INCOME TAX OFFICER 9(3)(1), MUMBAI V. DISCOVERY PROPERTIES & HOTELS PRIVATE LIMITED, MUMBAI

ITA 5545/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6122 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 01-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI LAKSHMI NAYAKLD
• Assessee Lawyers: PAUL ALMEIDA LD
• Keywords: Tax effect
• Section: 2(22)(e)

Judgement Text

ITA NO.5545/MUM/2018 M/S. DISCOVERY PROPERTIES & HOTELS PRIVATE LTD. ASSESSMENT YEAR :2013-14 1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJIT SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.5545/MUM/2018 ( / ASSESSMENT YEAR: 2013-14) I TO - 9(3)( 1 ) 419, AAYKAR BHAVAN 4 TH FLOOR, M.K. MARG, MUMBAI-400 020. / VS. M/S. DISCOVERY PROPERTIES & HOTELS P.LTD. Z-2, BHAVANI NAGAR MAROL-MAROSHI ROAD, MAROL ANDHERI (E), MUMBAI-400 059. ! ./ ./PAN/GIR NO. AACCD-0870-G ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) ASSESSEE BY : SHRI PAUL ALMEIDA- LD. AR REVENUE BY : MS. JYOTI LAKSHMI NAYAK-LD.DR / DATE OF HEARING : 11/02/2020 / DATE OF PRONOUNCEMENT : 11/02/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2013-14 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME-TAX (APPEALS)-16, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-16/ITO-9(3)(1)/IT-116/2017-18 ORDER DATED 31/07/2018 QUA GRANT OF RELIEF U/S 2(22)(E) FOR RS. 89.77 LACS. ITA NO.5545/MUM/2018 M/S. DISCOVERY PROPERTIES & HOTELS PRIVATE LTD. ASSESSMENT YEAR :2013-14 2 2. THE LEARNED AUTHORIZED REPRESENTATIVE FOR ASSESS EE (AR), AT THE OUTSET, DREW ATTENTION TO THE FACT THAT THE APPEAL IS NOT MAINTAINABLE SINCE THE TAX EFFECT OF QUANTUM ADDITIONS BEING CON TESTED BY THE REVENUE IS LESS THAN MONETARY LIMIT OF RS.50 LACS AS PRESCR IBED BY CBDT IN ITS RECENTLY ISSUED CIRCULAR NO.17/2019 DATED 08/08/201 9 [F.NO.279/MISC.142/2007-TTJ(PT.) GOVERNMENT OF INDI A, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE] AND THEREFORE, THE APPEAL IS LIABLE TO BE DISMISSED. THE LD. DR COULD NOT POINT OUT ANY EX CEPTION AND ALSO COULD NOT CONTROVERT THE FACT THAT THE TAX EFFECT O F QUANTUM ADDITION WAS LESS THAN RS.50 LACS. 3. UPON PERUSAL OF CASE RECORDS, PRIMA FACIE, IT APPEARS THAT THE TAX EFFECT OF QUANTUM ADDITIONS UNDER DISPUTE IS LESS T HAN PRESCRIBED LIMIT OF RS.50 LACS AND THE SAME IS COVERED BY RECENTLY ISSU ED LOW TAX EFFECT CIRCULAR NO.17/2019 DATED 08/08/2019 ISSUED BY CENTRAL BOARD OF DIRECT TAXES [CBDT]. THIS RECENT CIRCULAR FURTHER ENHANCES THE MONETARY LIMIT FIXED IN EARLIER CIRCULAR NO.3 OF 2018 DATED 11/07/ 2018 ISSUED BY CBDT AS AMENDED ON 20/08/2018. THEREFORE, THE APPEAL IS LIABLE TO BE DISMISSED. 4. AT THE SAME TIME, A LIBERTY IS GIVEN TO REVENUE TO SEEK RECALL OF THE APPEAL, IF AT A LATER STAGE, IT IS FOUND THAT THE M ATTER IS COVERED BY ANY EXCEPTIONS PROVIDED IN ANY OF THE CIRCULAR OR IN CA SE THE TAX EFFECT AS AGITATED BY REVENUE EXCEEDS THE PRESCRIBED MONETARY LIMIT. ITA NO.5545/MUM/2018 M/S. DISCOVERY PROPERTIES & HOTELS PRIVATE LTD. ASSESSMENT YEAR :2013-14 3 5. IN THE RESULT, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH FEBRUARY, 2020. SD/- SD/- (AMARJIT SINGH) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 11/02/2020 SR.PS, JAISY VARGHESE ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. ,-$ , , / DR, ITAT, MUMBAI 6. -/01 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.