ITO 1(2)(2), MUMBAI V. KHETAN INDUSTRIES P.LTD, MUMBAI

ITA 5212/MUM/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9020 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-06-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 23-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV
• Keywords: Capital asset; Cost of acquisition; Tax effect
• Section: 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 5212/MUM/2013 (ASSESSMENT YEAR 2001-02) THE ITO 1(2)(2) ROOM NO.527,5 TH FLOOR, AAYKAR BHAVAN,M.K.ROAD, MUMBAI 400 020 ...... APPELLAN T VS. M/S. KHETAN INDUSTRIES PRIVATE LIMITED., 198, J.TATA ROAD,KHETAN BHAWAN, CHURCHGATE .... RESPOND ENT PAN: AAACK 5333K APPELLANT BY : SHRI RAJESH KUMAR YADAV RESPONDENT BY : SHRI KETAN VAJANI DATE OF HEARING : 09/10/2017 DATE OF PRONOUNCEMENT : 11/10/2017 ORDER PER G.S.PANNU,A.M: THE CAPTIONED APPEAL FILED BY THE REVENUE PERTAI NING TO ASSESSMENT YEAR 2001-02 IS DIRECTED AGAINST AN ORD ER PASSED BY CIT(A)- 7 MUMBAI DATED 08/03/2013, WHICH IN TURN ARISES OUT OF AN ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143( 3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 31/03/2004 . 2 ITA NO. 5212/MUM/2013 (ASSESSMENT YEAR 2001-02) 2. IN THIS APPEAL, REVENUE HAS RAISED THE FOLLOWIN G GROUNDS OF APPEAL:- 1. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN DELETING THE ADJUSTMENT MADE BY THE A.O. ON ACCOUNT OF SALE PROCEEDS OF CAPITAL ASSETS SOLD BY THE ASSESSEE WHI CH WAS NOT REFLECTED IN THE AUDITED P & L ACCOUNT OF THE ASSESSEE COMPANY'. 2.'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW THE LD. CIT(A) ERRED IN NOT APPRECIATING THE RATIO OF JUDGE MENT OF HON'BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS BRINDAVAN BEVERAGE S LTD- 321 ITR /186 TAXMAN 233 (KAR.) IN RESPECT OF INCOME COMPUTED U/S 115JB BY THE AO'. 3. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A) ERRED IN DIRECTING THE A.O. TO ADOPT COST OF ACQUISITION OF ASSET SOLD OF DHULIA SALT WORKS AS ON 1.4.1981 AT RS. 23,30,000/- AS AGAINST DETERMINED BY THE DVO OF RS. 15,01,808/- 3. AT THE OUTSET, IT WAS SUBMITTED BY LD. REPRESEN TATIVE FOR THE ASSESSEE THAT THE TAX EFFECT INVOLVED IN THE APPE AL OF THE REVENUE IS LESS THAN RS.10.00 LACS, AND THE SAME HAS BEEN ACCE PTED BY THE LD. DEPARTMENTAL REPRESENTATIVE. THE CBDT VIDE CIRCULAR NO.21/2015 DATED 10/12/2015 HAS REVISED THE MONETARY LIMITS FO R FILING OF APPEALS BY THE DEPARTMENT BEFORE THE TRIBUNAL RETROSPECTIVE LY. SINCE THE TAX EFFECT IN DISPUTE IN THE CAPTIONED APPEAL IS STATE D TO BE BELOW THE MONETARY LIMIT OF RS.10.00 LACS SPECIFIED IN THE CB DT CIRCULAR DATED 10/12/2015 (SUPRA), THE SAME IS DISMISSED AS NOT MA INTAINABLE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 11/10/2017. SD/- SD/- (SAKTIJIT DEY) (G.S. PANNU) JUDICIAL MEMBER ACCOCUNTANT MEMBER MUMBAI, DATED 11/10/2017 VM , SR. PS 3 ITA NO. 5212/MUM/2013 (ASSESSMENT YEAR 2001-02) 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