DCIT 1(2)-1, MUMBAI V. KATHREIN INDIA P. LTD, MUMBAI

ITA 3110/MUM/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4889 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2010-2011
• Appeal Filed On: 28-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH K, MUMBAI , ' ,# $ BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI N.K.PRADHAN, ACCOUNTANT MEMBER . 3110/ / 2017 (. . 2010-11 ) ITA NO.3110/MUM/2017(A.Y.2010-11) DY. COMMISSIONER OF INCOME TAX -1(2)(1), ROOM NO.535, AAYKAR BHAVAN, M.K.ROAD, MUMBAI 400 020 ...... ) / APPELLANT [[ VS. M/S. KATHREIN INDIA P. LTD. 23, JAY MAHAL, A ROAD, CHURCHGATE, MUMBAI 400 020 PAN: AAACA5217G ..... '*/ RESPONDENT C.O.NO.295/MUM/2018 [ARISING OUT OF ITA NO.3110/MUM/2017(A.Y.2010-11)] M/S. KATHREIN INDIA P. LTD. 23, JAY MAHAL, A ROAD, CHURCHGATE, MUMBAI 400 020 PAN: AAACA5217G ...... ) / APPELLANT VS. DY. COMMISSIONER OF INCOME TAX -1(2)(1), ROOM NO.535, AAYKAR BHAVAN, M.K.ROAD MUMBAI 400 020 ..... '*/ RESPONDENT A SSESSEE BY : SHRI NITESH JOSHI REVENUE BY : SHRI SUSHIL KUMAR MISHRA +* / DATE OF HEARING : 21/01/2021 ,-. +* / DATE OF PRONOUNCEMENT : 21/01/2021 2 ITA NO.3110/MUM/2017(A.Y.2010-11) C.O.NO.295/MUM/2018 / ORDER PER VIKAS AWASTHY,JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX APPEALS-56, MUMBAI [IN SHORT CIT(A) ] DATED 24/01/2017 FOR THE ASSESSMENT YEAR 2010-11. THE ASSESSEE HAS FILED CR OSS OBJECTIONS IN THE AFORESAID APPEAL OF THE REVENUE. 2. SHRI NITESH JOSHI, APPEARING ON BEHALF OF THE AS SESSEE SUBMITTED AT THE OUTSET THAT APPEAL FILED BY THE REVENUE SUFFERS FRO M LOW TAX EFFECT IN THE LIGHT OF CBDT CIRCULAR NO. CIRCULAR NO.17/2019 DATED 08/08/ 2019. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED THAT THE ON LY ISSUE RAISED IN THE APPEAL BY REVENUE IS REGARDING DELETING OF ADJUSTMENT ON ACCOUNT OF MANAGEMENT FEE RS.69,42,392/-. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE STATED AT THE BAR THAT IF APPEAL BY THEREVENUE IS DISMISSED ON AC COUNT OF LOW TAX EFFECT, THE CROSS OBJECTIONS FILED BY ASSESSEE WOULD BECOME INF RUCTUOUS. 3. SHRI SUSHEEL KUMAR MISHRA, REPRESENTING THE DEP ARTMENT FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THE APPEAL IS LESS THANRS.50,00,000/-. 4. BOTH SIDES HEARD. UNDISPUTEDLY, THE TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.50,00,000/- I.E. THE MONETARY LIMIT SPECIFI ED BY THE CBDT VIDE CIRCULAR NO.17/2019 DATED 08/08/2019(SUPRA) FOR FILING OF A PPEALS BY THE REVENUE BEFORE THE TRIBUNAL. THE CBDT VIDE CIRCULAR DATED 08-08-2019 (SUPRA) HAS AMENDED PARA 3 OF CIRCULAR NO. 3 OF 2018 DATED 11-0 7-2018 THEREBY ENHANCING MONETARY LIMIT OF TAX EFFECT FROM RS.20 L AKHS TO RS.50 LAKHS FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL. THUS, 3 ITA NO.3110/MUM/2017(A.Y.2010-11) C.O.NO.295/MUM/2018 WITHOUT GOING INTO MERITS OF THE ISSUE RAISED IN TH E APPEAL, THE PRESENT APPEAL BY THE REVENUE IS DISMISSED ON ACCOUNT OF LO W TAX EFFECT. 5. BEFORE PARTING, WE CLARIFY HERE THAT THE REVENU E SHALL BE AT LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF APPEAL, WITH THE REQUISITE MATERIAL TO SHOW THAT THE APPEAL IS PROTECTED BY TH E EXCEPTIONS PRESCRIBED IN PARA 10 OF THE CIRCULAR DATED 11-07-2 018 AND ITS AMENDMENT DATED 20/08/2018. 6. SINCE THE APPEAL OF THE REVENUE IS DISMISSED ON ACCOUNT OF LOW TAX EFFECT, CROSS OBJECTIONS FIELD BY ASSESSEE HAVE BECOME INFR UCTUOUS AND THE SAME ARE DISMISSED, AS SUCH. 7. IN THE RESULT, APPEAL BY REVENUE AND CROSS OBJEC TIONS BY ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY , THE 21 ST DAY OF JANUARY, 2021. SD/- SD/- (N.K.PRADHAN) (VIKAS AWASTHY) # / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI, 0/ DATED /01/2021 VM , SR. PS (O/S) 4 ITA NO.3110/MUM/2017(A.Y.2010-11) C.O.NO.295/MUM/2018 '*12.* COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. '* / THE RESPONDENT. 3. 3* ( )/ THE CIT(A)- 4. 3* CIT 5. 45'* , . . . , / DR, ITAT, MUMBAI 6. 56789 / GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI