ACIT-8(1)(1), MUMBAI V. REDIFF.COM INDIA LTD., MUMBAI

ITA 32/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5900 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 03-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RUCHITA JAIN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.32/M/2019 ASSESSMENT YEAR: 2014-15 ACIT 8(1)(1), ROOM NO.624, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 VS. M/S. REDIFF.COM INDIA LTD., 1 ST FLOOR, MAHALAXMI INDUSTRIAL ESTATE, L.J. ROAD NO.1, MAHIM (W), MUMBAI 400 099 PAN: AAACR2762F (APPELLANT) (RE SPONDENT) ITA NO.43/M/2019 ASSESSMENT YEAR: 2014-15 M/S. REDIFF.COM INDIA LTD., 1 ST FLOOR, MAHALAXMI ENGINEERING STATE, MAHIM (W), MUMBAI 400 099 PAN: AAACR2762F VS. ACIT 8(1)(2), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 (APPELLANT) (RE SPONDENT) PRESENT FOR: ASSESSEE BY : MS. RUCHITA JAIN, A.R. REVENUE BY : SHRI BHARAT ANDHALE, D.R. DATE OF HEARING : 01.09.2021 DATE OF PRONOUNCEMENT : 14.09.2021 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE ABOVE TITLED CROSS APPEALS ONE BY THE ASSESSEE AND THE OTHER BY THE REVENUE HAVE BEEN PREFERRED AGAINST TH E ORDER DATED 27.08.2018 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT YEAR 2014-15. ITA NO.32/M/2019 & ORS. M/S. REDIFF.COM INDIA LTD. 2 ITA NO.32/M/2019 (REVENUES APPEAL) 2. AT THE OUTSET, IT IS BROUGHT TO THE NOTICE OF TH E BENCH BY THE LD A.R. THAT THE CBDT RECENTLY HAS AMENDED THE CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018 VIDE CIRCULAR NO. 17/20 19, F.NO. 279/MISC.142/2007-ITJ(PT.) DATED 08.08.2019 INCREAS ING THE LIMIT FOR FILING OF APPEAL BEFORE INCOME TAX APPELL ATE TRIBUNAL I.E. 50 LACS IN EACH OF THE CASE. WE NOTED THAT EARLIER CIRCULAR NO. 3 OF 2018 WAS MADE APPLICABLE TO PENDING APPEALS ALSO AND THIS CLAUSE OF THE CIRCULAR REMAINS UNCHANGED EVEN AFTER THE AMENDMENT. ADMITTEDLY, IN THIS CASE TAX EFFECT IS B ELOW THE PRESCRIBED LIMIT FOR FILING THE APPEAL BEFORE THE T RIBUNAL BY THE REVENUE I.E. 50 LACS. 3. WHEN THIS WAS CONFRONTED TO THE LEARNED DEPARTME NTAL REPRESENTATIVE, HE COULD NOT POINT OUT THAT THIS AP PEAL FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN CIRCULAR NO. 17 OF 2019. ADMITTEDLY, THE TAX EFFECT IN THIS APPEAL OF REVENUE IS MUCH BELOW THE PRESCRIBED LIMIT OF 50 LACS AS PER CBDT CIRCULAR NO. 17 OF 2019. IN VIEW OF THE ABOVE, THIS APPEAL OF REVENUE IS DISMISSED AS WITHDRAWN IN VIEW OF CIRCUL AR NO. 17 OF 2019. 4. NOW, BEFORE US, THE LEARNED CIT DEPARTMENTAL REPRESENTATIVE ONLY REQUESTED THAT HE WANTS TO VERI FY WHETHER THIS APPEAL FALLS UNDER ANY OF THE EXPLANATION PROV IDED IN CBDT CIRCULAR NO. 3/2018. HERE, WE ARE GIVING LIBERTY TO REVENUE THAT IN CASE, AFTER PASSING OF THE ORDER IT COMES TO THE NOTICE OF THE REVENUE THAT THIS APPEAL DOES NOT FALL UNDER ANY EX PLANATION OF THE CBDT BY 3/18, THE AO CAN MOVE FOR RECALLING OF THE ORDER WITHIN THE PRESCRIBED TIME LIMIT UNDER SECTION 254 OF THE ACT. ITA NO.32/M/2019 & ORS. M/S. REDIFF.COM INDIA LTD. 3 HENCE, THIS APPEAL IS DISMISSED AS LOW TAX EFFECT C OVERED BY CBDT CIRCULAR NO. 17/2019. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ITA NO.43/M/2019 (ASSESSEES APPEAL) 6. AT THE OUTSET, THE LD. COUNSEL OF THE ASSESSEE B ROUGHT TO THE NOTICE OF THE BENCH THAT THE ASSESSEE HAS GONE INTO VIVAD SE VISHWAS SCHEME AND ALSO SUBMITTED THAT FORM NO.3 ALS O HAS ALREADY BEEN ISSUED. THE LD. A.R., THEREFORE, PRAY ED BEFORE THE BENCH THAT APPEAL MAY KINDLY BE ALLOWED TO BE WITHD RAWN. 7. THE LD. D.R. FAIRLY CONCEDED TO THE WITHDRAWAL O F THE APPEAL. 8. ACCORDINGLY, WE ARE INCLINED TO DISMISS THE APPE AL OF THE ASSESSEE. 9. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS DISMI SSED AS WITHDRAWN. 10. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE AS WELL AS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.09.2021. SD/- SD/- (SAKTIJIT DEY) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 14.09.2021. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI ITA NO.32/M/2019 & ORS. M/S. REDIFF.COM INDIA LTD. 4 THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY /ASSTT. REGISTRAR, ITAT, MUMBAI.