ACIT 28(3) , NAVI MUMBAI V. M/S SHREE MUKUND ASSOCIATES, NAVI MUMBAI

ITA 2986/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2838 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 07-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T S KHALSA SR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G , MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA NO. 2986/MUM/2019 : A.Y : 2014 - 15 ASSTT. COMMISSIONER OF INCOME TAX 28(3), MUMBAI. (APPELLANT) VS. M/S. SHREE MUKUND ASSOCIATES 1/2 SHAKTI ARCADE, PLOT 5, SECTOR 19D, VASHI, NAVI MUMBAI 400 705. PAN : ABFFS7517N (RESPONDENT) APPELLANT BY : SHRI T.S. KHALSA, SR. AR RESPONDENT BY : NONE DATE OF HEARING : 24/02/2021 DATE OF PRONOUNCEMENT : 19 /0 5 /2021 O R D E R PER SHAMIM YAHYA, AM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 26, MUMBAI (IN SHORT THE CIT(A)) DATED 08.02.2019 AND PERTAINS TO ASSESSMENT YEAR 2014 - 15. 2. THE GROUNDS OF APPEAL READ AS UNDER : - (1) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF NOTIONAL RENT @ 8% OF THE CLOSING STOCK AMOUNTING TO RS.1,21,69,745/ - MADE BY A.O RELY ON THE DECISION OF HON'BLE ITAT G BENCH MUMBAI DATED 27.06.2018 IN THE CASE OF ARIHANT ESTATES PVT. LTD. ? (2) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF NOTIONAL RENT @ 5% PROFIT ESTIMATED ON 2 ITA NO. 2986/MUM/2019 M/S. SHREE MUKUND ASSOCIATES LAND VALUE AMOUNTING TO RS.11,67,985/ - BY HOLDING THAT THE METHOD OF ACCOUNTING ADOPTED BY THE ASSESSEE NEEDS NO INTERVENTION ? (3) THE APPELLANT PRAYS THAT THE ORDER OF LD. CIT(A) ON THE ABOVE GROUNDS BE REVERSED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. AT THE OUTSET, IT IS NOTED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT OF R S.50,00,000/ - FIXED BY THE CBDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 FOR FILING APPEAL BEFORE THE ITAT. HENCE, THIS APPEAL BY THE REVENUE IS NOT MAINTAINABLE. 4. LD. DR COULD NOT DISPUTE THAT THE TAX EFFECT IS BELOW THE SAID LIMIT. HE COULD NOT PO INT OUT THAT THE APPEAL FALLS IN ANY OF THE EXCEPTIONS CARVED IN SAID CIRCULAR. 5. UPON CAREFUL CONSIDERATION, WE FIND THAT AS THE TAX EFFECT IS BELOW THE LIMIT FIXED BY CBDT FOR FILING APPEALS BEFORE THE ITAT, THIS APPEAL BY THE REVENUE IS LIABLE TO BE D ISMISSED IN LIMINE. THE REVENUE WILL HAVE LIBERTY TO SEEK RESTORATION OF THE APPEAL IF THE TAX EFFECT IS FOUND TO BE BEYOND THE ABOVE LIMIT. 6. ACCORDINGLY, THE APPEAL STANDS DISMISSED AS SUCH. ORDER PRONOUNCED UNDER RULE 34(4) OF ITAT RULES ON 1 9 T H M A Y , 2021. SD/ - SD/ - (AMARJIT SINGH) JUDICIAL MEMBER ( SHAMIM YAHYA ) ACCOUNTANT MEMBER MUMBAI, DATE : 1 9 T H M A Y , 20 21 *SSL* 3 ITA NO. 2986/MUM/2019 M/S. SHREE MUKUND ASSOCIATES COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, G BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI