DCIT CEN CIR 36, MUMBAI V. CAPRIHANS INDIA LTD, MUMBAI

ITA 4574/MUM/2011

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6052 (ITAT-MUMBAI)
• Duration Of Justice: 8 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 03-06-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 06-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AWUNGSHI GIMSON
• Assessee Lawyers: R MURLIDHAR
• Keywords: Tax effect

Judgement Text

P A G E | 1 ITA NO.4574 & 4575/MUM/2011 AYS. 2006 - 07 AND 2007 - 08 THE ASSTT. COMMISSIONER OF INCOME TAX,CC - 36 VS. M/S CAPRIHANS INDIA LTD. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C MUMBAI BEFORE SHRI PRAMOD KUMAR ( VICE PRESIDENT ) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NOS. 4574 & 4575/MUM/2011 (ASSESSMENT YEARS: 2006 - 07 & 2007 - 08) THE ASSTT. COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE - 36, ROOM NO. 11, AAYAKAR BHAVAN, M.K. MARG, MUMBAI 400 020 VS. M/S CAPRIHANS INDIA LTD. BLOCK D, SHIVSAGAR ESTATE DR. ANNIE BESANT ROAD WORLI, MUMBAI 400 018 PAN NO. AAACC1646F APPELLANT RESPONDENT REVENUE BY : MR. AWUNGSHI GIMSON, CIT , D.R ASSESSEE BY : MR. R. MURLIDHAR , A.R DATE OF HEARING : 01/10 /2019 D ATE OF PRONOUNCEMENT : 0 1 /10 /2019 ORDER PER RAVISH SOOD, JM THE CAPTIONED APPEAL S FIL ED BY THE REVENUE ARE DIRECTED AGAINST THE ORDER PASSED BY THE COMMISS IONER OF INCOME TAX (APPEALS) - 41 , MUMBAI [IN SHORT CIT(A)], WHICH IN TURNS ARISES FROM THE RESPECTIVE ASSESSMENT ORDER S PASSED UNDER SECTION 143(3)/153C OF THE INCOME TAX ACT 1961, (THE ACT). 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 HAS AMEND ED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 3. CBDT VIDE CIRCULAR NO. 3/ 2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . FOR THIS PURPOSE , TAX EFFECT MEANS THE DIFFERENCE BETW EEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. P A G E | 2 ITA NO.4574 & 4575/MUM/2011 AYS. 2006 - 07 AND 2007 - 08 THE ASSTT. COMMISSIONER OF INCOME TAX,CC - 36 VS. M/S CAPRIHANS INDIA LTD. FURTHER, TAX EFFECT SHALL BE TAXES INCLUDIN G APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER TO BE APPEALED AGA INST. AT PARA 13 OF THE ABOVE CIRCULAR, IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SLPS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PAR A 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019 HAS FIXED THE MONETARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FILED BY THE DEPARTME NT, THE TAX EFFECT INVOLVED IS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . THE SAME WAS BROUGHT TO THE NOTICE OF THE LD. DEPARTMENTAL REPRESENTATIVE (DR). 6. BEFORE US, THE LD. DR SUBMITS THAT LIBERTY MAY KINDLY BE GIVEN TO RAISE, AFTER NECESSARY FURTHER VERIFICATION, AND TO SEEK RECALL THE DISMISSAL OF APPEAL AND RESTORATION OF THE APPEAL IN CASE IT CAN BE SHOWN THAT THE APPEAL IS COVERED BY THE EXCEPTIONS. 7. WE AGREE WITH THE ABOVE CONTENTIONS OF THE LD. DR AND MAKE IT CLEAR THAT THE APPELLANT SHALL BE AT LIBERTY TO POINT OUT THE EXCEPTIONS AND WE WILL TAKE APPROPRIATE REMEDIAL MEASURES IN THIS REGARD. 8. W ITH THE AB OVE OBSERVATIONS, BOTH THE AFORESAID APPEAL S INVOLVING TAX EFFEC T OF LESS THAN RS.50,00,000/ - ARE DISMISSED . ORDER PRON OUNCED IN THE OPEN C OURT ON 0 1 /10 /2019. S D / - S D / - ( PRAMOD KUMAR ) (RAVISH SOOD) VICE PRESIDENT JUDICIAL MEMBER MUMBAI ; DATED: 0 1 /10 /2019 *** ROHIT, P.S. P A G E | 3 ITA NO.4574 & 4575/MUM/2011 AYS. 2006 - 07 AND 2007 - 08 THE ASSTT. COMMISSIONER OF INCOME TAX,CC - 36 VS. M/S CAPRIHANS INDIA LTD. 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// (SR. PRIVATE SECRETARY) ITAT, MUMBAI