ITO 5(1)(1), MUMBAI V. ALLCARGO SHIPPING CO PRIVATE LIMITED, MUMBAI

ITA 4489/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6042 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 13-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S MICHAEL JERALD
• Assessee Lawyers: B V JHAVERI
• Keywords: Tax effect
• Section: 143(3); 115JB; 201; 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA NO. 4489 /MUM/201 8 : A.Y : 201 2 - 1 3 INCOME TAX OFFICER - 5(1)(1), MUMBAI. (APPELLANT) VS. ALLCARGO SHIPPING CO. PVT. LTD., 5 TH FLOOR, BHARAT DIAMOND SQUARE, CST ROAD, KALINA, SANTA CRUZ (E), MUMBAI 400 098 . PAN : AAHCA0796K (RESPONDENT) APPELLANT BY : SHRI S. MICHAEL JERALD RESPONDENT BY : SHRI B.V. JHAVERI DATE OF HEARING : 0 3 / 1 0/2019 DATE OF PRONOUNCEMENT : 03 /10/2019 O R D E R PER MAHAVIR SINGH , JUDICIAL MEMBER THIS APPEAL OF REVENUE IS ARISING OUT OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)] - 10 , MUMBAI, [IN SHORT CIT(A)], IN ITA NO. CIT(A) - 10 /IT - 5(1)(1) / 145/2015 - 16 DATED 23.04 .201 8 . THE ASSESSMENT WAS FRAMED BY THE INCOME TAX OFFICER - 5( 1 )( 1 ), MUMBAI (IN SHORT ITO/ AO) FOR THE A.Y. 201 2 - 1 3 VIDE ORDER DATED 30 .03.201 5 UNDER SECTION 143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER THE ACT). 2. AT THE OUTSET, IT IS NOTICED THAT THE AO MADE VARIOUS ADDITION S/DISALLOWANCES ASSESSING THE ASSESSEES INCOME AT 21,81,640 / - U/S 2 ITA NO. 4489/MUM/2018 ALLCARGO SHIPPING CO. PVT. LTD. 115JB OF THE ACT WHILE COMPUTING THE BOOK PROFIT . AGGRIEVED, ASSESSEE PREFERRED THE APPEAL BEFORE CIT(A), WHO DEL ETED THE SAME AS UNJUSTIFIABLE. NOW, AGGRIEVED REVENUE IS IN APPEAL BEFORE TRIBUNAL. THE LEARNED COUNSEL FOR THE ASSESSEE STATED THAT THE TAX EFFECT IN THIS APPEAL IS 46,50,959/ - WHICH IS BELOW THE LOW TAX EFFECT AS PRESCRIBED VIDE CBDT CIRCULAR NO. 17/2019 VIDE F.NO . 279/MISC.142/2007 - ITJ(PT.) DATED 08.08.2019, WHEREIN THE MONETARY LIMIT FOR FILING OF APPEAL BEFORE ITAT IS ENHANCED TO 50 LACS. WE NOTED THAT VIDE THIS CIRCULAR NO. 17/2019 DATED 08.08.2019 A N AMENDMENT WAS MADE TO CBDT CIRCULAR NO. 3/2018 DATED 11.07 .2018 VIDE F.NO. 279/MISC. 142/2007 - ITJ (PT) INCREASING THE MONETARY LIMIT FOR FILING OF APPEAL BEFORE INCOME TAX APPELLATE TRIBUNAL I.E. 50 LACS IN EACH OF THE CASE FROM THE MONETARY LIMIT OF 20 LACS. WE NOTED THAT EARLIER CIRCULAR NO. 3 OF 2018 WAS M ADE APPLICABLE TO PENDING APPEALS ALSO AND THIS CLAUSE OF THE CIRCULAR REMAINS UNCHANGED EVEN AFTER THE AMENDMENT. ADMITTEDLY, IN THIS CASE TAX EFFECT IS BELOW PRESCRIBED LIMIT FOR FILING OF APPEAL BEFORE THE TRIBUNAL BY THE REVENUE I.E. 50 LACS. 3. WHE N THIS WAS CONFRONTED TO THE LEARNED SR. DEPARTMENTAL REPRESENTATIVE, HE COULD NOT POINT OUT THAT THIS APPEAL FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN CIRCULAR NO. 3 OF 2018, WHICH ARE APPLICABLE TO THE PRESENT CIRCULAR NO. 17/2019. NOW, BEFORE US, THE LEARNED CIT DEPARTMENTAL REPRESENTATIVE ONLY REQUESTED THAT HE WANT TO VERIFY WHETHER THIS APPEAL FALLS UNDER ANY OF THE EXCEPTION AS PROVIDED IN CBDT CIRCULAR NO. 3/2018. HERE, WE ARE GIVING LIBERTY TO REVENUE, THAT IN CASE, AFTER PASSING THE ORDER, I T COMES TO THE NOTICE OF THE REVENUE THAT THIS APPEAL DOES FALL UNDER ANY EXCEPTION OF THE CBDT CIRCULAR NO. 3/18, THE AO CAN MOVE FOR RECALLING OF THE ORDER WITHIN THE PRESCRIBED TIME LIMIT UNDER SECTION 254(2) OF THE ACT. ADMITTEDLY, THE TAX EFFECT IN TH IS APPEAL OF REVENUE IS MUCH BELOW THE PRESCRIBED LIMIT OF FILING APPEAL 3 ITA NO. 4489/MUM/2018 ALLCARGO SHIPPING CO. PVT. LTD. BEFORE THE TRIBUNAL I.E. 50 LACS AS PER CBDT CIRCULAR NO. 17 OF 2019. IN VIEW OF THE ABOVE, THIS APPEAL OF REVENUE IS DISMISSED AS WITHDRAWN IN VIEW OF CIRCULAR NO. 17 OF 2019. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03.10 .2019. SD/ - SD/ - (M. BALAGANESH) ACCOUNTANT MEMBER (MAHAVIR SINGH) JUDICIAL MEMBER MUMBAI, DATE : 3 RD OCTOBER, 2019 *SSL* COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, A BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI