DCIT CENT. CIR. -7(3), MUMBAI V. UBAID PATEL, NAVI MUMBAI

ITA 2278/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9617 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 27-07-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 28-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT PATANKAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH, MUMBAI BEFORE SHRI P K BANSAL, VICE PRESIDENT AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.2278 /MUM/2016 (ASSESSMENT YEAR: 2008-09) DCIT, CENTRAL CIRCLE - 7(3) VS. SHRI UBAID PATEL ROOM NO. 655, 6 TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 F - 403, GOODWILL GARDEN PLOT NO. 15-16, SECTOR 8 KHARGAR, NAVI MUMBAI PAN AJEPP5723E APPELLANT RESPONDENT APPELLANT BY: SHRI ABHIJIT PATANKAR RESPONDENT BY: SHRI VIJAY MEHTA DATE OF HEARING: 05.09.2017 DATE OF PRONOUNCEMENT: 05.09.2017 O R D E R PER P.K. BANSAL, VICE PRESIDENT THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A)-49, MUMBAI DATED 03.02.2016 FOR A.Y. 2008-09 . 2. AT THE VERY OUTSET, WE NOTED THAT IN THIS CASE T HE TAX EFFECT ON THE INCOME UNDER DISPUTE IS LESS THAN RS.10 LAKHS. WE F URTHER NOTED THAT THE CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO. 21/ 2015 DATED 10 TH DECEMBER, 2015 FILE NO.279 OF MISC. 142/2007 ITJ (PT) HAS ISSUED THE DIRECTION IN SUPERSESSION OF THE INSTRUCTION NO.5/2 014 DATED 10/07/2014 IN PURSUANCE WITH THE POWER ENTRUSTED U/S. 268A OF THE INCOME TAX ACT, THAT NO APPEAL SHOULD BE FILED BEFORE THIS TRIBUNAL IN CASE TAX EFFECT DOES NOT EXCEED RS.10 LAKHS. THE TAX EFFECT IN THIS RE GARD MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND TH E TAX THAT WHAT HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. THIS CIRCULAR FURTHER STATES THAT TAX WILL NOT INCL UDE ANY INTEREST THEREON THE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. WE FURTHER NOTED THAT ITA NO. 2278/MUM/2016 SHRI UBAID PATEL 2 UNDER PARAGRAPH 10 WHICH IS REPRODUCED AS UNDER, IT HAS BEEN MENTIONED IN THE CIRCULAR THAT THIS INSTRUCTION WILL APPLY EV EN TO THE PENDING APPEALS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/TRIBUNALS. PENDING APPEALS BELOW THE SPECIFI ED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEA LS BEFORE THE SUPREME COURT WILL BE GOVERNED BY THE INSTRUCTI ONS ON THIS SUBJECT, OPERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3. IN THE IMPUGNED CASE, WE NOTED THAT THE TAX EFFE CT ON THE ISSUE UNDER DISPUTE DOES NOT EXCEED RS.10 LAKHS. IN VIEW OF THIS FACT AS PER THE INSTRUCTION, THE REVENUE IS NOT SUPPOSED TO PRESS T HE APPEAL. WE, THEREFORE, DISMISS THE APPEAL FILED BY THE REVENUE IN LIMINE WITHOUT GOING INTO THE MERITS OF THE CASE AS IN OUR OPINION THE C IRCULARS ISSUED BY CBDT ARE BINDING ON THE DEPARTMENTAL OFFICERS IN VIEW OF THE PROVISIONS OF SECTION 268A(1) OF THE ACT. THE SAID VIEW HAS BEEN TAKEN BY HONBLE SUPREME COURT IN THE CASE OF NAVNEET LAL ZAVERI VS. AAC 56 ITR 198 (SC). WE ACCORDINGLY DISMISS THE APPEAL FILED BY THE REVE NUE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH SEPTEMBER, 2017. SD/ - SD/ - (PAWAN SINGH) (P.K. BANSAL) JUDICIAL MEMBER VICE PRESIDENT MUMBAI, DATED: 5 TH SEPTEMBER, 2017 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -49, MUMBAI 4. THE PR. CIT - 4, MUMBAI 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.