AC.CC. 45, MUMBAI V. MEHUL PARIKH, MUMBAI

ITA 519/MUM/2009

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0458 (ITAT-MUMBAI)
• Duration Of Justice: 8 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-03-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 23-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K AGARWAL
• Assessee Lawyers: MALTI PILLAI
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI P K BANSAL, VP & SHRI PAWAN SINGH, JM ITA NOS. 519 & 520/MUM/2009 ASSESSMENT YEARS : 2005-06 & 2006-07 ACIT CENT. CIRCLE 45 MUMBAI VS. SHRI MEHUL PARIKH, CONCORD, 12 TH FLOOR, BULLOCK ROAD, BANDSTAND, BANDRA (W) MUMBAI- 400 050 PAN ACPP6247L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V K AGARWAL RESPONDENT BY : SMT MALTI PILLAI DATE OF HEARING : 3 1 .0 5 .2017 DATE OF PRONOUNCEMENT : 31 .0 5 .2017 O R D E R PER P K BANSAL, VICE-PRESIDENT: THESE APPEALS HAVE BEEN FILED BY THE REVENUE AGAINS T TWO SEPARATE ORDERS OF CIT(A)-III MUMBAI, BOTH DATED 10.11.2008, RELATING TO ASSESSMENT YEARS 2005-06 AND 2006-07. 2. AT THE VERY OUTSET, WE NOTED THAT IN THESE APPEA LS THE TAX EFFECT ON THE INCOME UNDER DISPUTE IS LESS THAN RS.10 LAC. WE FUR THER NOTED THAT THE CENTRAL BOARD OF DIRECT TAXES VIDE CIRCULAR NO. 21/ 2015 DATED 10 TH DECEMBER, 2015 FILE NO.279 OF MISC. 142/2007 ITJ (PT) HAS I SSUED THE DIRECTION IN SUPERSESSION OF THE INSTRUCTION NO.5/2014 DATED 10/ 07/2014 IN PURSUANCE WITH THE POWER ENTRUSTED U/S. 268A OF THE INCOME TA X ACT, THAT NO APPEAL ITA NOS.519 & 520/MUM/2009 SHRI MEHUL PARIKH 2 SHOULD BE FILED BEFORE THIS TRIBUNAL IN CASE TAX EF FECT DOES NOT EXCEED RS.10 LAC. THE TAX EFFECT IN THIS REGARD MEANS THE DIFF ERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WHAT HAV E BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INC OME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. THIS CIRCULAR FURTHER STATES THAT TAX WILL NOT INCLUDE ANY INTEREST THEREON THE CHARG EABILITY OF INTEREST ITSELF IS IN DISPUTE. WE FURTHER NOTED THAT UNDER PARAGRAPH 10 W HICH IS REPRODUCED AS UNDER, IT HAS BEEN MENTIONED IN THE CIRCULAR THAT T HIS INSTRUCTION WILL APPLY EVEN TO THE PENDING APPEALS. 10. THIS INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEALS TO BE FILED HENCEFORTH IN HIGH COURTS/T RIBUNALS. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN P ARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. APPEALS BEFORE THE SUPREM E COURT WILL BE GOVERNED BY THE INSTRUCTIONS ON THIS SUBJECT, OP ERATIVE AT THE TIME WHEN SUCH APPEAL WAS FILED. 3. IN THE IMPUGNED CASES, WE NOTED THAT THE TAX EFF ECT ON THE ISSUE UNDER DISPUTE DOES NOT EXCEED RS.10 LAC. IN VIEW OF THIS FACT AS PER THE INSTRUCTION, THE REVENUE IS NOT SUPPOSED TO PRESS THESE APPEALS. WE, THEREFORE, DISMISS THE APPEALS FILED BY THE REVENUE IN LIMINE WITHOUT GOING INTO THE MERITS OF THE CASE AS IN OUR OPINION THE CIRCULARS ISSUED BY CBDT ARE BINDING ON THE DEPARTMENTAL OFFICERS IN VIEW OF THE PROVISIONS OF SECTION 268A(1) OF THE ACT. THE SAID VIEW HAS BEEN TAKEN BY HONBLE SUPREME COU RT IN THE CASE OF ITA NOS.519 & 520/MUM/2009 SHRI MEHUL PARIKH 3 NAVNEET LAL ZAVERI VS. AAC 56 ITR 198 (SC). WE ACCO RDINGLY DISMISS THE APPEALS FILED BY THE REVENUE. 4. IN THE RESULT, THE APPEALS OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST DAY OF MAY, 2017. SD/- SD/- (PAWAN SINGH) (P K BANSAL) JUDICIAL MEMBER VICE-PRESIDENT MUMBAI; DATED: 31 ST MAY, 2017 SA COPY OF THE ORDER FORWARDED TO : 1. THE APP ELL ANT. 2. THE RESPONDENT. 3. T HE CIT(A), MUMBAI 4. THE CIT 5. DR, B BENCH, ITAT, MUMBAI BY ORDER, #TRUE COPY # ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI