DCIT CEN CIR 2, THANE V. PRATIK BUILDERS AND ESTATE DEVELOPERS P.LTD, PUNE

ITA 3059/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3518 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 02-05-2014
• Court: TRIBUNAL
• Assessee Lawyers: B N RAO
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, , C, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.3059/MUM/2014 ASSESSMENT YEAR: 2008-09 D C IT CEN CIR 2 R.NO.13, 6 TH FLOOR, ASHAR IT PARK, WAGLE ESTATE, THANE(W) / VS. PRATIK BUILDERS AND ESTATE DEVELOPERS P. LTD. G-1, SAMARTH PARK, DINGHAD RD, ANANDNAGAR PUNE-411051 (REVENUE) (RESPONDENT) P.A. NO. AACCP5501A REVENUE BY SHRI MUKESH JAIN (DR) RESPONDENT BY SHRI B.N. RAO (AR) ! ' # / DATE OF HEARING : 28/04/2016 ' # / DATE OF ORDER: 25/05/2016 / O R D E R PER ASHWANI TANEJA (ACCOUNTANT MEMBER): THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEAL S)-I, PRATIK BUILDERS & ESTATE DEVELOPERS P. L. 2 MUMBAI {(IN SHORT CIT(A)}, DATED 29.01.2014 FOR T HE ASSESSMENT YEAR 2008-09, DECIDED AGAINST THE ASSESS MENT ORDER PASSED BY THE ASSESSING OFFICER (IN SHORT AO ) U/S 143(3) OF THE ACT. 2. DURING THE COURSE OF HEARING, ARGUMENTS WERE MADE B Y SHRI B.N. RAO, AUTHORISED REPRESENTATIVE (AR) ON BE HALF OF THE ASSESSEE AND BY SHRI MUKESH JAIN, DEPARTMENTAL REPRESENTATIVE (DR) ON BEHALF OF THE REVENUE. 3. THE MAIN ISSUE RAISED IN THIS APPEAL IS WITH REGARD TO ALLEGED FAILURE OF THE ASSESSEE IN DEDUCTION OF TAX AT SOURCE WHILE MAKING THE PAYMENT BY THE ASSESSEE AND ITS CO NSEQUENT DISALLOWANCE U/S 40(A)(IA). 3.1. THOUGH, DURING THE COURSE OF HEARING APPEAL WAS HE ARD ON MERITS, BUT SUBSEQUENTLY IT HAS BEEN BROUGHT TO OUR NOTICE THAT RECENTLY CENTRAL BOARD OF DIRECT TAXES HAD ISS UED CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 PROVIDING THAT THE REVENUE IS NOT PERMITTED TO FILE AN APPEAL WHEREIN TAX EFFECT INVOLVED IS OF LESS THAN RS 10,00,000/-. 3.2. IT IS NOTED BY US THAT TAX EFFECT IN THIS CASE IS APPARENTLY LESS THAN RS. 10,00,000/-. 3.3. WE HAVE GONE THROUGH THE AFORESAID CIRCULAR OF THE BOARD. IT HAS BEEN PROVIDED IN THE AFORESAID CIRCULAR THAT NO APPEAL SHALL BE FILED BY THE REVENUE IF THE TAX EFFECT INV OLVED IN THE PRATIK BUILDERS & ESTATE DEVELOPERS P. L. 3 APPEAL DOES NOT EXCEED A SUM OF RS. 10 LACS. IT HAS FURTHER BEEN PROVIDED THAT INSTRUCTIONS CONTAINED THEREIN S HALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. RELEVANT P ART OF THE CIRCULAR IS REPRODUCED BELOW: 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/ TRIBUNAL. 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 AP PEAL WAS FILED. 3.4. IT IS FURTHER NOTED BY US FROM THE ORDER OF LD. C IT(A) THAT TAX EFFECT IN THIS CASE IS LESS THAN THE AMOUNT OF RS.10,00,000/-. AS PER LAW, CIRCULAR OF CBDT HAS BI NDING EFFECT ON THE INCOME TAX AUTHORITIES. 3.5. IN VIEW OF THE ABOVE, WE FIND THAT THE APPEAL OF T HE REVENUE IS NOT MAINTAINABLE. THEREFORE, WE DISMISS THE SAME. 3.6. HOWEVER, WITH A VIEW TO FOLLOW PRINCIPLES OF NATUR AL JUSTICE, WE GIVE LIBERTY TO THE REVENUE TO FILE MIS CELLANEOUS APPLICATION U/S 254 IN CASE TAX EFFECT IS FOUND TO BE MORE THAN RS. 10,00,000/-. PRATIK BUILDERS & ESTATE DEVELOPERS P. L. 4 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE CONCLUSION OF HEARING OF THIS CASE. SD/- (JOGINDER SINGH) SD/- (ASHWANI TANEJA) ! / JUDICIAL MEMBER ' ! / ACCOUNTANT MEMBER ! MUMBAI; % DATED : 25/05/2016 CTX? P.S/. . . #$%&'(')% / COPY OF THE ORDER FORWARDED TO : 1. '() / THE APPELLANT 2. *+() / THE RESPONDENT. 3. , , - ( ' ) / THE CIT, MUMBAI. 4. , , - / CIT(A)- , MUMBAI 5. 01 *2 , , '# 23 , ! / DR, ITAT, MUMBAI 6. 45 6! / GUARD FILE. / BY ORDER, +0' * //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ! / ITAT, MUMBAI