DCIT CEN CIR 2(3), MUMBAI V. GOLDEN WINGS P.LTD, MUMBAI

ITA 3772/MUM/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8422 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2011-2012
• Appeal Filed On: 24-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH K DAS LD
• Keywords: Transfer pricing; Tax effect
• Section: 143(3)

Judgement Text

1 ITA NO.3772/MUM/2017 M/S. GOLDEN WINGS PRIVATE LIMITED ASSESSMENT YEAR-2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL K BENCH, MUMBAI , , BEFORE HONBLE SHRI SAKTIJIT DEY, JM AND SHRI HONBLE MANOJ KUMAR AGGARWAL, AM ./ IT(TP) NO.3772/MUM/2017 ( / ASSESSMENT YEAR:2011-12) D CIT - CENTRAL CIRCLE 2(3) ROOM NO.804-A, 8 TH FLOOR OLD CGO BUILDING, AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020 / VS. M/S. GOLDEN WINGS PVT. LTD. MALKANI CHAMBERS GROUND FLOOR, OPP. NEHRU ROAD VILE PARLE (E) MUMBAI-400 099. ./ ./PAN/GIR NO. AACCG-7210-K ( /APPELLANT ) : ( / RESPONDENT ) REVEN UE BY : SHRI RIGNESH K DAS LD. DR ASSESSEE BY : NONE DATE OF HEARING : 17/07/2019 DATE OF PRONOUNCEMENT : 17/07/2019 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 2011-12 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-56, MUMBAI [CIT(A)], APPEAL NO. CIT(A)-56/DCITC.C.2(3)/2016-17/151-G D ATED 22/02/2017 ON CERTAIN GROUNDS OF APPEAL. NONE IS PRESENT FOR ASSESSEE AND NO VALID ADJOURNMENT APPLICATION IS ON RECORD. THEREFORE, WE 2 ITA NO.3772/MUM/2017 M/S. GOLDEN WINGS PRIVATE LIMITED ASSESSMENT YEAR-2011-12 PROCEED TO DISPOSE-OFF THE APPEAL EX-PARTE QUA THE ASSESSEE IN VIEW OF THE FACT THAT THE MATTER, PRIMA-FACIE, APPEARS TO BE COVERED BY RECENT LOW TAX EFFECT CIRCULAR ISSUED BY CBDT. 2. UPON PERUSAL OF ASSESSMENT ORDER DATED 29/05/201 5 FRAMED BY LD. ASSESSING OFFICER U/S 143(3) R.W.S. 144C OF THE ACT , IT TRANSPIRES THAT THE ASSESSEE WAS SADDLED WITH CERTAIN TRANSFER PRICING ADJUSTMENT OF RS.36.43 LACS. THE LD. FIRST APPELLATE AUTHORITY HAS DELETED THE SAME, AGAINST WHICH THE REVENUE IS IN FURTHER APPEAL BEFORE US. 3. WE FIND THAT THE TAX EFFECT OF THE QUANTUM ADDIT ION BEING CONTESTED BY THE REVENUE IS BELOW THRESHOLD LIMIT OF RS.20 LACS AND THE APPEAL IS NOT MAINTAINABLE IN VIEW OF THE RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THE LD. DR COULD NOT POINT OUT ANY EXCEPTION AS GIV EN IN THE CBDT CIRCULAR. 4. WE HAVE GONE THROUGH THE CIRCULAR AND FIND THAT THE TAX EFFECT OF QUANTUM IN DISPUTE IS BELOW PRESCRIBED LIMIT OF RS. 20 LACS AND THE ASSESSEE STOOD BENEFITTED BY THE ABOVE CIRCULAR ISS UED BY CBDT WHEREIN THE MINIMUM MONETARY LIMIT FOR FILING THE APPEALS B EFORE VARIOUS APPELLATE AUTHORITIES HAVE BEEN FIXED AS UNDER: - S. NO. APPEALS/ SLPS IN INCOME-TAX MATTERS MONETARY LIMIT (RS.) 1 BEFORE APPELLATE TRIBUNAL 20,00,000 2 BEFORE HIGH COURT 50,00,000 3 BEFORE SUPREME COURT 1,00,00,000 3 ITA NO.3772/MUM/2017 M/S. GOLDEN WINGS PRIVATE LIMITED ASSESSMENT YEAR-2011-12 THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR APPLIES TO PENDING APPEALS ALSO. IN VIEW OF THE ADMITTED POSITION, WE DISMISS THE REVENUES APPEAL. 5. NEVERTHELESS, THE REVENUE IS FREE TO MOVE APPROP RIATE APPLICATION TO RECALL THIS ORDER, IF AT A LATER STAGE, IT IS FOUND THAT THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN THE AFORESAID CIRCULAR O R IN CASE THE TAX EFFECT OF THE QUANTUM ADDITIONS AS AGITATED BY REVENUE EXCEED S THE PRESCRIBED MONETARY LIMIT. 6. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH JULY, 2019. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 17/07/2019 SR.PS:-JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. ! '# / THE APPELLANT 2. $%'# / THE RESPONDENT 3. && ( ! ) / THE CIT(A) 4. & & / CIT CONCERNED 5. ' ($) , &!) , / DR, ITAT, MUMBAI 6. ( +,- / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.