ITO WD 1(3), KALYAN V. NOVA COSMATICS P.LTD, MUMBAI

ITA 3622/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1007 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 12-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK LD
• Assessee Lawyers: SUBODH RATNAPARKHI LD
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

ITA NO.3622/M/2015 NOVA COSMETICS PRIVATE LIMITED ASSESSMENT YEAR 2010-11 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.3622/MUM/2015 ( / ASSESSMENT YEAR: 2010-11) INCOME TAX OFFICER WARD 1(3), KALYAN 1 ST FLOOR, MOHAN PLAZA WAYALE NAGAR KHADAKPADA, KALYAN MUMBAI / VS. NOVA COSMETICS PRIVATE LIMITED B-80 ADDITIONAL MIDC ANAND NAGAR AMBERNATH (E) MUMBAI- 421 506 !' ./ ./PAN/GIR NO. AABCN-1871-C ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) '$ / APPELLANT BY : DR. A.K. NAYAK, LD.DR %&'$ / RESPONDENT BY : SHRI SUBODH RATNAPARKHI, LD. AR / DATE OF HEARING : 24/04/2017 / DATE OF PRONOUNCEMENT : 24 /04/2017 ITA NO.3622/M/2015 NOVA COSMETICS PRIVATE LIMITED ASSESSMENT YEAR 2010-11 2 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY REVENUE FOR ASSESSMENT YE AR [AY] 2010-11 ASSAILS THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, [CIT(A)], THANE DATED 02/03/2015 QUA DELETION OF CERTAIN ADDITIONS MADE BY ASSESSING OFF ICER [AO] WITH RESPECT TO SUNDRY CREDITORS. 2. BRIEFLY STATED THE ASSESSEE, BEING RESIDENT CORP ORATE ASSESSEE, WAS SUBJECTED TO AN ASSESSMENT U/S 143(3) VIDE AO ORDER DATED 25/03/201 3 WHEREIN THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED AT RS.2,64,88,580/- AFTER C ERTAIN ADJUSTMENTS/DISALLOWANCES AS AGAINST LOSS RETURN OF RS.6,90,477/- FILED BY THE A SSESSEE ON 27/09/2010. THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF MANUFACTURING AND EX PORT OF COSMETICS PRODUCTS. IT SUFFERED AN ADDITION OF RS.13,23,016/- ON ACCOUNT O F CERTAIN DISCREPANCIES FOUND IN THE ACCOUNT OF A SUNDRY CREDITOR WHICH, UPON APPEAL, WA S ALLOWED BY THE LD. CIT(A) AND THE REVENUE HAS CONTESTED THE SAME BEFORE US. 3. AT THE OUTSET, IT HAS BEEN BROUGHT TO OUR NOTICE THAT THE APPEAL, BEING REVENUES APPEAL, IS COVERED BY THE LOW TAX EFFECT CIRCULAR ISS UED BY THE CBDT. AS PER CALCULATIONS, IT IS SEEN THAT THE TAX EFFECT OF AMO UNT IN DISPUTE IN THE APPEAL IS BELOW RS.10 LACS AND HENCE THE SAME IS COVERED BY LATEST C BDT CIRCULAR NUMBER 21 OF 2015 DATED 10/12/2015. AS PER THIS CIRCULAR, NEW GUIDELI NES 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 MINIMUM OF RS . 10 LAKHS. IN THE SAID CIRCULAR, IT HAS BEEN SPECIFICALLY CLARIFIED THAT THE SAID INSTR UCTION WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS. THE LD. DR FAIRLY CONCEDED THE POSIT ION AND COULD NOT POINT OUT ANY EXCEPTIONS AS GIVEN IN THE CIRCULAR. ACCORDINGLY, T HE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND THEREFORE, DISMISSED IN LIMINE . 4. IN NUTSHELL, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH APRIL, 2017. ITA NO.3622/M/2015 NOVA COSMETICS PRIVATE LIMITED ASSESSMENT YEAR 2010-11 3 SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 2404.2017 SR.PS:- THIRUMALESH / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. %&'$ / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. %. , . , / DR, ITAT, MUMBAI 6. /0 / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI