ACIT 11(3)(2), MUMBAI V. ZINSER TEXTILES SYSTEMS P.LTD, MUMBAI

ITA 4054/MUM/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8004 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2007-2008
• Appeal Filed On: 02-06-2017
• Court: TRIBUNAL

Judgement Text

1 IT(TP)A NO.4054/MUM/2017 M/S ZINSER TEXTILE SYSTEMS PVT. LTD. ASSESSMENT YEAR-2007-08 IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.(TP)A. NO.4054/MUM/2017 ( / ASSESSMENT YEAR: 2007-08) ASSTT . COMMISSIONER OF INCOME TAX CIRCLE-11-(3)(2) ROOM NO.427, 4 TH FLOOR AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020. / VS. ZINSER TEXTILE S SYSTEMS PVT. LTD. 43, DR. V.B. GANDHI MARG FORT, MUMBAI-400 021. ./ ./PAN/GIR NO. AAACZ-1594-R ( /APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : PRAVEEN KUMAR J. DARAK - LD. AR / RESPONDENT BY : S. SENTHIL KUMARAN - LD. DR / DATE OF HEARING : 07/01/2019 / DATE OF PRONOUNCEMENT : 08/01/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER):- 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 2007-08 CONTEST THE ORDER OF FIRST APPELLATE AUTHORITY DATE D 28/02/2017 QUA DELETION OF CERTAIN ADDITION ON ACCOUNT OF PROVISION FOR WARRANTY EXPENSES FOR RS.47.57 LACS AS MADE BY LD. AO IN ASSESSMENT ORDER DATED 20/10/2014 PASSED U/S 143(3) READ WITH SECTION 254. 2 IT(TP)A NO.4054/MUM/2017 M/S ZINSER TEXTILE SYSTEMS PVT. LTD. ASSESSMENT YEAR-2007-08 2. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE [ AR], AT THE OUTSET, SUBMITTED THAT THE REVENUES APPEAL IS NOT MAINTAIN ABLE 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]. OUR ATTENTION IS DRAWN TO THE FACT THAT THE QUANTUM OF IMPUGNED ADDITION IS RS.47.57 L ACS, THE TAX EFFECT ON WHICH COMES TO LESS THAN RS.20 LACS. AFTER PERUSAL OF THE SAME, PRIMA FACIE, IT APPEARS THAT THE TAX EFFECT OF THE QUANTUM ADDIT IONS AS CONTESTED BY THE REVENUE IS LESS THAN PRESCRIBED LIMIT OF RS.20 LACS AND THE SAME IS COVERED BY RECENTLY ISSUED LOW TAX EFFECT CIRCULAR NO.03/2018 DATED 11/07/2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THE LD. DR, SHRI S. SENTHIL KUMARAN, HAS CONTROVERTED THE SAME BY SUBMITTING THAT NECESSARY INSTRUCTIONS / CERTIFICATE, IN THIS REGAR D, WOULD BE REQUIRED FROM HIGHER AUTHORITIES. 3. 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 IT(TP)A NO.4054/MUM/2017 M/S ZINSER TEXTILE SYSTEMS PVT. LTD. ASSESSMENT YEAR-2007-08 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. 4. SO FAR AS THE CONTENTIONS RAISED BY LD. DR IS CO NCERNED, WE FIND THAT AFORESAID CIRCULAR DOES NOT ENVISAGE OBTAINING OF A NY CERTIFICATE FROM ANY AUTHORITIES, IN ANY MANNER. NEVERTHELESS, THE REVEN UE IS FREE TO MOVE APPROPRIATE 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 OR IN CASE THE TAX EFFECT OF THE QUANTUM ADDITIONS AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. 5. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH JANUARY, 2019. SD/- SD/- /- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 08/01/2019 SR.PS:-JAISY VARGHESE !' #' / COPY OF THE ORDER FORWARDED TO : 1. !' / THE APPELLANT 2. #$!' / THE RESPONDENT 4 IT(TP)A NO.4054/MUM/2017 M/S ZINSER TEXTILE SYSTEMS PVT. LTD. ASSESSMENT YEAR-2007-08 3. % ( ) / THE CIT(A) 4. % / CIT CONCERNED 5. &'#() , ) , / DR, ITAT, MUMBAI 6. '+,- / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.