ACIT CEN CIR 42, MUMBAI V. VAMA APPARELS (I) P.LTD, MUMBAI

ITA 3414/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3561 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 09-12-2015
• Assessment Year: 2000-2001
• Appeal Filed On: 02-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI BEFORE SHRI JASON P. BOAZ (AM) AND SHRI SANDEEP GOS AIN (JM) ITA NO. 3414 TO 3415 /MUM/2013 ASSESSMENT YEAR: 2000-01 & 2008-09 THE ACIT CENTRAL CIRCLE - 42 ROOM NO. 655, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI- 400020. VS. M/S. VAMA APPARELS (I) PVT. LTD . KANCHANJUNGA, 72, PEDDAR ROAD, MUMBAI- 400026. PAN : AAACV3456A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. LOVISH KUMAR RESPONDENT BY : NONE DATE OF HEARING: 02/03/2016 DATE OF PRONOUNCEMENT: 02/03/2016 O R D E R PER JASON P. BOAZ, AM THE AFORESAID APPEALS HAVE BEEN FILED BY THE R EVENUE AGAINST THE IMPUGNED ORDERS DATED 31/01/2012 AND 27/01/2012, PA SSED BY THE CIT(A)-38, MUMBAI IN RESPECT OF THE ORDERS OF ASSES SMENT PASSED U/S 143(3) R.W.S. 254 OF THE ACT AND 143(3) OF THE ACT FOR ASSESSMENT YEARS 2000-01 & 2008-09 RESPECTIVELY. 2. THE GROUNDS RAISED IN THESE APPEALS ARE AS UNDER :- 2.1 FOR ASST. YEAR 2000-01 1) 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF 2 ITA NO. 3414 & 3415/MUM/2013 ASSESSMENT YEAR: 2000-01 & 2008-09 RS.23,84,046/- MADE U/S 40A(2)(B) WITHOUT APPRECIAT ING THAT THE ASSESSEE HAD PAID 15% MORE ON GOODS PURCHASED F ROM SISTER CONCERN AND THEREFORE THE PROVISIONS OF SECT ION SEC.40A(2)9B) ARE APPLICABLE TO THE ASSESSEES CASE . THE APPELLANT PRAYS THAT THE ORDER OF THE CIT( A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER A NY GROUND OR ADD A NEW GROUND WHICH MAY BE NECESSARY. 2.2 FOR ASST. YEAR 2008-09 1) 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN ALLOWING ELECTRICITY E XPENSES OF RS. 27,53,684/- IGNORING THE FACT THAT THE LEAVE & LICE NSE AGREEMENT BETWEEN THE LICENSOR M/S. VAMA PVT. LTD. AND THE ASSESSEE COMPANY SHOWS THAT THE ASSESSEE IS LIABLE TO PAY 66% OF THE TOTAL BILL AMOUNT. 2) 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN ALLOWING ELECTRICITY E XPENSES OF RS. 27,53,684/- BY RELYING ON THE FACT THAT FOR A.Y. 20 09-10 THE ASSESSING OFFICER ALLOWED THE CLAIM IN FULL, WITHOU T APPRECIATING THAT THE VERIFICATION REGARDING ENTIRE USE OF THE P REMISES WAS DONE FOR A.Y. 2009-10 AND THE SAME CANNOT BE APPLIE D TO THE INSTANT YEAR. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A ) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3 ITA NO. 3414 & 3415/MUM/2013 ASSESSMENT YEAR: 2000-01 & 2008-09 THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER A NY GROUND OR ADD A NEW GROUND WHICH MAY BE NECESSARY. 3. AT THE OUTSET, IT IS NOTICED THAT, THE DISPUTE D AMOUNT IS ONLY RS. 23,84,040/- FOR ASST. YEAR 2000-01 AND RS. 27,5 3,684/- FOR ASST. YEAR 2008-09 AND THE TAX EFFECT ON THESE AMOU NTS IS MUCH BELOW THE SPECIFIED MONETARY LIMIT OF RS. 10 LAKHS. AS PER THE LATEST CBDT CIRCULAR NO. 21 OF 2015, DATED 10 TH DECEMBER, 2015, NEW GUIDELINES OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT HAS BEEN ISSUED, WHEREBY THE TAX EFFECT FOR FILING OF APPEAL BEFORE THE ITAT HAS BEEN PRESCRIBED AT RS. 10 LAKHS. IN TH E SAID CIRCULAR, IT HAS BEEN SPECIFICALLY CLARIFIED THAT THE SAID IN STRUCTION WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS. ACCORDI NGLY, THESE APPEALS FILED BY THE REVENUE FOR ASST. YEARS 2000-0 1 AND 2008-09 ARE NOT MAINTAINABLE AND ARE DISMISSED IN LIMINE . ORDER PRONOUNCED IN THE OPEN COURT ON 02 ND MARCH, 2016 SD/- SD/- ( SANDEEP GOSAIN ) (JASON P.BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 02/03/2016