ITO 15(2)(1), MUMBAI V. ARVIND ENGINEERING WORKS, MUMBAI

ITA 2446/MUM/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4431 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 06-01-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 28-03-2011
• 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 . 3625 / MUM/ 201 0 ( / ASSESSMENT YEA R : 20 06 - 07 ) INCOME TAX OFFICER 25(3)(3), ROOM NO. 304 , C - 1 1 BLDG., PRATYAKSHAKAR BHAVAN, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 400051 / VS. AMRUTLAL CHITALIA (HUF) B - 801, JYOTI PARK, M G ROAD, NO.1, BORIVALI (W), MUMBAI - 400067 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AADHA5099B ./ I.T.A. NO . 2446 / MUM/ 201 1 ( / ASSESSMENT YEA R : 200 7 - 08 ) INCOME TAX OFFICER, 15(2)(1), ROOM NO.111, 1 ST FLOOR, MATRU MANDIR, OPP BHATIA HOSPITAL, TARDEO RO AD, MUMBAI - 400007 / VS. M/S ARVIND ENGINEERING WORKS, 25 TH KHAMBATTA LANE, 7 TH KHETWADI, GR.FLOOR, MUMBAI - 400004 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AAGFA1165N ./ I.T.A. NO . 5579 / MUM/ 201 3 ( / ASSESSMENT YEA R : 20 09 - 10 ) ASSTT.COMMISSIONER OF INCOME TAX - 12(3), ROOM NO.137, 1ST FLOOR, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020. / VS. M/S KHIMJI VISRAM AND SONS, (COMMISSION DEPT), 21, MITTAL CHAMBERS, 228, NARIMAN POINT, MUMBAI - 400021 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AAAFK4773G ITA NO. . 3625/MUM/2010 AND OTHER FOUR CASES 2 ./ I.T.A. NO . 7898 / MUM/ 201 0 ( / ASSESSMENT YEA R : 20 0 6 - 07 ) INCOME TAX OFFICER 9(2)(2), ROOM NO.225, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020 / VS. M/S KALZOOM TECHNOLOGIES PVT LTD., B - 301, MONROPOS, BAYRAMJEE JEEJE BHOY ROAD, BANDRA, MUMBAI - 400050 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AACCK0167F ./ I.T.A. NO . 2200 / MUM/ 20 06 ( / ASSESSMENT YEA R : 20 0 2 - 03 ) DY.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE - 3, 9 TH FLOOR, OLD CGO BLDG ANNEX , M K ROAD, MUMBAI - 400020 / VS. MRS MADHU GUPTA , G G HOUSE, 42, IRISH PARK, JUHU, MUMBAI - 400049 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : ADNPG1712D / REVENUE BY SHRI MANOJ KUMAR / ASSESSEE BY I.T.A. NO.3625/M/10 SHRI HARSH KOTHARI I. T.A.NO.2446/MUM/11 NONE I .T.A. NO.5579/M/13 SH.GOVIND JAVERI I .T.A.NO.7898/M/10 MS.NEHA PARANJAPE I.T.A.NO.2200/M/06 MS.USHA DALAL / DATE OF HEARING : 6.1. 201 6 / DATE OF PRONOU NCEMENT: 6.1.2016 ITA NO. . 3625/MUM/2010 AND OTHER FOUR CASES 3 / O R D E R P ER 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 TH E TAX EFFECT INVOLVED IN ALL THESE APPEALS ON THE DISPUTED ISSUES IS LESS THAN RS.10.00 LACS. FOR THE SAKE OF CONVENIENCE, WE TABULATE BELOW THE RELEVANT DETAILS: - S.NO. NAME OF ASSESSEE AMOUNT IN DISPUTE(FOR QUANTUM APPEAL ) IN RS. 1 AMRUTLAL CHITALIA (HUF) 13,99,387 2 M/S ARVIND ENGINEERING WORKS 19,97,677 3 M/S KHIMJI VISRAM AND SONS 20,48,759 4 M/S KALZOOM TECHNOLOGIES PVT LTD., 25,97,937 5 MRS MADHU GUPTA 12,50,206 3 . WE NOTICE THAT THE REVENUE IS CONTE STING 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 AMOUNT S 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 PRE SCRIBING 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 NEW DELHI THE 10TH DECEMBER, 2015 SUB : REV ISION OF MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL AND HIGH ITA NO. . 3625/MUM/2010 AND OTHER FOUR CASES 4 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 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 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 SHA LL 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 COUR T 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. FOR THIS PURPOSE, 'TA X EFFECT' MEANS THE DIFFERENCE BETWEEN THE TAX ON THE 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 (HEREIN AFTER 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 T HE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED 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 APPE ALED AGAINST. 5. . 6 7. 8. . ITA NO. . 3625/MUM/2010 AND OTHER FOUR CASES 5 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/INSTR UCTION SHALL APPLY RETROSPECTIVELY, I.E., EVEN TO THE 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 IT R 231). HENCE, THE LATEST CIRCULAR ISSUED BY THE CBDT (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 THI S APPEAL IS LESS THAN RS.10 LAKHS. ACCORDINGLY, WE DISMISS THE APPEAL FILED BY THE REVENUE. 5 . IN THE RESULT, ALL THE APPEAL S OF THE REVENUE ARE DISMISSED. PRONOUNCED ACCORDINGLY ON 6 TH JAN 201 6 . 6 TH JAN 201 6 SD SD ( AMARJIT SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 6 TH JAN 201 6 . . . ./ SRL , SR. PS ITA NO. . 3625/MUM/2010 AND OTHER FOUR CASES 6 / 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