DEPUTY COMMISSIONER OF INCOME TAX-4(3)(1), MUMBAI V. QMAX SYNTHETICS PRIVATE LIMITED, MUMBAI

ITA 4379/MUM/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5233 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 10 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 13-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI SHRI SHAMIM YAHYA (AM) & SHRI VIKAS AWASTHY (JM) I.T.A. NO. 4379/MUM/2017 (ASSESSMENT YEAR 2009-10) ACIT-4(3)(1) ROOM NO. 649 6 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI-400 020. VS. M/S. QMAX SYNTHETICS PVT. LTD. 5-B/174, SANJAY BUILDING MITTAL INDUSTRIAL ESTATE ANDHERI KURLA ROAD ANDHERI, EAST MUMBAI-400 059. PAN : AAACQ0206D (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI ASHOK BANSAL DEPARTMENT BY MS. AMRITA SINGH DATE OF HEARING 12.04.2021 DATE OF PRONOUNCEMENT 03.05.2021 O R D E R PER SHAMIM YAHYA (AM) :- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST ORD ER OF LEARNED CIT(A) DATED 15.3.2017 AND PERTAINS TO ASSESSMENT YEAR 200 9-10. 2. THE GROUNDS OF APPEAL READ AS UNDER :- 1. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THE AO TO DELETE THE ADDITIO N MADE TOWARDS UNEXPLAINED UNSECURED LOAN OF RS.66,00,OOO/- U/S.68 OF THE I.T.ACT.' 2. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THE AO TO DELETE THE ADDITIO N MADE TOWARDS INTEREST CLAIMED TO BE PAID ON UNEXPLAINED UNSECURED LOAN OF RS.21,67,461/- U/S.69C OF THE I.T.ACT.' 3. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) HAS ERRED IN NOT APPRECIATING THE FACTS OF THE CASE THAT THE ASSESSEE HAS FAILED TO PROVE THE IDENTITY, GENUINENESS AND CRED ITWORTHINESS OF LENDER PARTIES, INVESTED AS SHARE APPLICATION MONEY IN THE AS SESSEE COMPANY.' 3. AT THE OUTSET IT IS NOTED THAT THAT THE TAX EFFE CT IN THIS CASE IS BELOW THE LIMIT OF RS. 50,00,000/- FIXED BY THE CBDT VIDE CIR CULAR NO. 17/2019 DATED M/S. QMAX SYNTHETICS PVT. LTD. 2 8.8.2019 FOR FILING APPEAL BEFORE THE ITAT. HENCE T HIS APPEAL BY THE REVENUE IS NOT MAINTAINABLE. 4. LD DR COULD NOT DISPUTE THAT THE TAX EFFECT IS B ELOW THE SAID LIMIT. SHE COULD NOT POINT OUT THAT THE APPEAL FALLS IN ANY OF THE EXCEPTIONS CARVED IN SAID CIRCULAR. 5. UPON CAREFUL CONSIDERATION WE FIND THAT AS THE T AX EFFECT IS BELOW THE LIMIT FIXED BY CBDT FOR FILING APPEALS BEFORE THE I TAT, THIS APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED IN LIMINE. THE RE VENUE WILL HAVE LIBERTY TO SEEK RESTORATION OF THE APPEAL IF THE TAX EFFECT B FOUND TO BE BEYOND THE ABOVE LIMIT. 6. ACCORDINGLY THE APPEAL STANDS DISMISSED AS SUCH. PRONOUNCED IN THE OPEN COURT ON 3.5.2021. SD/- SD/- (VIKAS AWASTHY) (SHAMIM YAH YA) JUDICIAL MEMBER ACCOUNTAN T MEMBER MUMBAI; DATED : 03/05/2021 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR) PS ITAT, MUMBAI