DEPUTY COMMISSIONER OF INCOME TAX-11(1)(1), MUMBAI V. M/S.REYNOLDS CHEMEQUIP PRIVATE LIMITED, MUMBAI

ITA 3881/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5368 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 01-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P MEENASR
• Keywords: Tax effect
• Section: 201; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI BEFORE SHRI M. BALAGANESH , AM & SHRI AMARJIT SINGH , JM ITA NO S . 3881, 3882, 3883 & 3884 / MUM/ 201 8 (ASSESSMENT YEAR S: 2010 - 11, 2011 - 12, 2012 - 13 & 2013 - 14 ) DCIT - 11(1)(1) ROOM NO.204, AAYAKAR BHAVAN, M. K. MARG, MUMBAI - 400020 . VS. M/S. REYNOLDS CHEMEQUIP PVT. LTD. 1 ST FLOOR, MULTANI MANSION, 82 - F, NAIGAUM CROSS ROAD, DADAR (E), MUMBAI - 400014. PAN/GIR NO. AACCR3096G APPELLANT ) .. RESPONDENT ) REVENUE BY SHRI O. P . MEENA ( SR. A R) ASSESSEE BY MS. AARTI SATHE DATE OF HEARING 06 / 10 / 20 20 DATE OF PRONOUNCEMENT 06 / 10 / 2020 O R D E R PER BENCH : THESE APPEAL S FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - 18, MUMBAI DATED 21 /0 3 /201 8 AND IT PERTAINS TO AY S. 2010 - 11, 2011 - 12, 2012 - 13 & 2013 - 14 . 2 . WE HAVE HEARD THE ARGUMENTS ADVANCED BY THE LD. REPRESENTATIVE OF THE PARTIES AND PERUSED MATERIALS AVAILABLE ON RECORD. DURING COURSE OF HEARING, LD. DR FOR THE REVENUE SUBMITTED THAT TAX EFFECT INVOLVED IN THIS APPEAL FILED B Y THE REVENUE IS LESS THAN RS. 5 0 LACS AND IN VIEW OF LATEST CBDT CIRCULAR NO. 3/2018 DATED 11 - 7 - 2018, AND ALSO MODIFIED CIRCULAR NO. 17/2019 DATED 08/08/2019, APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND N EEDS TO BE DISMISSED. THE LD. DR, FURTHER ARGUED THAT, THE ISSUE INVOLVED IN THIS APPEAL IS APPEARS TO BE COVERED BY EXCEPTION PROVIDED UNDER CLAUSE (E) OF SUBSEQUENT CIRCULAR AND THEREFORE, IF REQUIRED THE REVENUE SHALL BE ALLOWED TO FILE MISCELLANEOUS AP PLICATION TO RE - CALL THE ORDER. WE, FIND THAT, THE CBDT, RECENTLY HAD ISSUED A CIRCULAR NO. 3/2018 DATED 11 - 7 - 2018, SUPERSEDING ITS EARLIER CIRCULAR NO. 21/2015 AND ENHANCED MONETARY LIMIT FOR FILING APPEAL BEFORE VARIOUS APPELLATE AUTHORITIES AND ACCORD INGLY, ENHANCED MONETARY LIMIT TO RS. 20,00,000/ - FOR FILING APPEAL ITA NOS.3881, 3882, 3883 & 3884 /M/201 8 A.YS. 2010 - 11, 2011 - 12, 2012 - 13 & 2013 - 14 2 BEFORE THE TRIBUNAL. FURTHER, THE BOARD HAS ISSUED ONE MORE CIRCULAR VIDE CIRCULAR NO.17/2019 DATED 08/08/2019 AND ENHANCED MONETARY LIMIT FOR FILING APPEAL BEFORE APPELLATE TRIBUNAL TO RS. 50,00,000/ - . FURTHER, IN THE SAID CIRCULAR, THE CBDT HAD INSTRUCTED ITS OFFICERS TO FILE APPLICATION FOR WITHDRAWAL OF APPEAL ALREADY FILED OR NOT TO PURSUE PENDING APPEALS. WE, THEREFORE, BY TAKING INTO ACCOUNT THE CBDT CIRCULAR NO. 3/2018 DATED 11 - 7 - 20 18 AND C IRCULAR NO.17/2019 DATED 08/08/2019 AND ALSO CONSIDERING THE FACT THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE AMOUNT OF MONETARY LIMIT FIXED BY THE CBDT FOR NOT FILING APPEAL, DISMISSED APPEAL FILED BY THE REVENUE AS NOT MAINTAI NABLE. WE, FURTHER NOTED THAT THE CO - ORDINATE BENCH OF ITAT, AHMEDABAD A BENCH IN ITA. NO. 1398/AHD/2004, VIDE ORDER DATED 14/08/2019 HAS PASSED DETAILED ORDER CONSIDERING NEW CIRCULAR ISSUED BY THE CBDT AND HELD THAT EXCEPT AMENDMENT TO PARA 3 OF THE CI RCULAR NO.3/2018 DATED 11/07/2018, ALL OTHER PORTIONS OF THE CIRCULAR NO .03/2018 (SUPRA) HAVE REMAIN IN F ACT, THEREFORE, THIS CIRCULAR IS APPLICABLE EVEN FOR PENDING APPEALS AND ACCORDINGLY, REJECTED THE ARGUMENTS OF THE REVENUE THAT THE EFFECT OF THE CIRC ULAR SHALL COME INTO FORCE FROM THE DATE OF ISSUE OF THIS CIRCULAR. THEREFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THIS CASE AND ALSO TAKEN NOTE OF CIRCULARS ISSUED BY THE CBDT INCLUDING CIRCULAR NO. 17/2019 DATED 08/08/2019, AND ALSO BY FOLLOWING T HE DECISION OF CO - ORDINATE BENCH, WE DISMISSED APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. HOWEVER, WE KEEP OPEN OPTION TO THE REVENUE TO FILE A MISCELLANEOUS APPLICATION, IF NECESSARY, IN CASE THE ISSUES INVOLVED IN THE PRESENT APPEAL COMES WITHIN 3 EXCEPTIONS AS PROVIDED IN PARA 10 OF SAID CIRCULAR AND CLAUSE (E) OF SUBSEQUENT CIRCULAR. 3 . IN THE RESULT, THESE APPEAL S FILED BY THE REVENUE STANDS DISMISSED . ORDER PRONOU NCED IN THE OPEN COURT ON 06 /10/2020 SD/ - SD/ - ( M. BALAGANESH ) (AMARJIT SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; DATED : 06 / 10/2020 VIJAY PAL SINGH/SR. PS ITA NOS.3881, 3882, 3883 & 3884 /M/201 8 A.YS. 2010 - 11, 2011 - 12, 2012 - 13 & 2013 - 14 3 / 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// / /(DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI