DCIT 7(2), MUMBAI V. SONIC BIOCHEM EXTRACTIONS LTD, MUMBAI

ITA 3868/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1148 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 27-12-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 29-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK LD
• Assessee Lawyers: HITESH CHIMNANI LD
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

ITA NO.3868/M/2014 SONIC BIOCHEM EXTRACTIONS 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.3868/MUM/2014 ( / ASSESSMENT YEAR: 2010-11) DEPUTY COMMISSIONER OF INCOME 7(2) ROOM NO. 624 M.K.ROAD MUMBAI 400 020 / VS. SONIC BIOCHEM EXTRACTIONS LTD. 7/A VIMAL UDYOG BHAWAN 3 RD FLOOR, OPP. STAR CINEMA SHIVAJI PARK MATUNGA (W) MUMBAI- 400 016 !' ./ ./PAN/GIR NO. AABCS-5326-B ( '$ /APPELLANT ) : ( %&'$ / RESPONDENT ) ASSESSEE BY : SHRI HITESH CHIMNANI, LD AR REVENUE BY : DR. A.K.NAYAK, LD. DR / DATE OF HEARING : 27/04/2017 / DATE OF PRONOUNCEMENT : 27 /04/2017 ITA NO.3868/M/2014 SONIC BIOCHEM EXTRACTIONS 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)-13 , [CIT(A)], MUMBAI DATED 18/03/2014 QUA CERTAIN RELIEF PROVIDED TO THE ASSESSEE AGAINST VAR IOUS DISALLOWANCES MADE BY THE ASSESSING OFFICER [AO]. 2. BRIEFLY STATED, THE ASSESSEE, BEING RESIDENT COR PORATE ASSESSEE, WAS SUBJECTED TO AN ASSESSMENT U/S 143(3) VIDE ASSESSING OFFICER [AO] O RDER DATED 03/01/2013 WHEREIN THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED AT RS.4 ,44,43,520/- AFTER CERTAIN ADJUSTMENTS/DISALLOWANCES AS AGAINST RETURNED INCOM E OF RS.4,05,78,550/- FILED BY THE ASSESSEE ON 20/09/2010. THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF MANUFACTURING OF SOYA FLOUR, CHUNKS AND LECITHIN ETC. THE ASSESSEE SUFFERED, INTER-ALIA, DISALLOWANCE U/S 40(A)(IA) FOR RS.14,62,312/-, DISALLOWANCE AGAINST SHORTAGE-IN-TRANSIT FOR RS.7 LACS & DISALLOWANCE OF RS.5,63,244/- ON ACCOUNT OF RECONCI LIATION OF TDS CREDIT. ALL THESE ADDITIONS WERE CONTESTED WITH PARTIAL SUCCESS BEFOR E LD. CIT(A) VIDE ORDER DATED 18/03/2014 WHEREIN THE LD. CIT(A) AFTER CONSIDERING THE VARIOUS CONTENTIONS DELETED 40(A)(IA) DISALLOWANCE, TDS RECONCILIATION DISALLOWA NCE OF RS.5,63,244/- AND RESTRICTED THE ADHOC DISALLOWANCE AGAINST SHORTAGE- IN-TRANSIT EXPENSES TO RS. 2.50 LACS. AGGRIEVED BY THE RELIEF PROVIDED BY LD. CIT(A), THE REVENUE IS IN APPEAL 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 ITA NO.3868/M/2014 SONIC BIOCHEM EXTRACTIONS LIMITED ASSESSMENT YEAR: 2010-11 3 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 27 TH APRIL, 2017. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 27.04.2017 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. ./ / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI