DCIT 9(1)(1), MUMBAI V. AIR WORKS INDIA (ENGINEERING ) P.LTD, MUMBAI

ITA 4783/MUM/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3382 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 06-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing; Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , K BENCH MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHR I PAWAN SINGH, JUDICIAL MEMBER ITA NO. 4783/MUM/2017 FOR ASSESSMENT YEAR: 2011-12 DCIT- 9(1)(1), ROOM NO. 260A, 2 ND FLOOR, AAYAKAR BHAWAN, M.K. ROAD, MUMBAI-400020. VS M/S AIR WORKS INDIA (ENGINEERING) PVT. LTD. GATE NO.8, OLD AIRPORT, NEAR KALINA MILITARY CAMP, SANTACRUZ (E), MUMBAI-400029. PAN : AABCA1069P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJESH KUMAR MISHRA (SR. DR/ADDL. CIT) RESPONDENT BY : NONE DATE OF HEARING : 11/11/2019 DATE OF PRONOUNCEMENT: 11/11/2019 ORDER UNDER SECTION 254(1) O F INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS APPEAL BY REVENUE UNDER SECTION 253 OF INCOME TAX ACT IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-55, [CIT(A)], MUMBAI DATED 31.03.2017, WHICH IN TURN AR ISES FROM THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) RWS 14 4C(3)(A) DATED 27.04.2015 FOR ASSESSMENT YEAR 2011-12. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE, DESPITE SE RVICE OF NOTICE THROUGH RPAD. AT THE OUTSET OF HEARING, WE HAVE NOTED THAT THE LD CIT(A) DELETED THE ONLY THE ADDITION OF RS. 61,66,088/- ADDED ON ACCOU NT OF UPWARD ADJUSTMENT ON ACCOUNT OF ARMS LENGTH PRICE FOR CORPORATE GUARA NTEE FEE CHARGEABLE FROM ASSOCIATED ENTERPRISES OF THE ASSESSEE. ADMITTEDLY THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS BELOW RS. 50,00,000/- I.E. TH E MONETARY LIMIT PRESCRIBED ITA NO. 4783 MUM 17-M/S AIR WORKS INDIA (ENGINEERI NG) PVT. LTD. 2 BY CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST 2019. THEREFORE, EITHER THE REVENUE SHOULD WITHDRAW THE PRESENT APPEAL OR WOUL D BE DISMISSED. 3. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) FOR THE RE VENUE AFTER GOING THROUGH THE GROUNDS OF APPEAL SUBMITTED THAT THOUGH THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIM IT OF TAX EFFECT FIXED BY CBDT IN A RECENT CIRCULAR, HOWEVER, THE REVENUE MAY BE GIVEN LIBERTY TO GET THE APPEAL REVIVED IN CASE AT THE LATER STAGE IT IS DISCOVERED THAT THE GROUND OF APPEAL IS COVERED BY ANY EXCEPTION CLAUSE OF CBDT C IRCULAR NO. 3/2018 DATED 1 1TH JULY 2018 OR THE TAX EFFECT ID MORE THAN RS. 50 LAK HS. 4. C ONSIDERING THE FACTS AND THE SUBMISSIONS OF THE LD. DR FOR THE REVENUE WE FIND THAT TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT OF RS. 50,00,000/- FIXED BY CBDT CIRCULAR NO. 17/2019 DATED 8 TH AUGUST 2019, THEREFORE, THE APPEAL OF REVENUE IS DI SMISSED BEING NOT MAINTAINABLE. HOWEVER, THE REVENUE IS GIVEN LIBERTY TO GET THE APPEAL REVIVED IN CASE, IF IT IS DISCOVERED THAT THE PRESENT APPEA L IS COVERED BY ANY EXCEPTION CLAUSE OF CBDT CIRCULAR NO.3/2018 DATED 11 TH JULY 2018. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT O N THIS 11/11/2019. SD/- SD/- (SHAMIM YAHYA) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMB ER MUMBAI, DATE: 11.11.2019 SK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ITA NO. 4783 MUM 17-M/S AIR WORKS INDIA (ENGINEERI NG) PVT. LTD. 3 4. CIT(APPEALS) 5. DR: ITAT BY ORDER ASSISTANT REGISTRAR IT AT MUMBAI