DCIT 7(3), MUMBAI V. VAST TEXTILES .LTD, MUMBAI

ITA 4971/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3961 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2008-2009
• Appeal Filed On: 31-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: VIKRAM BATRA
• Keywords: Tax effect
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F MUMBAI BEFORE SHRI JASON P. BOAZ (AM) AND SHRI SANDEEP GOS AIN (JM) ITA NO. 4971 /MUM/2014 ASSESSMENT YEAR: 2008-09 THE DY. CIT 7(3) . ROOM NO. 615, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI- 400020. VS. M/S. VAST TEXTILES LTD. 12A & 12B, 1 ST FLOOR, BHARTI BHAVAN , 2121/219, P.D.MELLO ROAD, NEAR GPO, MUMBAI- 400001. PAN : AABCV6360Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. VIKRAM BATRA RESPONDENT BY : NONE DATE OF HEARING: 15/02/2016 DATE OF PRONOUNCEMENT: 15/02/2016 O R D E R PER JASON P. BOAZ, AM THE AFORESAID APPEAL HAS BEEN FILED BY THE REV ENUE AGAINST THE IMPUGNED ORDER DATED 20/05/2014 PASSED BY THE CIT( A)-22, MUMBAI IN RESPECT OF THE ORDER OF ASSESSMENT PASSED U/S 14 3(3) FOR THE ASSESSMENT YEAR 2008-09, ON THE FOLLOWING GROUNDS:- (I) THE LEARNED CIT(A) HAS ERRED ON THE FACTS AND I N LAW IN RESTRICTING DISALLOWANCES AND DELETING ADDITIONS MA DE BY ASSESSING OFFICER WITHOUT PROPERLY APPRECIATING THE FACTUAL AND LEGAL MATRIX OF THE CASE AS CLEARLY BROUGHT OUT BY THE ASSESSING OFFICER. 2 ITA NO. 4971/MUM/2014 ASSESSMENT YEAR: 2008-09 (II) THE LEARNED CIT(A) HAS ERRED ON THE FACTS AND IN LAW IN RESTRICTING DISALLOWANCES MADE BY ASSESSING OFFICER ON ACCOUNT OF TRAVELLING EXPENSES FROM RS. 10,00,000/- TO RS. 3,00,000/-. (III) THE LEARNED CIT(A) HAS ERRED ON THE FACTS AND IN LAW IN DELETING ADDITION MADE BY ASSESSING OFFICER ON ACC OUNT OF SALARY AND ALLOWANCE PAID TO MANAGING DIRECTOR AMOU NTING TO RS. 3,84,000/-. (IV) THE LEARNED CIT(A) HAS ERRED ON THE FACTS AND IN LAW IN RESTRICTING DISALLOWANCES MADE BY ASSESSING OFFICER ON ACCOUNT OF VEHICLE EXPENSES FROM RS. 98,347/- TO RS. 50,00 0 AND GARDENING EXPENSES FROM RS. 2,53,589/- TO RS. 1,00, 000/-. 2) THE LD. CIT(A)S ORDER IS CONTRARY IN LAW AND ON FACTS AND DESERVES TO BE SET ASIDE. 3) THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND THAT MAY BE NECESSARY. 4) THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFI CER RESTORED. 2. AT THE OUTSET, IT IS NOTICED THAT, THE DISPUTE D ISSUES ARE ONLY FOR APPROX RS.17.35 LAKHS AND THE TAX EFFECT ON THI S AMOUNT IS MUCH BELOW THE SPECIFIED MONETARY LIMIT OF RS. 10 L AKHS. AS PER THE LATEST CBDT CIRCULAR NO. 21 OF 2015, DATED 10 TH DECEMBER, 2015, NEW GUIDELINES OF MONETARY LIMIT FOR FILING O F APPEALS BY THE DEPARTMENT HAS BEEN ISSUED, WHEREBY THE TAX EFFECT FOR FILING OF APPEAL BEFORE THE ITAT HAS BEEN PRESCRIBED AT RS. 1 0 LAKHS. IN THE 3 ITA NO. 4971/MUM/2014 ASSESSMENT YEAR: 2008-09 SAID CIRCULAR, IT HAS BEEN SPECIFICALLY CLARIFIED T HAT THE SAID INSTRUCTION WILL APPLY RETROSPECTIVELY TO ALL THE P ENDING APPEALS. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND IS DISMISSED IN LIMINE . ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH FEBRUARY, 2016 SD/- SD/- ( SANDEEP GOSAIN ) (JASON P.BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 15/02/2016 / 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// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI PRAMILA