DCIT-8(1)(1), MUMBAI V. RONUK METAFIN PVT. LTD., MUMBAI

ITA 4109/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5499 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 05-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM TIWARI LD
• Assessee Lawyers: BHUPENDRA SHAH LD
• Keywords: Tax effect
• Section: 143(3); 147; 263

Judgement Text

ITA NOS.4109 -4111/MUM/2017 RONUK METAFIN PRIVATE LIMITED IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NOS.4109 TO 4111/MUM/2017 ( / ASSESSMENT YEARS: 2008-09, 2010-11& 2012-13) DEPUTY COMMISSIONER OF INCOMETAX-8(1)(1) ROOM NO.624, 6TH FLOOR AAYKAR BHAVAN, M.K.ROAD MUMBAI-400 020 / VS. RONUK METAFIN PRIVATE LIMITED 11-A, ABDUL GAFFAR KHAN ROAD WORLI SEA FACE MUMBAI-400 030 ! ./ ./PAN/GIR NO. AABCR-9148-Q A SSESSEE BY : BHUPENDRA SHAH , LD.AR RE VENUE BY : RAM TIWARI, LD. DR / DATE OF HEARING : 17/07/2018 / DATE OF PRONOUNCEMENT : 20/07/2018 / O R D E R PER BENCH 1. AFORESAID APPEALS BY REVENUE FOR DIFFERENT ASSESSME NT YEARS [AY] CONTEST SEPARATE ORDERS OF LD. FIRST APPELLATE AUTH ORITY. SINCE COMMON ISSUES ARE INVOLVED, WE DISPOSE-OFF THE SAME BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE & BREVITY. FIRST, WE TAKE UP APPEAL FOR AY 2010-11 ITA NO. 4110/MUM/2017 SINCE THE ISSUE IN HAND IS SQUARELY COVERED BY THE DECISION OF THIS TRIBUNAL. THE ASSES SEE, IN THIS YEAR, WAS ASSESSED AT RS.225.07 LACS U/S 143(3) ON 22/10/2012 . ITA NOS.4109 -4111/MUM/2017 RONUK METAFIN PRIVATE LIMITED 2 2.1 BRIEFLY STATED, THAT THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE ENGAGED IN THE BUSINESS OF MANUFACTURING OF ELECTRO PLATING WAS SUBJECTED TO EXERCISE OF REVISIONAL JURISDICTION U/ S 263 BY LD. COMMISSIONER OF INCOME TAX [CIT] ON 05/12/2014 TO E XAMINE THE CLAIM OF THE ASSESSEE U/S 80IB(5)(I). THE INCOME OF THE A SSESSEE, IN THE CONSEQUENTIAL PROCEEDINGS U/S 143(3) READ WITH SECTION 263 HAS BEEN ENHANCED TO RS.270.26 LACS. THE ASSESSEE CONTESTED THE SAME BEFORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 10/03/2017. 2.2 THE ASSESSEE, IN THE MEANTIME, CHALLENGED THE E XERCISE OF JURISDICTION U/S 263 BEFORE THIS TRIBUNAL WITH SUCC ESS VIDE ITA NO.7549/MUM/2014 DATED 20/04/2016 WHEREIN THE EXERC ISE OF JURISDICTION U/S 263 BY LD. CIT WAS SET ASIDE BY TH E TRIBUNAL. 2.3 IN TERMS OF THE ABOVE STATED DECISION OF THE TR IBUNAL, LD. CIT(A) DELETED THE ADDITIONS SINCE THE SAME DID NOT SURVIV E. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. THE LD. DR, SHRI RAM TIWARI, FAIRLY CONCEDED THE ABOVE STATED FACTS. 2.4 IN VIEW OF THE ADMITTED POSITION, THE APPEAL ST AND DISMISSED BEING INFRUCTUOUS. ITA NO. 4109 & 4111 /MUM/2017, AY 2008-09 & 2012-20 13 3. IN AY 2008-09, THE ASSESSEE WAS SUBJECTED TO REA SSESSMENT PROCEEDINGS AND RE-ASSESSED U/S 143(3) READ WITH SECTION 147 VIDE ORDER DATED 07/03/2016 WHEREIN THE INCOME OF THE AS SESSEE HAS BEEN ENHANCED BY RS.13.13 LACS ON ACCOUNT OF EXCESS DEDUCTION CLAIMED U/S 80IB(5)(I). THE INCOME IN AY 2012-13 HAS SIMILARLY BEEN ENHANCE D BY RS.38.93 LACS. THE ENHANCED ADDITIONS IN BOTH THE Y EARS, UPON FURTHER ITA NOS.4109 -4111/MUM/2017 RONUK METAFIN PRIVATE LIMITED 3 APPEALS, HAVE BEEN DELETED BY LD. CIT(A) VIDE SEPAR ATE ORDERS BY PLACING RELIANCE ON THE SAME DECISION OF THE TRIBUN AL FOR AY 2010-11, ITA NO.7549/MUM/2014 DATED 20/04/2016. AGGRIEVED, T HE REVENUE IS IN FURTHER APPEAL BEFORE US. 4. THE LD. AUHTORIZED REPRESENTATIVE FOR ASSESSEE [ AR], SHRI BHUPENDRA SHAH , AT THE OUTSET, DREW OUR ATTENTION TO THE EFFECT T HAT THE TAX EFFECT IN EACH OF THE IMPUGNED AY WAS BELOW RS. 20 LACS AND THE SAME WAS COVERED IN ASSESSEES FAVOR BY RECENT LOW TAX EFFECT CBDT CIRCULAR NO.03/2018 DATED 11/07/2018, A COPY OF WHI CH HAS BEEN PLACED ON RECORD. THE LD. DR CONTROVERTED THE SAME BY SUBM ITTING THAT NECESSARY INSTRUCTIONS / CERTIFICATE, IN THIS REGAR D, WOULD BE REQUIRED FROM HIGHER AUTHORITIES. 5. WE HAVE GONE THROUGH THE SAME AND FIND THAT THE TAX EFFECT IN EACH OF THE IMPUGNED AYS 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 A PPEALS BEFORE 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 THE AFORESAID LIMITS, AS PER PARA 13 OF THE CIRCULAR APPLIES TO PENDING APPEALS ALSO. IN VIEW OF THE ADMITTED POSITION, WE DISMISS BOTH THE APPEALS. ITA NOS.4109 -4111/MUM/2017 RONUK METAFIN PRIVATE LIMITED 4 6. SO FAR AS THE CONTENTIONS RAISED BY LD. DR IS CO NCERNED, WE FIND THAT AFORESAID CIRCULAR DOES NOT ENVISAGE OBTAINING OF ANY CERTIFICATE FROM ANY AUTHORITIES, IN ANY MANNER. NEVERTHELESS, THE R EVENUE IS FREE TO MOVE APPROPRIATE APPLICATION TO RECALL THIS LETTER, IF AT A LATER STAGE, IT IS FOUND THAT THE MATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN THE AFORESAID CIRCULAR. CONCLUSION 7. ALL THE APPEALS FILED BY THE REVENUE STAND DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JULY, 2018 SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 20.07.2018 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. , ./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI