DCIT 8(2), MUMBAI V. MELSTAR INFORMATION TECHNOLOGEIS LTD, MUMBAI

ITA 4422/MUM/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0766 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2017
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 26-03-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 03-06-2013
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B , MUMBAI BEFORE SHRI CN PRASAD , JUDICIAL MEMBER AND SHRI RA MIT KOCHAR , ACCOUNTANT MEMBER ITA NO. 4422 /MUM/201 3 : (A.Y : 200 4 - 05 ) D C IT 8 (2) ROOM NO. 21 6 - A AAYAKAR BHAVAN M.K.ROAD MUMBAI 400 020 ( / APPELLANT ) VS. MELSTAR INFORMATION TECHNOLOGIES LTD. MELSTAR HOUSE, G - 4, MIDC, CROSS ROAD A ANDHERI (EAST) MUMBAI 400 0 9 3 PAN : AA BCM6270G ( / RESPONDENT ) / APPELLANT BY : SHRI JEEVANLAL LAVIDIYA / RE SPONDENT BY : SHRI SANJAY C.SHAH / DATE OF HEARING : 8.5. 2017 / DATE OF PRONOUNCEMENT : 8. 5 . 2017 / O R D E R PER CN PRASAD , J M : THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 20 . 0 3 .201 3 , PASSED BY THE LD. CIT (APPEALS) - 1 7, MUMBAI, FOR THE ASSESSMENT YEAR 20 0 4 - 0 5 . 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS REVENUES APPEAL IS LESS THAN RS. 10 LAKHS AND THEREFORE IN VIEW OF CBD T CIRCULAR NO. 21/2015 DATED 10.12. 2015 , THE APPEAL IS NOT MAINTAI NAB LE. THE LD. DR FAIRLY SUBMITS THAT THE TAX EFFECT IS LESS THAN RS.10 LAKHS. 2 ITA NO.4422 - MUM - 2013 M/S MELSTAR INFORMATION TECHNOLOGIES LTD. 3. IN THIS CASE THE TOTAL ADDITION MADE IN THE ASSESSMENT ORDER IS RS.21,82,550/ - ON ACCOUNT OF UNPROVED PURCHASES. WE FOUND THAT AS PER THE RECENT CIRCULAR NO.21/2015,DATED 10 .12. 2015, ISSUED BY THE CBDT, THE MONETARY LIMIT HAS BEEN REVISED FOR FILING OF APPEAL BEFORE ITAT BY THE REVENUE FIXING THE TAX EFFECT LIMIT OF RS.10 LAKHS. IN THE INSTANT CASE, THE TAX EFFECT IS BELOW RS.10 LAKHS, THEREFORE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AND LIABLE TO BE DISMISSED IN LIMINE. THIS CIRCULAR IS RETROSPECTIVE AND APPLICABLE TO THE PENDING APPEALS ALSO. 3. CONSIDERING THE ABOVE CBDT CIRCULAR, WE FOUND THAT THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE AS THE TAX EFFECT IN TH IS APPEAL IS BELOW RS.10 LAKHS. ACCORDINGLY, WE DISMISS THE APPEAL OF THE REVENUE. 4. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 8 TH DAY OF MAY 201 7 . SD/ - SD/ - ( RA MIT KOCHAR) ( C.N.PRASAD ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / MUMBAI; / DATED 08.05. 2017 LR, SPS 3 ITA NO.4422 - MUM - 2013 M/S MELSTAR INFORMATION TECHNOLOGIES LTD. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, (ASSTT. REGISTRAR) , / ITAT, MUM 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. // TRUE COPY / /