ITO 8(1)-4, MUMBAI V. GLOBAL SECURITY SYSTEMS P.LTD, MUMBAI

ITA 2187/MUM/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4144 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 14-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 02-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASGHAR ZAIN
• Assessee Lawyers: NIYATI MEHTA
• Keywords: Tax effect
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER / I .T A NO. 2187/MUM/2012 ( / ASSESSMENT YEAR : 2008 - 09 THE ITO 08(1), AAYAKAR BHAVAN, MUMBAI - 400 020 / VS. M/S. GLOBAL SECURITY SYSTEMS PVT. LTD., KRISHNA KUNJ, BHAKTIVADANI SWAMY MARG, NEAR JVPD BUS DEPOT, JUHU, MUMBAI - 400 049 ./ ./ PAN/GIR NO. AACCG 7383B ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI ASGHAR ZAIN / RESPONDENT BY: MISS NIYATI MEHTA / DATE OF HEARING : 08 . 0 2 . 201 6 / DATE OF PRONOUNCEMENT : 08 . 0 2 .201 6 / O R D E R PER C.N. PRASAD, JM : THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) - 16, MUMBAI DATED 25.01.2012 PERTAINING TO ASSESSMENT YEAR 2008 - 09. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION U/S. 68 AMOUNTING TO RS. 8,78,990/ - ON ACCOUNT OF AMOUNT INTRODUCED BY THE ASSESSEE IN THE ASSESSEE COMPANY BY ITA NO. 2187/M/2012 2 HOLDING IT AS REIMBURSEMENT OF EXPE NSES, WITHOUT APPRECIATING THE FACT THAT THE SAID SUMS ARE CASH DEPOSITS AND THE ASSESSEE COMPANY IN ITS LEDGER A/C HAD DULY ACKNOWLEDGED THE SAID AMOUNTS AS CASH RECEIVED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION U/S.43B AMOUNTING TO RS. 14,29,098 ON ACCOUNT OF SERVICE TAX COLLECTED BUT NOT PAID, WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAD COLLECTED SERVICE TAX FROM THE CUSTOMERS BUT NOT DEPOSITED THE SAME INTO THE GOVERNMENT TREASURY. 3. BEFORE GOING INTO THE MERITS OF THE CASE, WE CONSIDER CBDTS LATEST INSTRUCTIONS VIDE CIRCULAR NO.21/2015 DATED 10/12/2015, THE RELEVANT PORTION OF WHICH READ AS UNDER: - CIRCULAR NO. 21/2015 F NO 279/MISC. 142/2007 - ITJ (PT) GOVERNMENT O F INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES NEW DELHI THE 10TH DECEMBER, 2015 SUBJECT: REVISION OF MONETARY LIMITS FOR FILING OF APPEALS BY THE 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 WHEREIN MONETARY LIMITS AND OTHER CONDITIONS FOR 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 INSTRU CTION, 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. ITA NO. 2187/M/2012 3 3. HENCEFORTH, APPEAL S/ SLPS SHALL NOT BE FILED IN CASES WHERE THE TAX EFFECT DOES NOT 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 SHOULD 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. IT IS FURTHER CLARIFIED BY THE BOARD IN ITS CIRCULAR THAT THESE INSTRUCTIONS WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS AND TRIBUNALS. IT IS ALSO MADE CLEAR THAT PENDING APPEALS BELOW THE MONITORY LIMITS FIXED IN PARA - 3 ABOVE MAY BE WITHDRAWN OR NOT PRESSED. 5. IN THE CASE IN HAND, THE TOTAL DEMAND AS PER CIT(A)S ORDER IS LESS THAN THE AMOUNT OF RS. 10,00,000/ - , WHICH IS BELOW THE MONETARY LIMITS AS MENTIONED IN CBDT CIRCULAR DATED 10. 12.2015 (SUPRA). FOLLOWING THE SAME, THIS APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH FEBRUARY , 201 6 . SD/ - SD/ - ( RAJESH KUMAR ) ( C.N. PRASAD ) / ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI ; DATED : 8 TH FEBRUARY , 201 6 . . ./ RJ , SR. PS ITA NO. 2187/M/2012 4 / 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