DCIT - 16(2), MUMBAI V. BSR & ASSOCIATES LLP, MUMBAI

ITA 3252/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2800 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 16-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NISHANT SAMAIYA
• Assessee Lawyers: ABHISHEK TILAK; ARIJIT CHAKARAVARTY
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I MUMBAI BEFORE SHRI RAVISH SOOD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 3252/MUM/2018 ASSESSMENT YEAR: 2013 - 14 & ITA NO. 1235/MUM/2018 ASSESSMENT YEAR: 2014 - 15 DY. COMMISSIONER OF INCOME TAX - 16(2), ROOM NO. 479, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020. VS. M/A BSR & ASSOCIATES LLP, LODHA EXCELUS, 1 ST FLOOR, APPOLLO MILLS COMPOUND, N M JOSHI MARG, MAHALAKSHMI MUMBAI - 400011. PAN NO. AADFB6889R APPELLANT RESPONDENT ITA NO. 3253 /MUM/2018 ASSESSMENT YEAR: 2013 - 14 DY. COMMISSIONER OF INCOME TAX - 16(2), ROOM NO. 479, 4 TH FLOOR, AAYAKARBHAVAN, M.K. ROAD, MUMBAI - 400020. VS. M/A BSR & ASSOCIATES LLP, LODHAEXCELUS, 1 ST FLOOR, APPOLLO MILLS COMPOUND, N M JOSHI MARG, MAHALAKSHMI MUMBAI - 400011. PAN NO. AAIFB7355D APPELLANT RESPONDENT ITA NO. 3255/MUM/2018 ASSESSMENT YEAR: 2014 - 15 DY. COMMISSIONER OF INCOME TAX - 16(2), ROOM NO. 479, 4 TH FLOOR, AAYAKARBHAVAN, M.K. ROAD, MUMBAI - 400020. VS. M/A BSR & ASSOCIATES LLP, LODHAEXCELUS, 1 ST FLOOR, APPOLLO MILLS COMPOUND, N M JOSHI MARG, MAHALAKSHMI M/S BSR & ASSOCIATES ITA NOS. 3252, 1235, 3253, 3255, 3256/MUM/2018 2 MUMBAI - 400011. PAN NO. AAIFB4734C APPELLANT RESPONDENT ITA NO. 3256/MUM/2018 ASSESSMENT YEAR: 2014 - 15 DY. COMMISSIONER OF INCOME TAX - 16(2), ROOM NO. 479, 4 TH FLOOR, AAYAKARBHAVAN, M.K. ROAD, MUMBAI - 400020. VS. M/A BSR & ASSOCIATES LLP, LODHAEXCELUS, 1 ST FLOOR, APPOLLO MILLS COMPOUND, N M JOSHI MARG, MAHALAKSHMI MU MBAI - 400011. PAN NO. AAIFB0630K APPELLANT RESPONDENT REVENUE BY : MR. NISHANT SAMAIYA, DR ASSESSEE BY : MR. ARIJIT CHAKARAVARTY & MR. ABHISHEK TILAK , AR S DATE OF HEARING : 29 /08/2019 DATE OF PRONOUNCEMENT: 29/08/2019 ORDER PER BENCH THE CAPTIONED APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF THE COMMIS SIONER OF INCOME TAX (APPEALS) - 5 , MUMBAI [IN SHORT CIT(A)] AND ARISE OUT OF THE ASSESSMENT COMPLETED U/S 143 OF THE INCOME TAX ACT 1961 (THE ACT). AS COMMON ISSUES ARE INVOLVED, WE ARE PROCEEDING TO DISPOSE THEM OFF THROUGH A CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. M/S BSR & ASSOCIATES ITA NOS. 3252, 1235, 3253, 3255, 3256/MUM/2018 3 2. CENTRAL BOARD OF DIRECT TAXE S (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR RED UCING LITIGATION. 3. CBDT VIDE CIRCULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . FOR THIS PURCHASE, TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FIL ED. FURTHER, TAX EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY D ELETED OR REDUCED IN THE ORDER TO BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR, IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO M/S BSR & ASSOCIATES ITA NOS. 3252, 1235, 3253, 3255, 3256/MUM/2018 4 PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PAR A 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. BEFORE US, THE LD. DEPARTMENTAL REPRESENTAT IVE (DR) AND THE LD. COUNSELS FOR THE ASSESSEE SUBMIT THAT THE TAX EFFECT IN THE AFOREMENTIONED APPEALS IS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . 6 . IN THE RESULT, THE ABOVE APPEAL S INVOLVING TAX EFFECT OF LESS THAN RS.50,00,000/ - ARE DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT 29/08/2019. SD/ - SD/ - ( RAVISH SOOD ) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 29/08/2019 RAHUL SHARMA, SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT, MUMBAI