ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE-7(3)(2), MUMBAI V. M/S.PRINT ELECTRONICS EQUIPMENTS PVT. LTD, MUMBAI

ITA 5240/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0482 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 09-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Set aside
• Section: 80IB; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, JUDICIAL MEMBER ITA NO. 5240 /MUM/2019 : A.Y : 20 05 - 06 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE - 7(3)(2), MUMBAI. (APPELLANT) VS. M/S. PRINT ELECTRONICS EQUIPMENTS P RI V A T E L IMI T E D, A - 9, ROYAL INDUSTRIAL ESTATE, NAIGAUM CROSS ROAD, WADALA, MUMBAI 400 031. PAN : AAACP2982K (RESPONDENT) APPELLANT BY : MS. SHREEKALA PARDESHI RESPONDENT BY : NONE DATE OF HEARING : 15/0 2/ 202 1 DATE OF PRONOUNCEMENT : 01 / 0 3 /202 1 O R D E R PER SHRI SHAMIM YAHYA, AM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 13, MUMBAI (IN SHORT CIT(A) ) D A T E D 11.06.2019 AND PERTAINS TO ASSESSMENT YEAR 2005 - 06 . 2. THE GROUNDS OF APPEAL READ AS UNDER : 1. THE LEARNED CIT(A) HAS ERRED IN LAW AND FACTS IN QUASHING THE REOPENING PROCEEDINGS U/S 147 BY STATING THAT THERE WAS NO FAILURE ON THE PART OF THE ASSESSEE AND THEREF ORE THE ASSESSMENT CANNOT BE REOPENED BEYOND 4 YEARS. 2. THE LEARNED CIT(A) HAS ERRED IN LAW AND FACTS IN QUASHING THE REOPENING PROCEEDINGS WITHOUT APPRECIATING THE FACT THAT THE EXCESS DEDUCTION CLAIMED U/S 80IB OF RS.22,04,200/ - HAS ESCAPED ASSESSMENT. 2 ITA NO. 5240/MUM/2019 M/S. PRINT ELECTRONICS EQUIPMENTS PVT. LTD. 3. WITHOUT PREJUDICE TO THE GROUND NO. 1 THE LEARNED CIT(A) HAS ERRED IN LAW AND FACTS IN NOT APPRECIATING THE FACT THAT THE ASSESSEE HAD CREDITED AN AMOUNT OF RS.73,52,732/ - AS ANNUAL MAINTENANCE CHARGES NOT DERIVED FROM THE MANUFACTURING ACTIVITY IN THE PROFIT & LOSS ACCOUNT AND CLAIMED DEDUCTION U/S 80IB OF RS.26,36,215/ - INSTEAD OF RS.4,32,115/ - . 4. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. AT THE OUTSET, IT IS NOTED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT OF RS.50,00,000/ - FIXED BY CBDT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 FOR FILING APPEAL BEFORE THE ITAT. HENCE, THE APPEAL BY THE REVENUE IS NOT MAINTAINABLE. 4. THE LD. DR COULD NOT DISPU TE THAT THE TAX EFFECT IS BELOW THE SAID LIMIT. HE COULD NOT POINT OUT THAT THE APPEAL FALLS IN ANY OF THE EXCEPTIONS CARVED IN THE SAID CIRCULAR. 5. UPON CAREFUL CONSIDERATION, WE FIND THAT AS THE TAX EFFECT IS BELOW THE LIMIT FIXED BY CBDT FOR FILING A PPEALS BEFORE THE ITAT, THIS APPEAL BY THE REVENUE IS LIABLE TO BE DISMISSED IN LIMINE . ACCORDINGLY, THE APPEAL STANDS DISMISSED AS SUCH. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED UNDER RULE 34(4) OF ITAT RULES ON 1 S T M A R C H , 202 1 . SD/ - SD/ - (C.N. PRASAD) JUDICIAL MEMBER (SHAMIM YAHYA) ACCOUNTANT MEMBER MUMBAI, DATE : 1 S T M A R C H , 20 21 *SSL* 3 ITA NO. 5240/MUM/2019 M/S. PRINT ELECTRONICS EQUIPMENTS PVT. LTD. COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, C BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI