DCIT -CC-8(1), MUMBAI V. KJB TRADING CO., MUMBAI

ITA 3619/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4899 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 25-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 3619/MUM/2018 ASSESSMENT YEAR: 2010 - 11 DCIT CC - 8(1), ROOM NO. 656, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020. VS. M/S KJB TRADING CO. 307, 3 RD SAGAR AVENUE, S.V. ROAD, OPP. SHOPPERS STOP, ANDHERI (W), MUMBAI - 400058. PAN NO. AAIFK3953C APPELLANT RESPONDENT REVENUE BY : MR. CHAITANYA ANJARIA, DR ASSESSEE BY : MR. M. SUBRAMANIAN, AR DATE OF HEARING : 14/05/2019 DATE OF PRONOUNCEMENT: 27/05/2019 ORDER PER N.K. PRADHAN, AM THE CENTRAL BOARD OF DIRECT TAXES (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.20,00,00 0/ - . 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 INTEN DED TO BE FILED. FURTHER, TAX EFFECT SHALL BE TAXES INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT M/S KJB TRADING ITA NO. 3619/MUM/2018 2 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. 2. IN THE CAPTIONED APPEAL, THE AMOUNT IN DISPUTE IS THE ADDITION OF RS.48,37,622/ - ON ACCOUNT OF CLIENT CODE MODIFICATION (CCM) AND RS.96,752/ - ON ACCOUNT OF COMMISSION EXPENSES FOR CCM. THE INCOME TAX PAYABLE ON THE ABOVE BEFORE INTEREST IS RS.15,24,721/ - AND IT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . 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 T O PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 3. THE LD. DR AGREES THAT THE AMOUNT IN DISPUTE DOES NOT EXCEED THE MO NETARY LIMIT OF RS.20,00,000/ - . 4 . IN TH E RESULT, THE APPEAL IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 27/05/2019. SD/ - SD/ - (MAHAVIR SINGH) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER M/S KJB TRADING ITA NO. 3619/MUM/2018 3 MUMBAI ; DATED: 27.05.2019 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