Assistant Commissioner of Income tax, Aurangabad V. M/s. Lombardini India Pvt.Ltd., Aurangabad

ITA 2597/PUN/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4631 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 26-08-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 15-11-2016
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, PUNE BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO S . 2597 & 2598 /PUN/20 16 / ASSESSMENT YEAR : 2010 - 11 & 2011 - 12 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 1, AURANGABAD. ....... / APPELLANT / V/S. M/S. LOMBARDINI INDIA PRIVATE LIMITED, PLOT NO. J - 2/1, MIDC , CHIKALTHANA, AURANGABAD PIN - 431 201. PAN : AAACL6740M / RESPONDENT A SSESSEE BY : SHRI RAJENDRA AGIWAL REVENUE BY : SMT. MUGDHA SARDESHPANDE, JCIT / DATE OF HEARING : 26 .0 8 .2019 / DATE OF PRONOUNCEMENT : 26 .0 8 .2019 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THESE TWO APPEALS PREFERRED BY THE REVENUE EMANATES FROM THE ORDERS OF THE LD. CIT(APPEALS) - 13, PUNE DATED 21.07.2016 FOR THE ASSESSMENT YEARS 2010 - 11 & 2011 - 12 AS PER THE GROUNDS OF APPEAL ON RECORD. 2 ITA NO S . 2597 & 2598 /PUN/20 16 A.Y. 2010 - 11 & 2011 - 12 2. THE LD. AR OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE APPEALS OF REVENUE ARE LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT IN TE RMS 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 LIMITS FOR FILING OF APPEALS IN INCOME TAX CASES BEFORE VARIOUS APPELLATE FORUMS. THE EARLIER CBDT CIRCUL AR 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 CBDT CIRCULAR DATED 08.08.2019 FROM RS.20 LAKHS TO RS. 50 LAKHS. THE LD. AR OF THE ASSESSEE POINTED THA T TAX EFFECT INVOLVED IN THE APPEAL IN ITA NO.2597/PUN/2016 FOR ASSESSMENT YEAR 2010 - 11 IS RS.38,72,846/ - AND IN ITA NO.2598/PUN/2016 FOR ASSESSMENT YEAR 2011 - 12 IS RS.37,07,235/ - INCLUDING SURCHARGE AND CESS. THUS, THE TAX EFFECT ON THE ADDITION IS LESS THAN RS.50 LAKHS. 3. THE LD. DR FAIRLY ADMITTED THAT IN THE PRESENT APPEALS BY THE DEPARTMENT TAX EFFECT IS LESS THAN RS.50 LAKHS. 4. BOTH SIDES HEARD. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF LD. CIT(APPEALS) IN DELETING THE ADDITIONS. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THESE APPEALS IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY THE RECENT CBDT CIRCULAR NO. 17/2019 [F NO.279/MISE.142/2007 - ITJ (PT)] DATED 08 - 08 - 2019 RE AD WITH CIRCULAR NO.3 OF 2018 DATED 11.07.2018 FOR FILING OF APPEALS BEFORE THE TRIBUNAL BY THE DEPARTMENT. THE CBDT VIDE CIRCULAR DATED 08.08.2019 (SUPRA.) HAS AMENDED PARA 3 OF CIRCULAR NO.3 OF 2018 DATED 11.07.2018 THEREBY ENHANCING MONETARY LIMIT OF TA X EFFECT FROM RS.20 LAKHS TO RS.50 LAKHS FOR FILING APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, WITHOUT GOING INTO MERIT OF THE ISSUES RAISED IN THE APPEAL, IN VIEW OF THE 3 ITA NO S . 2597 & 2598 /PUN/20 16 A.Y. 2010 - 11 & 2011 - 12 CBDT CIRCULAR (SUPRA) THE PRESENT APPEAL S OF THE REVENUE ARE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENUE SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE 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, APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRO NOUNCED ON 26 TH DAY OF AUGUST , 201 9 . SD/ - SD/ - R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE ; / DATED : 26 TH AUGUST , 2019 . 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. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO S . 2597 & 2598 /PUN/20 16 A.Y. 2010 - 11 & 2011 - 12 DATE 1 DRAFT DICTATED ON 26 .0 8 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 26 .0 8 .201 9 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