DCIT 14(2)(1), MUMBAI V. HINDUSTAN DIAMOND PVT. LTD, MUMBAI

ITA 4069/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5573 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2014-2015
• Appeal Filed On: 07-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR SINGHDR
• Keywords: Tax effect

Judgement Text

1 ITA 4069/MUM/2018 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H, MUMBAI BEFORE SHRI AMARJIT SINGH (JUDICIAL MEMBER) AND SHRI G MANJUNATHA (ACCOUNTANT MEMBER) I.T.A NO. 4069/MUM/2018 (ASSESSMENT YEAR: 2014-15) DCIT-14(2)(1) 432, 4 TH FLOOR M.K.ROAD, AAYKAR BHAWAN MUMBAI-400 020 VS M/S HINDUSTAN DIAMOND CO.PVT.LTD. DE - 6010, BHARAT DIAMOND BOURSE, BANDRA KURLA COMPLEX, BANDRA (E) MUMBAI-400 051 PAN: AA A C H0400Q APP ELLANT RESPONDENT APPELLANT BY SHRI MANOJ KUMAR SINGH-(DR) RESPONDENT BY NONE DATE OF HEARING 20 -08-2019 DATE OF PRONOUNCEMENT 20 -08-2019 O R D E R PER G MANJUNATHA, AM : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST ORDER OF THE CIT(A)- 22, MUMBAI DATED 14/03/2018 AND IT PERTAINS TO AY 2014-15. 2. NONE APPEARED FOR THE ASSESSEE. WE HAVE HEARD TH E LD. DR AND PERUSED MATERIALS AVAILABLE ON RECORD. DURING COURS E OF HEARING, LD. DR FOR THE REVENUE SUBMITTED THAT TAX EFFECT INVOLVED IN THIS APPEAL FILED BY 2 ITA 4069/MUM/2018 THE REVENUE IS LESS THAN RS. 20 LACS AND IN VIEW OF LATEST CBDT CIRCULAR NO. 3/2018 DATED 11-7-2018, AND ALSO MODIFIED CIRCU LAR NO. 17/2019 DATED 08/08/2019, APPEAL FILED BY THE REVENUE IS NO T MAINTAINABLE AND NEEDS TO BE DISMISSED. THE LD. DR, FURTHER ARGUED T HAT, THE ISSUE INVOLVED IN THIS APPEAL IS APPEARS TO BE COVERED BY EXCEPTION PROVIDED UNDER CLAUSE (E) OF SUBSEQUENT CIRCULAR AND THEREFO RE, IF REQUIRED THE REVENUE SHALL BE ALLOWED TO FILE MISCELLANEOUS APPL ICATION TO RELCALL THE ORDER. WE, FIND THAT, THE CBDT, RECENTLY HAD ISSU ED A CIRCULAR NO. 3/2018 DATED 11-7-2018, SUPERSEDING ITS EARLIER CIR CULAR NO. 21/2015 AND ENHANCED MONETARY LIMIT FOR FILING APPEAL BEFORE VA RIOUS APPELLATE AUTHORITIES AND ACCORDINGLY, ENHANCED MONETARY LIMI T TO RS. 20,00,000/- FOR FILING APPEAL BEFORE THE TRIBUNAL. FURTHER, THE BOARD HAS ISSUED ONE MORE CIRCULAR VIDE CIRUCLAR NO.17/2019 DATED 08/08/ 2019 AND ENHANCED MONETARY LIMIT FOR FILING APPEAL BEFORE APPELLATE T RIBUNAL TO RS. 50,00,000/-. FURTHER, IN THE SAID CIRCULAR, THE CBD T HAD INSTRUCTED ITS OFFICERS TO FILE APPLICATION FOR WITHDRAWAL OF APP EAL ALREADY FILED OR NOT TO PURSUE PENDING APPEALS. WE, THEREFORE, BY TAKING IN TO ACCOUNT THE CBDT CIRCULAR NO. 3/2018 DATED 11-7-2018 AND CIRCULAR N O.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 3 ITA 4069/MUM/2018 MAINTAINABLE. WE, FURTHER NOTED THAT THE CO-ORDINAT E BENCH OF ITAT, AHMEDABAD A BENCH IN ITA.NO. 1398/AHD/2004, VIDE ORDER DATED 14/08/2019 HAS PASSED DETAILED ORDER CONSIDERING NE W CIRCULAR ISSUED BY THE CBDT AND HELD THAT EXCEPT AMENDMENT TO PARA 3 OF THE CIRCULAR NO.3/2018 DATED 11/07/2018, ALL OTHER PORTIONS OF T HE CIRCULAR NO.03/2018 (SUPRA) HAVE REMAIN INTACT, THEREFORE, T HIS CIRCULAR IS APPLICABLE EVEN FOR PENDING APPEALS AND ACCORDINGLY , REJECTED THE ARGUMENTS OF THE REVENUE THAT THE EFFECT OF THE CIR CULAR SHALL COME INTO FORCE FROM THE DATE OF ISSUE OF THIS CIRCULAR. THER EFORE, CONSIDERING THE FACTS AND CIRCUMSTANCES OF THIS CASE AND ALSO TAKEN NOTE OF CIRCULARS ISSUED BY THE CBDT INCLUDING CIRCULAR NO. 17/2019 D ATED 08/08/2019, AND ALSO BY FOLLOWING THE DECISION OF CO-ORDINATE B ENCH, WE DISMISSED APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. HO WEVER, WE KEEP OPEN OPTION TO THE REVENUE TO FILE A MISCELLANEOUS APPLICATION, IF NECESSARY, IN CASE THE ISSUES INVOLVED IN THE PRESE NT APPEAL COMES WITHIN 3 EXCEPTIONS AS PROVIDED IN PARA 10 OF SAID CIRCULAR AND CLAUSE (E) OF SUBSEQUENT CIRCULAR. 3. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH AUGUST, 2019 4 ITA 4069/MUM/2018 SD/- SD/- (AMARJIT SINGH) (G MANJUNATHA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DT : 20-08-2019 THIRUMALESH, SR.PS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR /TRUE COPY/ BY ORDER SR.PS, ITAT, MUMBAI