DCIT-1(1)(2), Mumbai V. M/S FORBES & CO. LTD., Mumbai

ITA 3912/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1148 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Appeal Filed On: 31-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: CHINTAMANI DINGANKAR
• Keywords: Tax effect; Rule 8D
• Section: 14A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL , ACCOUNTANT MEMBER ITA NO. 3912 /MUM. /201 9 ( ASSESSMENT YEAR : 20 1 5 16 ) DY. COMMISSIONER OF INCOME TAX CIRCLE 1(1)(2), MUMBAI . APPELLANT V/S M/S. FORBES & CO. LTD. FORBES BUILDING, CHARANJIT RAI MARG FORT, MUMBAI 400 001 PAN AAACF1765A . RESPONDENT ASSESSEE BY : MS. URVI MEHTA REVENUE BY : S HRI CHINTAMANI DINGANKAR DATE OF HEARING 25 .11.2020 DATE OF ORDER 25.11.2020 O R D E R PER SAKTIJIT DEY. J.M. THE AFORESAID APPEAL HAS BEEN FILED BY THE REVENUE CHALLENGING THE ORDER DATED 29.03.2019 , PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 2 , MUMBAI, FOR THE ASSESSMENT YEAR 2015 16 . 2. THE DISPUTE IN THE PRESENT APPEAL IS CONFINED TO THE RELIEF GRANTED BY THE LEARNED COMMISSIONER (APPEALS) ON THE ISSUE OF DISALLOWANCE MADE UNDER SECTION 14A R/W RULE 8D BY THE ASSESSING OFFICER. 2 M/S. FORBES & CO. LTD. 3. AT THE OUTSET, THE LEANED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT ON THE AMOUNT DISPUTED BY THE REVENUE IN THE PRESENT APPEAL IS BELOW THE MONETARY LIMIT OF ` 50 LAKH. H ENCE, SHE SUBMITTED THAT THE APPEAL IS NOT MAINTAINA BLE IN VIEW OF THE CENTRAL BOARD OF DIRECT TAXES (CBDT) CIRCULAR NO. NO.17 OF 2019, DATED 8 TH AUGUST 2019. FURTHER, S HE SUBMITTED, THE APPEAL IS NOT PROTECTED BY ANY OF THE EXCEPTIONS PROVIDED . 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE AGREED THAT THE TAX EFFECT ON THE AMOUNT DISPUTED BY THE REVENUE IS BELOW THE MONETARY LIMIT OF ` .50 LAKH. 5. HAVING CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD, WE FIND FROM COL. NO.10 OF THE APPE AL MEMO FILED BY THE REVENUE IN FORM NO.36, THE TAX EFFECT ON THE AMOUNT DISPUTED BY THE REVENUE IN THE PRESENT APPEAL IS ` 29,24,376, WHICH IS BELOW THE REVISED MONETARY LIMIT OF ` 50 LAKH AS PER CBDT CIRCULAR NO.17/2019, DATED 8 TH AUGUST 2019. IT ALSO ST ANDS CLARIFIED BY THE CBDT THAT THE REVISED MONETARY LIMIT OF ` 50 LAKH AS PER THE AFORESAID CBDT CIRCULAR WOULD ALSO APPLY TO ALL PENDING APPEALS. THERE IS NOTHING ON RECORD TO SHOW THAT THE APPEAL IS PROTECTED BY ANY OF THE EXCEPTIONS PROVIDED IN THE CIR CULAR. IN VIEW OF THE AFORESAID, REVENUES APPEAL DESERVES TO BE DISMISSED AS WITHDRAWN . 3 M/S. FORBES & CO. LTD. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.11.2020 SD/ - MANOJ KUMAR AGGARWAL ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 25.11.2020 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY ASSISTANT REGISTRAR ITAT, MUMBAI