ASST CIT 4(3)(2), MUMBAI V. MALTI SECURITIES P.LTD, MUMBAI

ITA 5573/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9756 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 09-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• 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 NO. 5573/MUM/2015 ASSESSMENT YEAR : 2006-07 ASST. CIT 4(3)(2) MUMBAI VS. M/S. MALTI SECURITIES PVT. LTD 405, ROTUNGA STOCK EXCHANGE BLDG., B S MARG, MUMBAI 400 049 PAN : AAACM7401N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUMAN KUMAR RESPONDENT BY : NONE DATE OF HEARING : 14 .0 9 .2017 DATE OF PRONOUNCEMENT : 1 4 .0 9 .2017 O R D E R PER P K BANSAL, VICE-PRESIDENT: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF CIT(A)- 9, MUMBAI, DATED 16.09.2015, RELATING TO ASSESSMENT YEAR 2006-07. 2. AT THE VERY OUTSET, WE NOTED THAT IN THIS CASE T HE 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 SHOULD BE FILED BEFORE THIS TRIBUNAL IN CASE TAX EF FECT DOES NOT EXCEED RS.10 ITA NO.5573/MUM/2015 M/S. MALTI SECURITIES PVT. LTD 2 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 CASE, WE NOTED THAT THE TAX EFFE CT 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 THE APPEAL. W E, THEREFORE, DISMISS THE APPEAL 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 NAVNEET LAL ZAVERI VS. AAC 56 ITR 198 (SC). WE ACCO RDINGLY DISMISS THE APPEAL FILED BY THE REVENUE. ITA NO.5573/MUM/2015 M/S. MALTI SECURITIES PVT. LTD 3 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH SEPTEMBER, 2017. SD/- SD/- (PAWAN SINGH) (P K BANSAL) JUDICIAL MEMBER VICE-PRESIDENT MUMBAI; DATED: 15 TH SEPTEMBER, 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