Deputy Commissioner of Income-tax, V. Sandvik System Development AB., Pune

ITA 435/PUN/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9274 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 10-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KUMAR
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI , AM ITA NO. 435 /P U N/201 5 ASSESSMENT YEAR : 20 0 6 - 0 7 THE DY. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) - II, PUNE . APPELLANT VS. SANDVIK SYSTEM DEVELOPMENT AB, C/O SANDVIK ASIA PVT. LTD., 459 - 469, MUMBAI PUNE ROAD, DAPODI, PUNE 411012 . RESPONDENT PAN: AAHCS7485H . /CO NO.0 2 /PUN/201 7 / ASSESSMENT YEAR : 20 06 - 07 (OUT OF ITA NO.435/PUN/2015 ) SANDVIK SYSTEM DEVELOPMENT AB, C/O SANDVIK ASIA PVT. LTD., 459 - 469, MUMBAI PUNE ROAD, DAPODI, PUNE 411012 / CROSS OBJECT OR P AN: AAHCS7485H VS. THE DY. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) - II, PUNE . / RESPONDENT ASSESSEE BY : SHRI DHANESH BAFNA REVENUE BY : SHRI NARENDRA KUMAR / DATE OF HEARING : 11.07. 201 7 / DATE OF PRONOUNCEMENT: 11.07. 201 7 2 ITA NO. 435 /P U N/201 5 CO NO.02/PUN/2017 / ORDER PER SUSHMA CHOWLA, JM: THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF DDIT (IT) - II, PUNE, DATED 2 6.02.2015 RELATING TO ASSESSMENT YEAR 20 0 6 - 07 PASSED UNDER SECTION 144C(13) OF THE INCO ME - TAX ACT , 1961 (IN SHORT THE ACT) . THE ASSESSEE ALSO FILED CROSS OBJECTIONS AGAINST THE APPEAL OF REVENUE. 2 . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOU NT OF LOW TAX EFFECT AND, HENCE , BE DISMISSED. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE FAIRLY ADMITTED THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE LIMIT PRESCRIBED BY THE CBDT CIRCULAR OF 10 . 12 . 2015 BEARING NO. 21 OF 2015 AND THEREFORE THE APPEAL BE DECIDED ACCORDINGLY. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. ADMITTEDLY, THE TAX EFFECT INVOLVED IN PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT PRESCRIBED BY CBDT FOR FILING OF APPEAL BEFOR E TRIBUNAL. THE CBDT VIDE CIRCULAR NO. 21/2015, DATED 10.12.2015 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL TO RS. 10 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE, AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. THUS, IN VIEW OF THE CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 3 ITA NO. 435 /P U N/201 5 CO NO.02/PUN/2017 5. THE CROSS OBJECTIONS FILED BY THE ASS ESSEE ARE AGAINST THE APPEAL OF REVENUE . SINCE THE APPEAL OF REVENUE IS DISMISSED, THE CROSS OBJECTIONS BECOME INFRUCTUOUS. 6 . IN THE RESULT, BOTH T HE APPEAL OF THE REVENUE AND CROSS OBJECTIONS OF ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COU RT ON THIS 11 TH DAY OF JULY , 201 7 . SD/ - SD/ - ( ANIL CHATURVEDI ) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 11 TH JU LY , 201 7 . GCVSR / COPY OF THE O RDER IS FORWARDED TO : 1. THE APPELLANT ; 2. THE RESPONDENT; 3. THE DRP, PUNE ; 4. THE DIT (TP/IT), PUNE ; 5. THE DR B , ITAT, PUNE; 6. GUARD FILE . / BY ORDER , //TRUE COPY// / SR. PRIVATE SECRETARY , / ITAT, PUNE