ACIT 18(1), MUMBAI V. MARUDHAR FASHIONS, MUMBAI

ITA 4718/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93365 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-07-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 16-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Tax effect
• Section: 80HHC

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO.4718/MUM/2012 ASSESSMENT YEAR:2009-10 ACIT-18(1), 1 ST FLOOR, PIRAMAL CHAMBERS, LALBAUG, MUMBAI-400012 / VS. M/S MARUDHAR FASHIONS, 8,CAMA INDUSTRIAL ESTATE, SUN MILL COMPOUND, LOWER PAREL (W), MUMBAI-400013 ( / REVENUE) ( !'# $ /ASSESSEE) P.A. NO. AAAFM3463F / REVENUE BY SHRI VINOD KUMAR-DR !'# $ / ASSESSEE BY SHRI VIMAL PUNMIYA % & ' $ ( / DATE OF HEARING 30/07/2015 ' $ ( / DATE OF ORDER: 30/07/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 09/04/2012, OF THE LD. FIRST APPELLATE AUTHORITY, M UMBAI, ACCEPTING THE DECISION OF THE TRIBUNAL ON NET OFF O F INTEREST FOR ITA NO.4718/MUM/2012 , M/S MARUDHAR FASHIONS 2 THE PURPOSES OF WORKING OF 80HHC DEDUCTION AND FURT HER TO TREAT THE INTEREST RECEIVED AS BUSINESS INCOME AND NOT INCOME FROM OTHER SOURCES AND CONSEQUENT DIRECTION TO THE ASSESSING OFFICER TO RE-COMPUTE THE DEDUCTION U/S 80HHC AFTER REDUCING THE INDIRECT COST BY 10% OF THE EXPORT INCENTIVES I NCLUDED IN THE BUSINESS INCOME. 2. DURING HEARING OF THE APPEAL, THE LD. COUNSEL FO R THE ASSESSEE, SHRI VIMAL PUNMIYA, RAISED A PRIMARY OBJE CTION THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AS TA X EFFECT INVOLVED IS BELOW PRESCRIBED MONETARY LIMIT. THE A SSESSEE ALSO FILED THE CALCULATION OF TAX EFFECT TO THE TUNE OF RS.2,28,343/-. THE LD. DR, SHRI VINOD KUMAR, DID NOT CONTRADICT TH E ASSERTION OF THE LD. COUNSEL FOR THE ASSESSEE WITH THE HELP OF THE ANY POSITIVE MATERIAL OR CONTRARY FACTS AS CLAI MED BY THE ASSESSEE. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN VIEW OF THE FACT THAT THE TAX EFFECT IN THE APPEAL IS BELOW PRESCRI BED MONETARY LIMIT AS CONTAINED IN CBDT INSTRUCTION NO.3/2011 DA TED 09/02/2011, FURTHER INSTRUCTION NO.5/2014 (F NO.279/MISC./142/2007-IT(PT) DATED 10/07/2014. THE CBDT REVISED THE MONETARY LIMIT FOR FILING THE APPEAL BE FORE VARIOUS AUTHORITIES/COURTS AND ADVISED/DIRECTED THE DEPARTM ENT NOT TO FILE APPEAL IN THE CASES WHERE THE TAX EFFECT DO ES NOT EXCEED THE FOLLOWING MONETARY LIMITS, THE APPEALS OF THE R EVENUE IS NOT MAINTAINABLE. THE REVISED MONETARY LIMIT IS AS UNDER:- ITA NO.4718/MUM/2012 , M/S MARUDHAR FASHIONS 3 SL. NO. APPEALS IN INCOME TAX MATTERS MONETARY LIMIT (IN RS.) 1. BEFORE APPELL ATE TRIBUNAL 4,00,000/ - 2. U/S 260 A BEFORE HIGH COURT 10,00,000/ - 3. BEFORE SUPREME COURT 25,00,000/ - AS PER THE AFORESAID INSTRUCTION, THE DEPARTMENT IS NOT TO FILE APPEAL BEFORE THE TRIBUNAL, WHEREIN THE TAX EF FECT IS LESS THAN RS.4,00,000/-, CONSEQUENTLY, CONSIDERING THE D ECISION FROM THE HONBLE JURISDICTIONAL HIGH COURT IN THE C ASE OF PITHWA ENGINEERING WORKS (276 ITR 519) (BOM ) , THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. THEREFORE, IN VIE W OF THE ABOVE, THE APPEAL OF THE REVENUE IS DISMISSED AS NO T MAINTAINABLE. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVE OF BOTH SIDES, AT TH E CONCLUSION OF HEARING ON 30/07/2015 . SD/- SD/- ( SANJAY ARORA ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER % & MUMBAI; ) DATED : 30/07/2015 F{X~{T? P.S/. . . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. +,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 % 1$ ( + ) / THE CIT, MUMBAI. 4. 0 0 % 1$ / CIT(A)- , MUMBAI 5. 34 .$ ! , 0 +( ! 5 , % & / DR, ITAT, MUMBAI ITA NO.4718/MUM/2012 , M/S MARUDHAR FASHIONS 4 6. ' 7& / GUARD FILE. / BY ORDER, /3+$ .$ //TRUE COPY// / (DY./ASSTT. REGISTRAR) , % & / ITAT, MUMBAI