INCOME TAX OFFICER-3(2)(4), MUMBAI V. M/S. PATODIA SYSTEX LIMITED, MUMBAI

ITA 5641/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8352 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 30-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 13

Judgement Text

ITA NO. 5641/MUM/2019 A.Y. 2010 - 11 INCOME TAX OFFICER - 3(2)(4) VS. M/S PATODIA SYNTEX LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C MUMBAI BEFORE SHRI MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) ITA NO. 5641/MUM/2019 C.O. NO. 21/MUM/2021 (ARISING OUT OF ITA NO.5641/MUM/2019) (ASSESSMENT YEAR: 2010 - 11 ) INCOME TAX OFFICER - 3(2)(4) ROOM NO.673,6 TH FLOOR, AAYAKAR BHAWAN, M.K. ROAD, MUMBAI 400020 VS. M/S PATODIA SYNTEX LIMITED, RAHEJA CHAMBERS, 213, NARIMAN POINT, MUMBAI - 400021 PAN NO. AAACP4751E REVENUE ASSESSEE REVENUE BY : MS. SHREEKALA PARDESHI , D.R ASSESSEE BY : SHRI S.L. JAIN , A.R DATE OF HEARING : 11/03/2021 DATE O F PRONOUNCEMENT : 11 /03 /202 1 ORDER PER RAVISH SOOD JM : THE CAPTIONED APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 8, [FOR SHOR T CIT(A)], MUMBAI, DATED 13.06.2019 , WHICH IN TURNS ARISES FROM THE ASSESSMENT ORDER PASSED BY THE A.O UNDER SECTION 143(3) R.W.S 147 OF THE INCOME TAX ACT 1961, (FOR SHORT ACT), DATED 30.10.2015 . 2. CENTRAL BOARD OF DIRECT TAXES (CBDT) VIDE CIRCULAR NO. 17/2019 DATED 08.08.201 9 HAS AMENDED CIRCULAR NO. 3/2018 DATED 11.07.2018 FOR FURTHER ENHANCEMENT OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT AS MEASURES FOR REDUCING LITIGATION. 3. CBDT VIDE CIRC ULAR NO. 3/2018 DATED 11.07.2018 HAS SPECIFIED THAT APPEALS SHALL NOT BE FILED BEFORE THE INCOME TAX APPELLATE TRIBUNAL (ITAT) IN CASES WHERE THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS.20,00,000/ - . FOR THIS PURPOSE, TAX EFFECT MEANS THE DIFF ERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN ITA NO. 5641/MUM/2019 A.Y. 2010 - 11 INCOME TAX OFFICER - 3(2)(4) VS. M/S PATODIA SYNTEX LIMITED 2 REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. FURTHER, TAX EFFECT SHALL BE TAX ES INCLUDING APPLICABLE SURCHARGE AND CESS. HOWEVER, THE TAX WILL NOT INCLUDE ANY INTEREST THEREON, EXCEPT WHERE CHARGEABILITY OF INTEREST ITSELF IS IN DISPUTE. IN CASE THE CHARGEABILITY OF INTEREST IS THE ISSUE UNDER DISPUTE, THE AMOUNT OF INTEREST SHALL BE THE TAX EFFECT. IN CASES WHERE RETURNED LOSS IS REDUCED OR ASSESSED AS INCOME, THE TAX EFFECT WOULD INCLUDE NOTIONAL TAX ON DISPUTED ADDITIONS. IN CASE OF PENALTY ORDER, THE TAX EFFECT WILL MEAN QUANTUM OF PENALTY DELETED OR REDUCED IN THE ORDER T O BE APPEALED AGAINST. AT PARA 13 OF THE ABOVE CIRCULAR, IT HAS BEEN MENTIONED THAT: 13. THIS CIRCULAR WILL APPLY TO SLPS/APPEALS/CROSS OBJECTION/REFERENCES TO BE FILED HENCEFORTH IN SC/HCS/TRIBUNAL AND IT SHALL ALSO APPLY RETROSPECTIVELY TO PENDING SL PS/APPEALS/CROSS OBJECTIONS/REFERENCES. PENDING APPEALS BELOW THE SPECIFIED TAX LIMITS IN PARA 3 ABOVE MAY BE WITHDRAWN/NOT PRESSED. 4. AS A STEP TOWARDS FURTHER MANAGEMENT OF LITIGATION, CBDT VIDE CIRCULAR NO. 17/2019, DATED 08.08.2019 HAS FIXED THE MONE TARY LIMIT FOR FILING OF APPEALS BEFORE ITAT AT RS.50,00,000/ - . 5. IN THE INSTANT APPEAL FILED BY THE DEPARTMENT, IT WAS AVERRED BY THE LD. A.R THAT THE TAX EFFECT THEREIN INVOLVED WAS BELOW THE MONETARY LIMIT OF RS.50,00,000/ - . THE SAID FACT WAS BROUGH T TO THE NOTICE OF THE LD. DEPARTMENTAL REPRESENTATIVE (FOR SHORT D.R) WHO DID NOT CONTROVERT THE SAME. 6. INSOFAR THE CROSS OBJECTION FILED BY THE ASSESSEE IS CONCERNED, IT WAS STATED BY THE LD. AUTHORIZED REPRESENTATIVE (FOR SHORT A.R) FOR THE ASSESSEE THAT PURSUANT TO THE DISMISSAL OF THE REVENUES APPEAL, THE SAID CROSS - OBJECTION HAVING BEEN RENDERED AS INFRUCTUOUS MAY THEREIN BE PERMITTED TO BE WITHDRAWN. ACCORDINGLY, IN THE BACKDROP OF THE AFORESAID CONCESSION OF THE LD. A.R THE CROSS - OBJECTI ON FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. 7. WITH THE ABOVE OBSERVATIONS THE APPEAL INVOLVING A TAX EFFECT OF LESS THAN RS.50,00,000/ - IS DISMISSED, AND THE CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOU NCED IN TH E OPEN COURT ON 11 .03.2021 SD/ - SD/ - ( MANOJ KUMAR AGGARWAL ) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 11 .03.2021 ROHIT, P.S. ITA NO. 5641/MUM/2019 A.Y. 2010 - 11 INCOME TAX OFFICER - 3(2)(4) VS. M/S PATODIA SYNTEX LIMITED 3 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// (SR. PRIVATE SECRETARY) ITAT, MUMBAI