ITO 8(3)(4), MUMBAI V. VIRAL CHEMICALS P. LTD, MUMBAI

ITA 5854/MUM/2011

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3442 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 20-11-2014
• Assessment Year: 2000-2001
• Appeal Filed On: 18-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Assessment record; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI BEFORE SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 5854 /MUM/2011 ASSESSMENT YEAR: 2000-01 THE A CIT . - 8 ( 3 ) , ROOM NO. 217, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI- 400020. VS. VIRAL CHEMICALS P. LTD. 2 ND FLOOR, SHIV ASHISH, ANDHERI-KURLA ROAD, SAKINAKA, MUMBAI 400072 . PAN- AAACV6885F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. CHANDIP SINGH RESPONDENT BY : SHRI. JAYANT R. BHATT DATE OF HEARING: 15/10/2015 DATE OF PRONOUNCEMENT: 22/01/2016 O R D E R PER RAM LAL NEGI, JM THE AFORESAID APPEAL HAS BEEN FILED BY THE REV ENUE AGAINST IMPUGNED ORDER DATED 25/05/2011 PASSED BY THE CIT( A)-18, MUMBAI IN RESPECT OF THE ORDER OF ASSESSMENT PASSED U/S 14 3(3) FOR THE ASSESSMENT YEAR 2000-01, ON THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWA NCE OF RS. 11,73,760/- SHOWN BY THE ASSESSEE WITHOUT APPRECIAT ING THE FACT THAT THE ASSESSEE AND ALL ITS VARIOUS GROUP CO NCERNS AND COMPANIES HAVE SHOWN SUCH TRADING LOSSES YEAR AFTER YEAR SINCE A.YR. 2000-01 TILL A.YR. 2006-07, WHICH ARE N OTHING BUT 2 ITA NO. 5854 /MUM/2011 ASSESSMENT YEAR: 2000-01 MERE NON-GENUINE PAPER TRANSACTIONS SHOWN TO REDUCE THEIR TAX LIABILITY ON INCOMES FROM OTHER HEADS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE HONBLE INCOME TAX APPELLATE TRIBUNAL BEIN G THE FINAL FACT FINDING AUTHORITY MAY EXERCISE ITS DISCRETION AND CALL FOR THE ASSESSMENT RECORDS OF THE ASSESSEE AND ALL ITS GROU P CONCERNS AND COMPANIES SINCE AYR. 2000-01 AND EXAMINE THE QU ANTUM OF TRADING LOSS SHOWN BY EACH OF THEM IN VARIOUS YE ARS AND DETERMINE THE NATURE OF SUCH LOSSES, WHICH NO PRUDE NT BUSINESSMAN WOULD INCUR YEAR AFTER YEAR. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ITO/ACIT/DCIT BE RESTORED. 3. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND THAT MAY BE NECESSARY. 2. AT THE OUTSET, IT IS NOTICED THAT, THE DISPUTE D ISSUE IS ONLY FOR RS. 11,73,760/- AND THE TAX EFFECT ON THIS AMOUNT IS B ELOW THE SPECIFIED MONETARY LIMIT OF RS. 10 LAKHS. AS PER THE LATEST C BDT CIRCULAR NO. 21 OF 2015, DATED 10 TH DECEMBER, 2015, NEW GUIDELINES OF MONETARY LIMIT FOR FILING OF APPEALS BY THE DEPARTMENT HAS BEEN IS SUED, WHEREBY THE TAX EFFECT FOR FILING OF APPEAL BEFORE THE ITAT HAS BEEN PRESCRIBED AT RS. 10 LAKHS. IN THE SAID CIRCULAR, IT HAS BEEN SPECIFI CALLY CLARIFIED THAT THE SAID INSTRUCTION WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND IS DISMISSED IN LIMINE . 3 ITA NO. 5854 /MUM/2011 ASSESSMENT YEAR: 2000-01 ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND JANUARY, 2016 SD/- SD/- ( B.R.BASKARAN ) (RAM LAL NEGI) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 22/01/2016 / 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 PRAMILA