ACIT 3(1)(1), MUMBAI V. BAJAJ HINDUSTAN SUGAR LTD, MUMBAI

ITA 2727/MUM/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3994 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 17-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 13

Judgement Text

ITA NO.2727/MUM/2017 & C.O. NO.264/MUM/2018 A.Y. 2009 - 10 ACIT - 3(1)(1) VS. M/S BAJAJ HINDUSTAN SUGAR LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B MUMBAI BEFORE SHRI M BALAGANESH (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO. 2727/MUM/2017 C.O. NO.264/MUM/2018 (ARISING OUT OF ITA NO.2727/MUM/2017) (ASSESSMENT YEAR: 2009 - 10 ) ACIT - 3(1 )(1), ROOM NO. 607, 6 TH FLOOR , AAYAKAR BHAVAN, MUMBAI 400 020 VS. M/S BAJAJ HINDUSTAN SUGAR LTD. (FORMERLY KNOWN BAJAJ HINDUSTAN LTD.) 2 ND FLOOR, BAJAJ BHAVAN, 226, NARIMAN POINT, MUMBAI 400 021 PAN NO. AAACB4351J REVENUE ASSESSEE REVENUE BY : MS. KAVITA KAUSHIK , D.R ASSESSEE BY : SHRI NITESH JOSHI , A.R DATE OF HEARING : 03/11 /2020 DATE OF PRONOUNCEMENT : 03 / 11/ 2020 ORDER PER BENCH: THE CAPTIONED APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISS IONER OF INCOME TAX (APPEALS) - 8 , [FOR SHORT CIT(A)], MUMBAI, DATED 13.12.2016 , WHICH IN TURNS ARISES FROM THE ASSESSMENT ORDER PASSED BY THE A.O UNDER SECTION 143(3) R.W.S 147 OF THE INCOME TAX ACT 1961, (FOR SHORT ACT), DATED 25.03.2014 . 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 3. CBDT VIDE CIRCULAR NO. 3/20 18 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFFERENCE BETWEE N THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN ITA NO.2727/MUM/2017 & C.O. NO.264/MUM/2018 A.Y. 2009 - 10 ACIT - 3(1)(1) VS. M/S BAJAJ HINDUSTAN SUGAR LIMITED 2 REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. FURTHER, TAX EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. 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 UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX E FFECT. 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 ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR, IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CR OSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019, DATED 08.08.2019 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FILED BY THE DEPARTMENT, IT WAS AVERRED BY THE LD. A.R THAT THE TAX EFFECT THEREIN INVOLVED WAS BELOW THE M ONETARY LIMIT OF RS.50,00,000/ - . THE SAID FACT WAS BROUGHT TO THE NOTICE OF THE LD. DEPARTMENTAL REPRESENTATIVE (FOR SHORT D.R) WHO DID NOT CONTROVERT THE SAME. 6. INSOFAR THE CROSS OBJECTION FILED BY THE ASSESSEE IS CONCERNED, IT WAS STATED BY THE LD. AUTHORIZED REPRESENTATIVE (FOR SHORT A.R) FOR THE ASSESSEE THAT PURSUANT TO THE DISMISSAL OF THE REVENUES APPEAL, THE SAID CROSS - OBJECTION HAVING BEEN RENDERED AS INFRUCTUOUS MAY THEREIN BE PERMITTED TO BE WITHDRAWN. ACCORDINGLY, IN THE BACKDROP OF THE A FORESAID CONCESSION OF THE LD. A.R THE CROSS - OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. 7 . WITH THE ABOVE OBSERVATIONS THE APPEAL INVOLVING A TAX EFFECT OF LESS T HAN RS.50,00,000/ - IS DISMISSED, AND THE CROSS OBJECTION FILE D BY THE ASSESS EE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 03 .11 .2020 SD/ - SD/ - ( M. BALAGANESH ) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 03 .11 .2020 ROHIT, P.S. ITA NO.2727/MUM/2017 & C.O. NO.264/MUM/2018 A.Y. 2009 - 10 ACIT - 3(1)(1) VS. M/S BAJAJ HINDUSTAN SUGAR LIMITED 3 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// (SR. PRIVATE SECRETARY) ITAT, MUMBAI