ACIT CIR 11(3)(2), MUMBAI V. WESTEX INFOTECH P.LTD, MUMBAI

ITA 3037/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4381 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 27-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL K BENCH, MUMBAI BEFORE S/ SHRI B.R.BASKARAN (AM) & AMARJIT SINGH (JM) I.T.A. NO. 3037 /MUM /20 1 7 (ASSESSMENT YEAR 20 0 9 - 1 0 ) ACIT, CIRCLE - 11(3)(2) AAYAKAR BHAVAN 4 TH FLOOR, M.K. ROAD MUMBAI - 400 020. VS. M/S. WESTEX INFOTECH PVT. LTD. 1205, DALAMAL TOWERS NARIMAN POINT MUMBAI - 400 021. PAN : AAACW5913B ( APPELLANT ) ( RESPONDENT ) I.T.A. NO. 3043/MUM/2017 (ASSESSMENT YEAR 2011 - 12) DCIT - (3)(3)(2) AAYAKAR BHAVAN 6 TH FLOOR, M.K. ROAD MUMBAI - 400 020. VS. M/S. UNITED OCEAN SHIP MANAGEMENT PVT. LTD. 701 - 702, THE QUBE OFF. SAHAR INTERNATIONAL AIRPORT APPROACH ROAD PLOT NO. 1498, A/2 ANDHERI EAST MUMBAI - 400 059. PAN : AAACU7942A ( APPELLANT ) ( RESPONDENT ) I.T.A. NO. 3037/MUM/2017 (ASSESSMENT YEAR 2009 - 10) D CIT, CIRCLE - 11( 2 )( 1 ) AAYAKAR BHAVAN 4 TH FLOOR, M.K. ROAD MUMBAI - 400 020. VS. M/S. SHREE RIDDHI CHEMICALS PVT. LTD. 1 ST FLOOR, HRONBY VIEW BUILDING, 12 RUSTOM SIDHWA MARG, FORT MUMBAI - 400 001. PAN : AA DCS0750K ( APPELLANT ) ( RESPONDENT ) 2 I.T.A. NO. 3077/MUM/ 2017 (ASSESSMENT YEAR 2010 - 11) ITO 26(1)(3) C - 11, 7 TH FLOOR BKC, BANDRA EAST MUMBAI - 400 051. VS. SMT. CHHAYA KIRAN SHETH B11/8, AVANTIAPARTMENTS FLANK ROAD, SION EAST MUMBAI - 400022. PAN : AACPS2823D ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE D EPARTMENT BY SHRI MANOJ KUMAR DATE OF HEARING 3 . 8 . 201 8 DATE OF PRONOUNCEMENT 3 . 8 . 201 8 O R D E R PER B ENCH : - THE REVENUE HAS FILED THESE APPEALS CHALLENGING THE ORDERS PASSED BY LD CIT(A) IN THE RESPECTIVE HANDS OF THE ASSESSEES AND THEY RELA TE TO THE ASSESSMENT YEARS MENTIONED IN THE CAPTION AGAINST THE NAME OF EACH OF THE ASSESSEES. IN ALL THESE APPEALS, THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN GRANTING RELIEF TO THE RESPECTIVE ASESSEES. 2. THESE APPEALS WERE HEARD EX - PARTE. WE NOTICED THAT THE QUANTUM IN DISPUTE INVOLVED IN THESE APPEALS IS AS GIVEN BELOW AND HENCE THE TAX EFFECT INVOLVED THEREIN IS LESS THAN RS.20.00 LAKHS. NAME OF ASSESSEE QUANTUM IN DISPUTE PENALTY AMOUNT WESTEX INFOTECH PVT. LTD. 57,06,098 - UNITED OCEAN SHIP MANAGEMENT PVT. LTD. 57,84,679 - SHREE RIDDHI CHEMICALS PVT. LTD. - 12,10,011 CHHAYA KIRAN SHETH 60,36,395 - THE CBDT HAS ISSUED A NEW CIRCULAR NO.3/2018 DATED 11.07.2018 IN SUPERSESSION OF ITS EARLIER CIRCULAR NO.21/2015 DATED 10.12 .2015. ACCORDING TO THE CIRCULAR NO.3/2018, THE REVENUE IS PRECLUDED FROM PURSUING ITS APPEAL IF THE TAX EFFECT IS RS.20.00 LAKHS OR LESS. APPARENTLY THE ISSUE IN DISPUTE DOES 3 NOT FALL IN ANY OF THE EXCEPTIONS PROVIDED IN PARAGRAPH 10 OF THE CIRCULAR NO. 3/2018, REFERRED ABOVE. THE LD D.R, HOWEVER, SOUGHT TIME TO GET A CERTIFICATE FROM THE PCIT/CIT CONCERNED THAT THE GROUNDS URGED IN THIS APPEAL DOES NOT FALL UNDER ANY OF THE EXCEPTIONS SPECIFIED IN THE SAID CIRCULAR. HOWEVER, FROM THE AVAILABLE MATERIAL, HE COULD NOT POINT OUT THAT THE ISSUE CONTESTED IN THIS APPEAL FALL IN ANY OF THE EXCEPTIONS. 3. WE HAVE NOTICED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.20.00 LAKHS AND THE ISSUE CONTESTED HEREIN ALSO APPARENTLY DOES NOT FALL IN AN Y OF THE EXCEPTIONS SPECIFIED IN THE CIRCULAR. ACCORDINGLY WE DISMISS THE APPEAL S OF THE REVENUE IN LIMINE. HOWEVER, THE REVENUE IS GIVEN LIBERTY TO MOVE MISCELLANEOUS APPLICATION SEEKING RECALL OF THIS ORDER, IF IT IS FOUND THAT THE ISSUE CONTESTED IN THI S APPEAL FALLS IN ANY OF THE EXCEPTION PROVIDED IN PARAGRAPH 10 OF THE CIRCULAR. 4. IN THE RESULT, ALL THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 3 . 8 .201 8 . SD/ - SD/ - (AMARJIT SINGH ) ( B.R. BASKARA N) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 3 / 8 / 20 1 8 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CI T 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI