Deputy Commissioner of Income-tax, Circle - 1(2), Pune V. Glatt Systems Private Limited, Pune

ITA 2292/PUN/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3880 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 12-02-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 29-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAHADEVAN A M KRISHNAN
• Keywords: Tax effect
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, J UDICIAL M EMBER . / I TA NO. 2292 /PUN/20 17 / ASSESSMENT YEAR : 2011 - 12 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 1(2), PUNE. ....... / APPELLANT / V/S. M/S. GLATT SYSTEMS PRIVATE LIMITED (FORMERLY KNOWN AS ZIEMANN INDIA PRIVATE LIMITED) 2 ND FLOOR, CONNAUGHT PLACE, CTS - 28, BUND GARDEN ROAD, PUNE - 411 001. PAN : AAACZ3001B / RESPONDENT A SSESSEE BY : SHRI PAVAN DUDHEDIYA REVENUE BY : SHRI MAHADEVAN A.M. KRISHNAN / DATE OF HEARING : 12 . 0 2 .202 1 / DATE OF PRONOUNCEMENT : 22 . 02 .2021 / ORDER THIS APPEAL PREFERRED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(APPEALS) - 13, PUNE DATED 31.07.2017 FOR THE ASSESSMENT YEAR 2011 - 12 AS PER THE GROUNDS OF APPEAL ON RECORD. 2 ITA NO. 2292 /PUN/20 17 A.Y. 2011 - 12 2. AT THE VERY OUTSET, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS RS. 40,65,512/ - AND THEREFORE, THE APPEAL OF REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TERMS OF RECENT CBDT CIRCULAR NO.17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)], DATED 08.08.2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 REVISING THE UPWARD MONETARY LIMI TS FOR FILING OF APPEALS IN INCOME TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER CBDT CIRCULAR NO.03/2019 DATED 11.07.2018 FIXED MONETARY LIMIT FOR FILING OF APPEALS BEFORE THE TRIBUNAL AT RS.20 LAKHS. SUCH LIMIT HAS BEEN ENHANCED IN THE RECENT CB DT CIRCULAR DATED 08.08.2019 FROM RS.20 LAKHS TO RS. 50 LAKHS. THUS, THE TAX EFFECT ON THE ADDITION IS LESS THAN RS.50 LAKHS. 3. THE LD. DR FOR THE REVENUE SUBMITTED THAT HE IS NOT SURE ABOUT THE TAX EFFECT INVOLVED IN THIS APPEAL; HOWEVER, THE REVENUE IS READY TO WITHDRAW THE APPEAL UNDER THE CIRCUMSTANCES IF A CONDITIONAL ORDER IS PASSED TO THAT EFFECT. 4. BOTH SIDES HEARD. AS PER THE SUBMISSION OF THE LD. AR OF THE ASSESSEE, THE TAX EFFECT INVOLVED IN THIS APPEAL IS RS.40,65,512/ - WHICH IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE REC ENT CBDT CIRCULAR NO.17/2019 [F NO. 279/MISE.142/2007 - ITJ (PT)] DATED 08 - 08 - 2019 READ WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR D ATED 08.08.2019 (SUPRA.) HAS AMENDED PARA 3 OF CIRCULAR NO.3 OF 2018 DATED 11.07.2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT O F THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE CBDT CIRCULAR (SUPRA), WE DISMISS THE APPEAL FILED BY THE REVENUE. 3 ITA NO. 2292 /PUN/20 17 A.Y. 2011 - 12 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE RE QUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY THE EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11 - 07 - 2018 AND ITS AMENDMENT DATED 20 - 08 - 2018. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRO NOUNCED ON 22 ND DAY OF FEBRUARY , 20 2 1 . SD/ - SD/ - INTURI RAMA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 22 ND FEBRUARY , 202 1 SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 13, PUNE. 4. THE PR. CIT - 5, PUNE. 5 . , , , / DR, ITAT, C BENCH, PUNE. 6 . / GUARD FILE. / BY ORDER, // TRUE COPY // / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO. 2292 /PUN/20 17 A.Y. 2011 - 12 DATE 1 DRAFT DICTATED ON 12 . 02 .202 1 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 12 . 02 .202 1 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER