DCIT 12(2)(1), MUMBAI V. EBAY INDIA P.LTD, MUMBAI

ITA 3714/MUM/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1446 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 27-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: KIRTI TALREJ A ARS
• Keywords: Tax effect
• Section: 271(1)(c); 274; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL K, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI VIKAS AWASTHY, JM ITA NO. 3714/MUM/2016 ( ASSESSMENT YEAR: 2010-11) DCIT-12(2)(1), ROOM NO. 223, 2 ND FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-20. VS. M/S MINTKART INDIA PVT. LTD. (FORMERLY KNOWN AS EBAY INDIA PVT. LTD.), 14 TH FLOOR, NORTH BROCK, R-TECH PARK, WESTERN EXPRESS HIGHWAY, GOREGAON EAST, MUMBAI-400063. PAN/GIR NO.AABCB 2307 H (APPELLANT ) .. (RESPONDENT ) C.O. NO. 259/MUM/2017 (ARISING OUT OF ITA NO. 3714/MUM/2016) ( ASSESSMENT YEAR: 2010-11) M/S MINTKART INDIA PVT. LTD. (FORMERLY KNOWN AS EBAY INDIA PVT. LTD.), 14 TH FLOOR, NORTH BROCK, R-TECH PARK, WESTERN EXPRESS HIGHWAY, GOREGAON EAST, MUMBAI-400063. VS. DCIT-12(2)(1), ROOM NO. 223, 2 ND FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-20. PAN/GIR NO. AABCB 2307 H (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI ANAND MOHAN (CIT-DR) & MS. NILU JAGGI (DR) ASSESSEE BY SHRI NITESH JOSHI & MS. KIRTI TALREJ A (ARS) DATE OF HEARING 09/12/2019 DATE OF PRONOUNCEMENT 13/12/2019 / O R D E R PER: R.C. SHARMA, A.M. THE APPEAL FILED BY THE REVENUE AND CROSS OBJECTIO N FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-56, MUMBAI ITA NO. 3714/MUM/2016 & CO 259/MUM/2017 DCIT VS M/S MINTKART INDIA P LTD. 2 DATED 25/02/2016 FOR THE A.Y. 2010-11 IN THE MATTER OF IMPOSITION OF PENALTY U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 ( IN SHORT, THE ACT). 2. AT THE OUTSET, THE LD AR APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE PENALTY SO DELETED BY THE LD. CI T(A) IN RESPECT OF TP ADJUSTMENT SO MADE IN THE QUANTUM APPEAL DOES NOT E XCEED RS. 50.00 LACS, THEREFORE, IN VIEW OF CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019, THE APPEAL FILED BY THE REVENUE DESERVE S TO BE DISMISSED. 3. THE LD DR HAS FAIRLY AGREED THAT THE TAX EFFECT IN THE APPEAL FILED BY THE REVENUE IS LESS THAN RS. 50.00 LACS. 4. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAR EFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOU ND THAT THE TAX EFFECT IN THIS APPEAL IS NOT EXCEEDING THE MONETARY LIMIT AS REVISED BY THE CBDT VIDE CIRCULAR DATED 08.08.2019 FOR THE PURPOSE OF F ILING OF APPEAL BY THE DEPARTMENT BEFORE THE INCOME TAX APPELLATE TRIBUNAL FROM RS. 20,00,000/- TO RS. 50,00,000/-. FOR READY REFERENC E, WE REPRODUCE THE CBDT CIRCULAR NO. 17 OF 2019 DATED 08.08.2019 AS UN DER:- FURTHER ENHANCEMENT OF MONETARY LIMITS FOR FILING O F APPEALS BY THE DEPARTMENT BEFORE INCOME TAX APPELLATE TRIBUNAL , HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT - AMEN DMENT TO CIRCULAR 3 OF 2018 - MEASURES FOR REDUCING LITIGATI ON. CIRCULAR NO. 3/2018 DATED 11TH JULY 2018 HAS BEEN R EPLACED BY CIRCULAR NO. 17/2019 DATED 8TH AUGUST 2019 TO ENHAN CE MONETARY LIMITS FOR FILING OF APPEALS BY THE DEPARTMENT BEFO RE INCOME TAX APPELLATE TRIBUNAL, HIGH COURTS AND SLPS/APPEALS BE FORE SUPREME COURT FOR REDUCING LITIGATION. ITA NO. 3714/MUM/2016 & CO 259/MUM/2017 DCIT VS M/S MINTKART INDIA P LTD. 3 APPEALS/SLPS IN INCOME- TAX MATTERS MONETARY LIMIT (RS.) (PREVIOUS LIMIT) MONETARY LIMIT (RS.) (REVISED LIMIT) BEFORE APPELLATE TRIBUNAL 20,00,000 50,00,000 BEFORE HIGH COURT 50,00,000 1,00,00,000 BEFORE SUPREME COURT 1,00,00,000 2,00,00,000 THE ASSESSING OFFICER SHALL CALCULATE THE TAX EFFEC T SEPARATELY FOR EVERY ASSESSMENT YEAR IN RESPECT OF THE DISPUTED IS SUES IN THE CASE OF EVERY ASSESSEE. IF, IN THE CASE OF AN ASSES SEE, THE DISPUTED ISSUES ARISE IN MORE THAN ONE ASSESSMENT Y EAR, APPEAL CAN BE FILED IN RESPECT OF SUCH ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IN RESPECT OF THE DISPUTED ISSUES EX CEEDS THE MONETARY LIMIT. NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT. FURTHER, EVEN IN THE CASE OF COMPOSITE ORDER OF ANY HIGH COURT OR APPELLATE AUTHORITY WHICH INVOLVES MORE THAN ONE AS SESSMENT YEAR AND COMMON ISSUES IN MORE THAN ONE ASSESSMENT YEAR, NO APPEAL SHALL BE FILED IN RESPECT OF AN ASSESSMENT YEAR OR YEARS IN WHICH THE TAX EFFECT IS LESS THAN THE MONETARY LIMIT. IN CASE WHERE A COMPOSITE ORDER/ JUDGMENT INVOLVES MORE THAN ONE ASSESSEE, EACH ASSESSEE SHALL BE DEALT WITH SEP ARATELY. 5. IT IS ALSO RELEVANT TO MENTION HERE THAT THIS AP PEAL IS NOT COVERED BY ANY OF THE EXCEPTIONS MENTIONED IN THE SAID CIRC ULAR SO AS TO NOT DISMISSING THE SAME ON THE GROUND OF LOW TAX EFFECT . ACCORDINGLY, THE APPEAL OF THE DEPARTMENT IS NOT MAINTAINABLE BEING MONETARY LIMIT IS LESS THAN/NOT EXCEEDING RS. 50,00,000/-. 6. WITH REGARD TO THE C.O. FILED BY THE ASSESSEE, I T WAS ALLEGED THAT THE PENALTY ORDER PASSED BY THE A.O. U/S 271(1)(C) OF THE ACT IS BAD IN LAW DUE TO NON-APPLICATION OF MIND WHICH IS EVIDENT FROM THE NOTICE U/S 274 R.W.S. 271(1)(C) OF THE ACT. ITA NO. 3714/MUM/2016 & CO 259/MUM/2017 DCIT VS M/S MINTKART INDIA P LTD. 4 7. WE HAVE GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW, HOWEVER, NOTHING WAS PLACED BEFORE THE BENCH SO AS TO PERSUADE US TO SUPPORT THE GROUND TAKEN IN CROSS OBJECTION. ACCORD INGLY, WE DO NOT FIND ANY MERIT IN THE C.O. SO FILED BY THE ASSESSEE. 8. IN THE RESULT, BOTH I.E. APPEAL OF THE REVENUE A ND C.O. OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH DECEMBER, 2019. SD/- (VIKAS AWASTHY) SD/- (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED 13/12/2019 *RANJAN COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//