFULLY REFER TO THE DECISIONS RENDERED BY THE HONBLE SUPREME COURT IN THE CASE OF AZADI BACHAO ANDOLAN (2003)(177 TAXATION 775) AND PRADIP J MEHTA VS. CIT (2008)(300 ITR 231). HENCE, THE LATEST CIRCULAR ISSUED BY THE CB DT (REFERRED SUPRA) IS BINDING ON THE INCOME TAX AUTHORITIES. ACCORDINGLY, WE FIND MERIT IN THE SUBMISSIONS OF LD A.R THAT THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE, SINCE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10 LAKHS. ACCORDINGLY, WE DISMISS THE APPEAL FILED BY THE REVENUE. 5. IN THE CASE OF SHRI AMARJEET BARYAN SINGH , THE ASSESSEE HAS ALSO FILED CROSS OBJECTION. SINCE THE APPEAL OF THE REVENUE IS DISMISSED, THE CO IS ALSO DISMISSED. ITA NO. 7314/ MUM/ 201 3 AND OTHER SIX CASES 7 5. IN THE RESULT, ALL THE APPEALS OF THE REVEN UE ARE DISMISSED AND THE CO FILED BY SHRI AMARJEET BARYAN SINGH IS ALSO DISMISSED . PRONOUNCED ACCORDINGLY ON 5TH JAN UARY , 2016 . 5TH JANU ARY, 2016 SD SD ( AMARJIT SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 5TH JANUARY, 201 6 . . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR ) , /ITAT, MUMBAI