ACIT 13(3)(2), MUMBAI V. BIMAL KUMAR AGARWAL, MUMBAI

ITA 3517/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3703 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 23-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: THARIAN OOMMEN
• Keywords: Tax effect
• Section: 271(1)(c); 13

Judgement Text

ITA NO.3517/MUM/2019 A.Y. 2010 - 11 ACIT - 13(3)(2) VS. SHREE BIMAL KUMAR AGGARWAL 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B MUMBAI BEFORE SHRI M BALAGANESH (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO. 3517/MUM/2019 (ASSESSMENT YEAR: 2010 - 11) ACIT - 13(3)(2) ROOM NO. 229/219, 2 ND FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 VS. SHREE BIMAL KUMAR AGGARWAL 19/40/C - 2, SEKSARIA INDL. ESTATE, CHINCHOLI BUNDER, OFF S.V. ROAD, MALAD (WEST) MUMBAI - 400064 PAN NO. ADWPA0759M REVENUE ASSESSEE REVENUE BY : SHRI THARIAN OOMMEN, D.R ASSESSEE BY : NONE DATE OF HEARING : 05 /11/2020 DATE OF PRONOUNCEMENT : 05 /11/2020 ORDER PER RAVISH SOOD, JM : THE PRESENT APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMIS SIONER OF INCOME TAX (APPEALS) - 21 , MUMBAI, [FOR SHORT CIT(A)], DATED 30 .0 3 .2015 , WHICH IN TURN ARIS ES FROM THE PENALTY ORDER PASSED BY THE A.O UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT 1 961, (FOR SHORT ACT), DATED 30.03.2015 . 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMENDED CIRCULAR N O. 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 REDUCING 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 PURPOSE, TAX EFFECT MEANS THE DIFFERENCE BETWEEN THE TAX O N 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 FILED. ITA NO.3517/MUM/2019 A.Y. 2010 - 11 ACIT - 13(3)(2) VS. SHREE BIMAL KUMAR AGGARWAL 2 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 DELETED 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 PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019, DATED 08.08.2019 HAS FIXED THE MONETARY LIMIT FOR FI LING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FILED BY THE DEPARTMENT, THE TAX EFFECT THEREIN INVOLVED IS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . THE SAID FACT WAS BROUGHT TO THE NOTICE OF THE LD. DEPARTMENTAL REPRESENTATIVE (FOR SHORT D.R) WHO DID NOT CONTROVERT THE SAME. IN FACT, ON A SPECIFIC QUERY BY THE BENCH IT WAS FAIRLY ADMITTED BY THE LD. D.R T HAT THE PRESENT APPEAL WAS NOT COVERED BY THE EXCEPTIONS CARVED OUT IN THE CBDT CIRCULAR NO. 17/2019, DATED 08.08.2019. 6 . WITH THE ABOVE OBSERVATIONS THE APPEAL INVOLVING A TAX EFFECT OF LESS THAN RS.50,00,000/ - IS DISMISSED. ORDER PR ONOUNCED IN THE O PEN COURT ON 05 .11.2020 SD/ - SD/ - (M. BALAGANESH) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 05 .11.2020 ROHIT, P.S. ITA NO.3517/MUM/2019 A.Y. 2010 - 11 ACIT - 13(3)(2) VS. SHREE BIMAL KUMAR AGGARWAL 3 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